Tax refund calculator 2025-26 (Australia)
Estimate your tax refund or tax bill for 2025-26 (the return you lodge now) or plan ahead for 2026-27. Enter your income, the tax withheld from your income statement and your deductions. The calculator works out your tax, the low income tax offset, the Medicare levy, the Medicare levy surcharge if you don't have hospital cover, your HELP repayment and franking credits, line by line. It uses the ATO's published rates and matches the ATO's worked examples.
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CalculatorWorked examplesRates usedFAQ
Worked examples
2025-26: salary $85,000, tax withheld $17,000, deductions $1,500, no HELP, hospital cover.
- Taxable income = $85,000 − $1,500 = $83,500.
- Tax = $4,288 + ($83,500 − $45,000) × 30% = $15,838. No low income tax offset (income over $66,667).
- Medicare levy = 2% × $83,500 = $1,670. Total tax = $17,508.
- Withheld $17,000, so about $508 to pay. Another $1,700 of deductions would turn it into a small refund.
2025-26: part-time wages $40,000, tax withheld $4,200. Tax = ($40,000 − $18,200) × 16% = $3,488. Low income tax offset = $700 − ($40,000 − $37,500) × 5c = $575. Medicare levy = $800. Total $3,713, so a refund of $487.
ATO example (2026-27, Medicare levy surcharge): Tom is single with no hospital cover. Taxable income $90,000 plus reportable fringe benefits $27,000 gives income for MLS purposes of $117,000: Tier 1, 1%. MLS = 1% × $117,000 = $1,170.
ATO example (low income tax offset): taxable income $45,000 gives an offset of $700 − ($7,500 × 5c) = $325.
ATO example (Medicare levy reduction, 2025-26): taxable income $29,000 is in the reduction range, so the levy is ($29,000 − $28,011) × 10% = $98.90 instead of $580.
Rates used
| Taxable income | 2025-26 tax | 2026-27 tax |
|---|---|---|
| $0 – $18,200 | Nil | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c over $45,000 | $4,020 + 30c over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c over $135,000 | $31,020 + 37c over $135,000 |
| Over $190,000 | $51,638 + 45c over $190,000 | $51,370 + 45c over $190,000 |
- Low income tax offset: $700 up to $37,500, reducing by 5c per dollar to $45,000 ($325), then by 1.5c per dollar to nil at $66,667.
- Medicare levy: 2%. For singles it's nil up to $28,011 and phased in at 10c per dollar up to $35,013 (the latest ATO thresholds; also used here for 2026-27 until new ones are set). Family and senior thresholds are higher and aren't modelled.
- Medicare levy surcharge (no hospital cover): 1%, 1.25% or 1.5%. Singles: over $101,000 / $118,000 / $158,000 in 2025-26, and over $105,000 / $123,000 / $164,000 in 2026-27. Family thresholds are double, plus $1,500 for each dependent child after the first.
- HELP: see the HECS / HELP repayment calculator for the thresholds.
Not covered: non-residents, working holiday makers, the senior and pensioner offset, private health insurance rebate adjustments, capital gains, and the family Medicare levy reduction.
FAQ
How is my tax refund worked out?
Your refund is the tax already withheld from your pay minus the tax you owe for the year. Tax owed is income tax on your taxable income, less offsets like the low income tax offset, plus the Medicare levy and any Medicare levy surcharge and HELP repayment, minus franking credits.
How much tax do I pay on $85,000 in 2025-26?
Income tax on $85,000 is $4,288 + ($85,000 − $45,000) × 30% = $16,288, plus $1,700 Medicare levy, a total of $17,988. In 2026-27 the income tax falls to $16,020 because the 16% rate drops to 15%.
What are the tax rates for 2025-26?
Nil up to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy. From 1 July 2026 the 16% rate falls to 15%.
Why do I owe tax instead of getting a refund?
Common reasons are having two jobs and claiming the tax-free threshold from both, side or investment income with no tax withheld, a HELP debt not set up with your employer, or no private hospital cover above the surcharge threshold.
Do I pay the Medicare levy surcharge?
Only if you didn’t have an appropriate level of private hospital cover and your income for MLS purposes is above the threshold: $101,000 for singles in 2025-26 and $105,000 in 2026-27. The rate is 1%, 1.25% or 1.5%.
Are franking credits refundable?
Yes, for Australian resident individuals. Franking credits are added to your income, then come off your tax. If they’re more than your tax, the extra is refunded.
When will I get my refund?
The ATO says most online returns are processed within about 2 weeks. Lodging after the end of July usually means your income statement and bank interest are already pre-filled.
Sources (checked 17 Oct 2026): ATO Tax rates: Australian residents; ATO Low and middle income earner tax offsets; ATO Medicare levy reduction for low-income earners; ATO Medicare levy surcharge income thresholds and rates; ATO Study and training support loans rates and repayment thresholds.
General information, not tax advice. This is an estimate. Your actual result is worked out by the ATO when you lodge. Check with the ATO or a registered tax agent for your situation.