Step by step
| Amount | |
|---|---|
| Salary | $100,000 |
| Interest and dividends | $1,200 |
| Deductions | −$3,000 |
| Taxable income | $98,200 |
| Tax ($4,288 + 30% over $45,000) | $20,248 |
| Medicare levy (2%) | $1,964 |
| Total owed | $22,212 |
| Withheld | $22,800 |
| Refund | $588 |
No low income tax offset applies at this level (it ends at $66,667). Each $100 of deductions saves $32.
Watch out for the Medicare levy surcharge
Above about $101,000 of income for MLS purposes (single), you pay an extra 1%–1.5% if you don’t hold private hospital cover. This calculator doesn’t include it — if it applies to you, your refund will be smaller.
What changes in 2026-27
From 1 July 2026 the 16% rate drops to 15%, saving $268 a year for anyone earning over $45,000. With the same figures for 2026-27, the tax owed would be $21,944. But don’t expect a bigger refund because of it: employers already withhold less from 1 July 2026, so the saving arrives in your pay, not at tax time.
Making the most of your return
- Check your private health statement and your donations receipts.
- Investors: interest on borrowings for shares and rental properties, and account fees, can be deductible.
- Salary sacrifice to super lowers your taxable income, but it is done through your employer during the year, not on the return.
Deductions that are often missed
At this income, records really pay off: each $1,000 of legitimate deductions is worth $320. Commonly missed items include the decline in value of a work laptop or phone (if over $300, it is depreciated over a few years), income protection insurance premiums held outside super, subscriptions to professional journals and software, and the cost of a tax agent from last year.
The ATO compares claims with others in similar jobs and income ranges, so keep receipts and a simple explanation of how each expense relates to earning your income. Claims for working from home need a record of the actual hours you worked at home across the year.
One last tip: if you expect a big bill because of investment income, you can ask the ATO to vary your PAYG instalments or pay voluntary amounts during the year. Spreading the payments makes tax time much calmer.
Key 2025-26 figures (checked 5 November 2026)
| Item | Figure |
|---|---|
| Tax-free threshold | $18,200 |
| Rates | 16% / 30% / 37% / 45% |
| Low income tax offset | Up to $700 |
| Medicare levy | 2% (nil to $28,011 single) |
| HELP threshold | $67,000 (marginal 15% / 17%) |
| Self-lodgement deadline | 31 October 2026 |
FAQ
What is the tax refund on $100,000 salary?
About $588 for 2025-26 with $3,000 of deductions, $1,200 of interest and $22,800 withheld.
How much tax is payable on $100,000 in 2025-26?
$22,212 including the Medicare levy on taxable income of $98,200.
Will the 15% rate increase my 2026-27 refund?
Not really — the $268 saving is already reflected in lower withholding from 1 July 2026.
Sources (checked 5 November 2026): ATO “Tax rates – Australian resident” (2025-26 and 2026-27), ATO low income tax offset, ATO “Medicare levy reduction for low income earners” (2025-26 thresholds $28,011 / $35,013), ATO “Study and training support loans rates and repayment thresholds” (2025-26 and 2026-27), Treasury Laws Amendment (More Cost of Living Relief) Act 2025 (15% from 1 July 2026).