Marginal Tax Rate Calculator
Calculate your marginal tax rate in Australia, including the Medicare levy, to see how much tax you pay on your next dollar of income.
Your results
Calculation breakdown
- Combined rate
- Marginal rate = income tax bracket rate + Medicare levy rate
Worked example
On a $95,000 taxable income, the 30% bracket applies, so with the 2% Medicare levy added the combined marginal rate on the next dollar earned is 32%.
Assumptions
- Does not include the Medicare Levy Surcharge or HELP repayment rates.
- Assumes Australian residency for tax purposes.
Sources
Rates effective 1 July 2026.
How this calculator works
This calculator looks up your resident income tax bracket for a given annual taxable income and adds the standard Medicare levy to show your combined marginal tax rate. This is the rate applied to the next dollar you earn, useful when weighing up overtime, a pay rise or extra investment income.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 01/07/2026.
Frequently asked questions
What is a marginal tax rate?
It is the tax rate applied to the last dollar of income you earn, combining the relevant income tax bracket and the Medicare levy.
Why is my marginal rate higher than my average tax rate?
Because lower brackets of income are taxed at lower rates, your average rate across all income is always below your top marginal rate.
Does this include the Medicare levy surcharge?
No, the surcharge depends on private health insurance status and is calculated separately in the Medicare Levy Surcharge calculator.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.