Income Tax Calculator Australia (FY25-26) - Pay Tax Calculator

Income tax is a tax imposed by governments on the income generated by individuals and businesses operating within their jurisdiction. Taxable income is the income you must pay tax on according to your government’s tax thresholds. Taxable business income is generally defined as the difference between a company's business income and its operating and capital expenses; this is referred to as the company's net profit.

Superannuation, referred to as Super, is money set aside by your employer over the course of your working life to support your financial needs in retirement. Your employer must pay a minimum amount based on the super guarantee rate into your super account.

The Medicare levy is used to help fund part of the cost of the Australian public healthcare system also known as Medicare. The Medicare levy is 2% of your taxable income and is paid in addition to the tax you pay on your taxable income.

If you earned $80,000 annually in the financial year 2025-2026 you would pay $14,788 in income tax.

Please note that this is a simple estimate which does not include the Medicare levy, superannuation considerations, deductions and any other considerations specific to you. For a more complete picture, please use our pay and income tax calculator.

You can claim tax deductions for some expenses you incur to earn your income as an employee in your tax return. Most expenses are work-related expenses including motor vehicle and car expenses, travel expenses, clothing, laundry and dry-cleaning expenses and self-education expenses. Learn more about the deductions you can claim in your tax return.

The Australian Taxation Office sets income tax rates that show the amount of tax payable in every dollar for each income tax bracket. Find out which individual income tax rates apply to you.

The Australian Taxation Office (ATO) produces a range of tax tables to help employers work out how much to withhold from payments made to employees. Learn more about the weekly tax table, fortnightly tax table, monthly tax table and the yearly tax table and meeting your obligations to the ATO.

You can file a tax return electronically or by paper. To lodge your own tax return online with myTax you will need to create a myGov account and link it to the Australian Taxation Office. Read our guide on filing an online tax return to find out more about online tax return lodgment. You can also use a registered tax agent to help you prepare and lodge your tax return. Alternatively, you can lodge a paper tax return by mail.

Use QuickBooks pay and income tax calculator to help calculate your income tax. Simply enter your total income into the pay calculator to calculate your gross pay, tax deductions and net pay.

The income tax calculator results are based on the information you provide at the time of calculation. Our tax withheld calculator applies to payments made in the 2025–26 income year. For information about other changes for the 2025–26 income year refer to Tax tables provided on the Australian Taxation Office website.

Gross income refers to a baseline salary and the income earned before tax. Net income is often referred to as take-home pay and after-tax pay because it includes the amount remaining after all tax and deductions are withheld.

Employees who earn a salary are paid a specific fixed amount per pay period over an entire year whereas employees who earn wages are paid by the hour or piece of work.

Pay As You Go (PAYG) refers to two different processes systemized by the Australian Taxation Office: PAYG instalments and PAYG withholding. Learn more about these PAYG processes and your legal obligations.

PAYG instalments are regular quarterly prepayments of tax on your business and investment income. PAYG instalments allow you to pay a quarterly tax voluntarily instead of being hit with a massive tax bill when you lodge your tax return.

PAYG withholding is an employer’s legal obligation to withhold tax from payments made to their employees and contractors. It is an accumulative tax that employers pay directly to the ATO on behalf of their employees. Learn more about your legal obligations around PAYG withholding.

A PAYG payment summary is a statement that details how much each employee was paid and the amount of PAYG withholding. The PAYG payment summary method has been replaced by Single Touch Payroll (STP) reporting which automatically reports payroll details including salaries, wages, PAYG withholding and superannuation directly to the ATO after each pay period. QuickBooks Payroll Software is ATO approved and comes with built-in STP compliance to help you stay on top of your PAYG and STP reporting.