Calculate how much tax you pay, and how much you're left, based on the Australian Tax Office's personal income tax scales
These calculations provided by Mozo are for basic income for a single taxpayer and are estimates only. The calculations do not include rebates, loadings, levy or HECS-HELP payments. Calculations are for the 2021/22 financial year.
Income tax is a government levy charged on your annual income. Whether you earn money from employment, pensions, government payments, deposits, investments, or foreign income, you will need to report it to the Australian Taxation Office (ATO) when you file your tax return.
In Australia, the amount of income tax you pay depends on how much you earn and any eligible deductions/offsets you claim on your tax return.
The income tax rates for 2022-2023 are as follows:
$0 - $18,200: Nil
$18,2021 - $45,000: 19 cents per dollar over $18,200
$45,001 - $120,000: $5,092 plus 32.5 cents per dollar over $45,000
$120,001 – $180,000: $29,467 plus 37 cents per dollar over $120,000
$180,001 and over: $51,667 plus 45 cents per dollar over $180,000
But in case you can’t do tax maths in your head, our handy calculator can help you get a rough estimate of your taxable income (not including any deductions and offsets).
Currently, the minimum tax-free threshold for your income is $18,200 a year, meaning if you earn less than that amount, you don't have to pay income tax. You may be liable for other taxes, however.
The amount of tax you need to pay in Australia will depend on your income, deductions, offsets, and other assets like trusts or costs like the 2% Medicare levy or capital gains tax. Consult a tax professional if you’re unsure how much you need to report or claim when lodging your tax return.
There are certain kinds of income that are not taxable in Australia, which can include:
Lotto winnings and other cash prizes
Genuine cash gifts
Some government grants and payments
Child support
Tax-free portion of a redundancy payment
Government super co-contributions
‘After-tax' or pay-as-you-go (PAYG) income is often a more practical way of thinking about how much you earn in a year. This is the amount of money you earn minus whatever you potentially owe in taxes.
For example, if you work full-time, your employer will withhold tax from your paychecks and send it to the ATO for you – that way, you’re not stung with an EOFY tax bill you can’t pay. This means your paychecks represent your after-tax income, not your full salary. If you’re self-employed, you will need to set the money aside yourself.
A tax return is a form issued by the ATO you can complete online or via paper. Your tax return reports information to the government, like how much you earned or what deductions you’re claiming, so they can accurately calculate how much tax you owe.
Once you submit your tax return, it will be processed by the ATO (usually within 2 weeks for online returns). Afterwards, the ATO will then let you know how much tax you paid and whether you’re eligible for a tax refund.
You can create and lodge your tax return online or on paper. The ATO offers a free online do-it-yourself tax return service accessed via your myGov account, but you can also enlist the help of a qualified accountant or tax agent (most of the fees for which you can actually claim as deductions).
For more detailed information on your tax return, you can head over to the ATO’s website, or check out the government website MoneySmart for some handy quick guides to common tax questions.