Average Tax Rate Calculator
Work out your average (effective) tax rate in Australia by dividing total tax payable, including the Medicare levy, by your total taxable income.
Your results
Calculation breakdown
- Average rate
- Average rate = total tax payable ÷ total taxable income
Worked example
A $90,000 taxable income attracts about $19,138 in tax and Medicare levy, an average tax rate of roughly 21%, well below the 32% marginal rate on the top slice of that income.
Assumptions
- Includes standard Medicare levy, excludes offsets and the surcharge.
- Uses resident individual tax brackets.
Sources
Rates effective 1 July 2026.
How this calculator works
Enter your annual taxable income to calculate the total resident income tax payable plus the Medicare levy, then see this expressed as an average (effective) rate across your whole income. This differs from your marginal rate, which only reflects tax on your last dollar earned.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 01/07/2026.
Frequently asked questions
What is the difference between average and marginal tax rate?
Average tax rate is total tax divided by total income, while marginal tax rate is the rate on your next dollar earned.
Does this include offsets like LITO?
No, this shows tax before offsets; use the Tax Offsets Estimate calculator to see how offsets can reduce the amount payable.
Why is my average tax rate lower than my tax bracket?
Because only income above each threshold is taxed at that bracket's rate, so blending in the lower brackets pulls the average down.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.