How much tax do I pay on $80,000 in Australia (2024–25)?

On $80,000 income in 2024–25, you pay approximately $16,717 in income tax plus $1,600 Medicare levy = $18,317 total. Your take-home pay is approximately $61,683 per year or $5,140 per month. The effective tax rate is 22.9%.

What is the Medicare levy in Australia?

The Medicare levy is 2% of your taxable income, collected on top of income tax. It funds Australia's public health system. Low-income earners are exempt or pay a reduced rate below $26,000.

What changed in the Stage 3 tax cuts?

From 1 July 2024, the Stage 3 tax cuts reduced the 32.5% rate to 30% for incomes $45,001–$135,000, increased the 37% threshold from $120,000 to $135,000, and increased the 45% threshold from $180,000 to $190,000. Most Australian taxpayers received a tax cut.

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Income Tax Calculator

Calculate your Australian income tax, Medicare levy, and take-home pay for 2024–25. Updated for Stage 3 tax cuts. ATO-sourced rates.

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See your exact income tax, Medicare levy, LITO offset, and take-home pay — broken down by annual, monthly, fortnightly, and weekly.

Australia's 2024–25 tax brackets

Australia uses a progressive tax system — higher income earners pay a higher rate, but only on the portion of income above each threshold. The 2024–25 rates (post Stage 3 cuts) are:

Income range	Rate	Tax on this portion
$0 – $18,200	0%	Nil
$18,201 – $45,000	19%	19¢ per $1 over $18,200
$45,001 – $135,000	30%	$5,092 + 30¢ per $1 over $45,000
$135,001 – $190,000	37%	$32,092 + 37¢ per $1 over $135,000
Over $190,000	45%	$52,092 + 45¢ per $1 over $190,000

Plus 2% Medicare levy on most incomes above ~$26,000. Source: ATO.

The Stage 3 tax cuts explained

From 1 July 2024, significant changes to Australian income tax took effect. Here's what changed vs the previous year:

32.5% → 30%

Middle rate cut for incomes $45,001–$135,000

Save Up to $1,429

$120k → $135k

37% bracket threshold raised

Save Up to $5,550

$180k → $190k

45% top rate threshold raised

Save Up to $3,700

The original Stage 3 design was modified in January 2024 to provide greater benefit to lower and middle income earners. The revised cuts were legislated and took effect 1 July 2024.

How your take-home pay is calculated

Gross income

Your total salary before any deductions

Income tax

Progressive tax at ATO bracket rates, less LITO offset

Medicare levy

2% of taxable income for the public health system

Take-home pay

Gross income minus income tax minus Medicare levy

Note: This calculator shows income tax and Medicare levy only. HECS/HELP repayments are a separate deduction — use our HECS calculator to model those. Salary sacrifice, private health insurance rebates, and other offsets are not included here. Your take-home pay also affects your mortgage borrowing power.

Frequently asked questions

From 1 July 2024, the Stage 3 tax cuts reduced the 32.5% marginal rate to 30% for incomes between $45,001 and $135,000. The 37% rate threshold increased from $120,001 to $135,001, and the 45% rate threshold increased from $180,001 to $190,001. The 19% rate for $18,201–$45,000 was unchanged. Most Australian taxpayers received a tax reduction.

LITO is an automatic tax reduction for low-income earners. In 2024–25, eligible taxpayers receive up to $700 offset on incomes up to $37,500. The offset phases out between $37,500 and $66,667. You don't need to apply — it's automatically applied in your tax assessment.

Employer super contributions (the 11.5% SGC) are not included in your taxable income — they're taxed at 15% inside the super fund, not at your marginal rate. However, salary sacrifice contributions you make voluntarily are also taxed at 15%, which is why salary sacrificing to super is tax-effective for most earners above $45,000.

HECS/HELP repayments are not a tax — they're a separate deduction made by the ATO after calculating your income tax. They're based on your repayment income and rate (1–10% depending on income). Use our HECS calculator to model your repayments. Note that HECS debt also affects mortgage borrowing power as lenders treat repayments as a monthly commitment.

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