It’s almost time to lodge your tax return for 2021 and millions of Australians stand to reap financial benefits out of the Budget 2021-22.
The following income tax rates show the amount of tax payable in every dollar for each income tax bracket depending on your circumstances.
| Taxable income | Tax on this income |
|---|---|
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 19 cents for each $1 over $18,200 |
| $45,001 – $120,000 | $5,092 plus 32.5 cents for each $1 over $45,000 |
| $120,001 – $180,000 | $29,467 plus 37 cents for each $1 over $120,000 |
| $180,001 and over | $51,667 plus 45 cents for each $1 over $180,000 |
The ATO publishes a simple tax calculator to help you calculate the tax on your taxable income but the official 2020–21 calculator will only be available from 1 July 2021.
You can use this simple tax calculator (estimator) below to find out:
- how much Australian income tax you should be paying
- what your take home salary will be when tax and the Medicare levy are removed
- your marginal tax rate
- If you will be better off this financial year compared to the 2019-2020 financial year.
The calculated results are based on the information you provided at the time of the calculation. You should use these results as an estimate and for guidance purposes only.
The exact amount of your tax payable or refund can only be calculated upon lodgment of your income tax return.
An individual’s circumstances may result in an actual tax outcome different than that generated by the estimator.
- The rates are for Australian residents.
- Your marginal tax rate does not include the Medicare levy, which is calculated separately.
- The Medicare levy is calculated as 2% of taxable income for most taxpayers. The Medicare levy in this calculator is based on individual rates and does not take into account family income or dependent children.
- The calculations do not include the Medicare Levy Surcharge (1%-1.5%), an additional levy on individuals and families with higher incomes who do not have private health insurance.
- These calculations do not take into account any tax rebates or tax offsets you may be entitled to.
- For the 2016-17 financial year, the marginal tax rate for incomes over $180,000 includes the Temporary Budget Repair Levy of 2%.
- In most cases, your employer will deduct the income tax from your wages and pay it to the ATO.
