Tax Cut Calculator
See your income tax and take-home pay on the same salary in every year from 2024–25 to 2026–27, and what each change is worth to you.
Your tax cut
Take-home pay in 2026–27 compared with 2025–26
+$588.00
More a year on $80,000.00 · $22.62 a fortnight · +$588.00 since 2024–25
| Year | Income tax | Medicare | Take-home | Change |
|---|---|---|---|---|
| 2024–25 | $14,788.00 | $1,600.00 | $63,612.00 | — |
| 2025–26 | $14,788.00 | $1,600.00 | $63,612.00 | +$0.00 |
| 2026–27 | $14,220.00 | $1,580.00 | $64,200.00 | +$588.00 |
Australian resident, claiming the tax-free threshold. From 2026–27 the $1,000 standard deduction for work-related expenses is included.
Rates checked 12 October 2026 against the ATO · How we calculate · Calculated in your browser; nothing you enter is sent anywhere.
Year-by-year comparison
Each row applies that year’s ATO rates to the same salary: income tax brackets and offsets, the Medicare levy and its thresholds, HECS-HELP if ticked, and from 2026–27 the standard deduction. On $80,000, take-home pay is $63,612.00 in 2024–25 and $64,200.00 in 2026–27.
All tax rates are on the tax rates page.
Legislated changes timeline
1 July 2024 (2024–25)
- Resident tax rates were restructured: the 19% rate became 16%, the 32.5% rate became 30%, the 37% bracket moved to start at $135,001 (from $120,001) and the 45% bracket at $190,001 (from $180,001). ATO
1 July 2025 (2025–26)
- HECS-HELP compulsory repayments moved to a marginal system: nothing on repayment income up to $67,000, then a repayment only on the income above it, replacing a single rate on the whole of your income. ATO
- The super guarantee rose from 11.5% to 12%, paid on top of salary (it does not change take-home pay). ATO
1 July 2026 (2026–27)
- The 16% tax rate fell to 15%. ATO
- A standard deduction of up to $1,000 for work-related expenses is applied automatically for residents with salary or wages, unless they claim more in actual expenses. ATO
1 July 2027 (2027–28) – legislated, not yet in the calculator
Frequently asked questions
How much is the 2026–27 tax cut worth?
Two changes started on 1 July 2026: the 16% rate fell to 15%, worth up to $268 a year, and the standard deduction of up to $1,000 for work-related expenses, worth $1,000 times your marginal rate. Together they add $438.00 on $40,000, $588.00 on $80,000, $658.00 on $150,000 compared with 2025–26.
Is there another tax cut in 2027?
Yes. It is law that from 1 July 2027 the 15% rate falls to 14%, and a Working Australians tax offset of up to $250 starts for residents earning labour income. The calculator will add 2027–28 once the ATO publishes the full rates.
Why does my tax cut look small?
The rate cut only applies to income between $18,201 and $45,000, so its value stops growing once you earn $45,000. The standard deduction is worth more on higher marginal rates, but only if you don't already claim more than $1,000 of work-related expenses, in which case it adds nothing.