Australian Tax Return Calculator — Estimate Your Refund
Estimate your tax refund or amount owing.
Estimate your tax refund or amount owing for 2025–2026. Enter annual totals, then switch financial years to compare outcomes using existing ATO rate settings.
Tax Return Inputs
Income and withholding
Add taxable income and either enter PAYG withheld or let the tool estimate it from the selected year's rates.
Deductions and credits
Add deductions, offsets and franking credits to refine the estimate.
Additional settings
Sections show their current value. Expand to edit.
Used to compute Adjusted Taxable Income for HECS / MLS thresholds.
Tax Return Estimate
Estimated refund
$2,012
Net outcome: $2,012
- Tax withheld
- $20,000
- Total liability
- $17,988
- Taxable income
- $85,000
- Net outcome
- $2,012
- Based on the assumptions entered, PAYG withheld is above the estimated liability.
Liability breakdown (2025-26)
- Income tax (after LITO)
- $16,288
- Offsets and credits applied
- -$0
- Adjusted income tax
- $16,288
- Medicare levy
- $1,700
- MLS surcharge
- $0
- HECS/HELP repayment
- $0
Related tools
Estimate only. Results are based on your selected financial year and configured rates. This is not tax advice.
Example: $85,000 salary, $18,500 PAYG withheld (2025–2026)
A resident with a $85,000 salary, tax-free threshold claimed, no HECS debt, and $18,500 withheld throughout the year:
Tax liability
- Income tax (after LITO):$16,288
- Medicare levy (2%):$1,700
- Total liability:$17,988
Return outcome
- PAYG withheld:$18,500
- Total liability:$17,988
- Estimated refund:$512
Example only. Enter your own figures in the calculator above.
How Your Tax Return Estimate Works
Why Estimate Before You Lodge?
Most Australians lodge their tax return between July and October, but knowing your approximate outcome earlier helps you plan cash flow, adjust PAYG withholding if you consistently owe, or time deductible expenses before 30 June. This income tax calculator lets you test different scenarios — adding deductions, toggling HECS, or switching financial years — without committing to anything at the ATO. Use it as a simple tax calculator to estimate your refund before tax time.
If you want the explanation behind the number, read the tax refund guide. And if your result is moving because of private cover settings, the Medicare Levy Surcharge guide is the right follow-up.
How It Works
- Enter your annual salary: Type in your total salary and wages for the financial year before tax.
- Enter PAYG tax withheld: Use the total from your income statement in myGov, or tick the estimate box to have the calculator derive it from ATO rates.
- Add deductions and credits: Enter work-related deductions, other tax offsets, or franking credits to reduce your tax liability.
- Adjust your tax profile: Toggle residency status, tax-free threshold, HECS/HELP debt, Medicare exemption, and private health cover.
- Read your estimate: The results panel shows your estimated refund or amount owing, with a full liability breakdown.
Key Concepts
PAYG Withholding
Tax deducted from each pay by your employer. The difference between what was withheld and what you actually owe determines your refund or amount owing.
Low Income Tax Offset (LITO)
An automatic tax reduction for incomes below $66,667. Applied after income tax is calculated — you don't need to claim it.
Medicare Levy & MLS
The standard 2% Medicare Levy funds public health. Without private hospital cover above the MLS threshold ($101,000 for 2025-26), the Medicare Levy Surcharge (1–1.5%) may also apply. The threshold adjusts when you switch financial years.
Deductions & Offsets
Work-related deductions reduce taxable income directly. Tax offsets and franking credits reduce the tax owed after calculation, subject to caps.
This is an estimate, not a tax return
Your ATO notice of assessment may differ based on additional income sources, specific deduction rules, prior year offsets, private health insurance rebate adjustments, and full ATO processing. Always consult a registered tax agent for advice specific to your situation.
For a plain-English walkthrough of why some people still owe tax despite PAYG withholding, start with our tax refund guide.
What this tax calculator Australia covers
This Australian tax calculator estimates income tax, LITO, Medicare levy, Medicare Levy Surcharge, and HECS/HELP where selected. It then compares those liabilities with your total PAYG tax withheld to calculate your tax refund or amount owing.
- Annual salary/wages and other taxable income
- Deductions, offsets, and franking credits
- Resident status, tax-free threshold, HECS and Medicare settings
- Financial-year switcher using existing configured rates only
Tax Return Estimate FAQs
How is my tax return estimate calculated?
The calculator adds your salary, wages, and other taxable income, then subtracts deductions to get taxable income. It applies 2025–2026 ATO rates for income tax (with LITO applied automatically), Medicare levy (2%), Medicare Levy Surcharge where applicable, and HECS/HELP repayments if selected. Those liabilities are totalled and compared to your PAYG tax withheld to produce a refund or amount owing.
Can I select a different financial year?
Yes. Use the financial year selector at the top of the input panel. The calculator updates instantly using the configured tax brackets, LITO thresholds, and Medicare rates for the selected year — no data entry needed beyond your own figures.
Does this include LITO, offsets and franking credits?
Yes. The Low Income Tax Offset (LITO) is applied automatically based on taxable income. Additional tax offsets and franking credits you enter are applied against income tax after LITO. Credits are capped so they cannot reduce income tax below zero — consistent with how the ATO processes a standard tax return.
What is PAYG tax withheld and where do I find it?
PAYG (Pay As You Go) withholding is the tax your employer deducted from each pay during the year. You can find the total on your income statement in myGov (ATO online services) or on a payment summary from your employer. If you don't have this figure, tick the 'estimate' option to have the calculator derive it from ATO rates for your income level.
How does Medicare Levy Surcharge affect my estimate?
If your income exceeds the MLS threshold ($101,000 single for 2025-26 — the threshold varies by year) and you don't hold an appropriate level of private hospital cover, you may owe MLS of 1%–1.5% on top of the standard 2% Medicare levy. Toggle 'Private cover' on in the settings to remove MLS from your estimate, or enable family thresholds if your household situation applies.
Is this my final ATO assessment?
No. This tool provides an estimate only and is not tax advice. Your ATO notice of assessment may differ based on additional income sources, specific deduction rules, prior year offsets, private health insurance rebate adjustments, and full ATO processing. Consult a registered tax agent for advice specific to your situation.
How much tax refund will I get on an $80,000 salary?
On an $80,000 salary for 2025-26 with the tax-free threshold claimed, no HECS debt, and standard PAYG withholding, your total tax liability is roughly $16,388 (income tax after LITO plus 2% Medicare levy). If your employer withheld the correct amount through the year, you may receive a small refund or owe very little. Work-related deductions above $300 can increase the refund — enter your actual figures above to see your specific estimate.
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