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Tax Return Calculator

Your tax refund is the difference between the tax withheld from your pay during the year and the tax you actually owe on your taxable income. If your employer withheld more than you owe, you get the difference back. If they withheld less, you have an amount payable. This free tax return calculator works out that difference for you in about thirty seconds.

Enter your gross annual income and the total tax withheld from your payslips or income statement, add any deductions you plan to claim, and the calculator applies the Australian Taxation Office rates for the 2026-27 financial year to give you an estimated refund or amount payable. No email address, no sign-up, no obligation.

This Calculator Covers the 2026-27 Financial Year

The calculator above estimates your position for income earned between 1 July 2026 and 30 June 2027. It uses the ATO rates that took effect on 1 July 2026.

Australian financial years run 1 July to 30 June, and you lodge a return for the year that has already finished. That means the 2026-27 figure is a forecast, not a lodgement estimate. Use it to check whether the tax coming out of your pay is roughly on track, to work out the effect of a pay rise or a new job, or to plan for a tax bill before it arrives.

If you are lodging your 2025-26 return now, this calculator will not give you the right number. The 2025-26 year taxed income between $18,201 and $45,000 at 16 cents in the dollar, and that dropped to 15 cents on 1 July 2026, so the same income produces a different result. Lodgement for 2025-26 closes on 31 October 2026 for self-lodgers. The fastest way to get an accurate figure for that year is to talk to one of our registered tax agents, who will also find deductions a calculator cannot.

Income Tax Rates for Australian Residents

The calculator uses the 2026-27 column. The 2025-26 column is shown for comparison, since that is the year most people are lodging for right now. All figures exclude the 2% Medicare levy, which is applied separately.

Taxable income 2026-27 rate (used by this calculator) 2025-26 rate
$0 to $18,200 Nil Nil
$18,201 to $45,000 15c per $1 over $18,200 16c per $1 over $18,200
$45,001 to $135,000 30c per $1 over $45,000 30c per $1 over $45,000
$135,001 to $190,000 37c per $1 over $135,000 37c per $1 over $135,000
$190,001 and over 45c per $1 over $190,000 45c per $1 over $190,000

Only the second bracket changed, so the maximum benefit is $268 a year for anyone earning above $45,000. A second legislated cut takes that bracket to 14 cents from 1 July 2027.

Rates are progressive. You are only taxed at each rate on the portion of income that falls inside that bracket, not on your whole income. Foreign residents and working holiday makers are taxed under separate schedules and are not entitled to the tax-free threshold. You can check the current rates on the ATO website.

How Your Tax Refund Is Calculated: A Worked Example

Take someone earning $100,000 with no deductions across the 2026-27 year.

  • Income tax. The first $18,200 is untaxed. The next $26,800 is taxed at 15c, which is $4,020. The remaining $55,000 is taxed at 30c, which is $16,500. Total income tax is $20,520.
  • Medicare levy. 2% of $100,000 adds $2,000.
  • Total tax payable. $22,520.
  • Compare against tax withheld. If your payslips show $24,000 withheld across the year, you are on track for an estimated $1,480 back. If they show $22,000, you are $520 short and can expect a bill.

The same income in 2025-26 produced $22,788, because the second bracket was still at 16c.

Every dollar of deductions reduces your taxable income, not your tax bill directly. A $1,000 deduction for someone in the 30c bracket saves $300 in tax, plus $20 in Medicare levy.

What the Calculator Does Not Include

Being clear about the limits is more useful than pretending an estimate is a lodgement.

This tax return calculator does not account for HELP or HECS debt repayments, private health insurance rebates or the Medicare levy surcharge, the Low Income Tax Offset, capital gains, foreign income, rental property income or losses, family tax benefits, or any spouse-related adjustments. It assumes you are an Australian resident for tax purposes and have claimed the tax-free threshold from one employer only.

If you have a second job, an investment property, a share portfolio, or business income, your actual position will differ from the estimate. That is the point at which it is worth speaking to a registered tax agent rather than relying on a calculator.

What You Can Claim to Increase Your Refund

Deductions are the main lever you control. To claim a work-related expense, the ATO requires that you paid for it yourself, were not reimbursed, and that it directly relates to earning your income. You need a record.

Common categories include work-related travel that is not the commute between home and work, tools and equipment, protective clothing and compulsory uniforms, home office running costs, self-education directly connected to your current role, professional subscriptions and union fees, income protection insurance premiums, and donations of $2 or more to registered deductible gift recipients.

For the 2023-24 income year, 10.7 million Australians claimed work-related expenses totalling $31.6 billion, an average of $2,956 each, according to ATO taxation statistics. Most people who miss out do so because they did not keep records, not because they were not entitled.

From 1 July 2026, a standard $1,000 deduction for work-related expenses is available without receipts. That applies to the 2026-27 year this calculator covers. If your actual work expenses come to more than $1,000, you claim the higher amount instead, but you need the records to back it up.

Sole Traders and Small Business Owners

If you run a business, the calculation works differently. Your taxable income is business income minus deductible business expenses, and there is usually no employer withholding tax on your behalf. Instead, you pay PAYG instalments through the year, reported on your BAS.

The result at lodgement is the difference between your instalments and your actual liability. Underpay through the year, and you get a bill. This is the most common reason a tax bill lands larger than expected: business income grew, but the instalment rate the ATO set was based on an older return.

Deductible business expenses can include vehicle running costs for business use, tools and equipment, insurance, subcontractor payments, home office costs where you run the business from home, software subscriptions, and the business portion of phone and internet. Getting the split right between business and private use is where most sole traders either overclaim and attract attention or underclaim and pay more than they need to.

If your bookkeeping is up to date, this is straightforward. If it is a shoebox of receipts, that is what we are here for.

How This Calculator Compares

Most Australian tax return calculators fall into three groups. The ATO’s own calculator is the most accurate and the most detailed, and it takes the longest to complete. Tax agent calculators are usually fast but gated behind an email capture or a lead form. Generic finance-site calculators are quick but often run on outdated rates.

This one sits in the middle deliberately. It is free, it takes under a minute, and there is no email capture or sign-up. Rates are updated in line with the ATO’s published schedules each financial year. It gives you an estimate accurate enough to know roughly where you stand, and it is honest about what it leaves out.

It is not a substitute for lodging a return, and it will not find deductions you did not know about. A registered tax agent will. If the number you get here is not the number you were hoping for, that is usually a conversation worth having.

Get Your Tax Return Sorted Properly

A tax return calculator tells you where you stand. It does not tell you what you missed.

Shoebox Books & Tax is a national bookkeeping and tax accounting franchise, operating since 2012 with more than 70 locations across Australia. Our registered tax agents handle individual and small business returns, and our bookkeepers are certified across Xero, MYOB and QuickBooks Online. Pricing is fixed and published upfront, so you know the cost before you start. You can see our tax pricing or read more about our tax and accounting services.

Because we operate locally through franchise owners, you deal with the same person each year, not a call centre. Find your local Shoebox expert or book a free consultation.

Call us on 1300 009 355

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Disclaimer

This calculation is an estimate only, based on individual income tax rates published by the Australian Taxation Office and including the Medicare levy. It does not account for tax offsets, HELP or HECS repayments, private health insurance adjustments, capital gains, or individual circumstances. For personalised advice or an accurate assessment, speak with a Shoebox tax professional.

Frequently Asked Questions

How do I calculate my tax refund?

Subtract the tax you owe on your taxable income from the tax already withheld from your pay. The difference is your refund, or your amount payable if withholding fell short. Find your gross income and tax withheld on your final payslip or your income statement in myGov, enter both into the tax return calculator above, and add any deductions you intend to claim.

How much tax do I pay on $100,000 in Australia?

For the 2026-27 financial year, an Australian resident earning $100,000 with no deductions pays $20,520 in income tax plus a $2,000 Medicare levy, for a total of $22,520. For the 2025-26 year, the same income produced $22,788, because the second bracket was taxed at 16 cents rather than 15. Whether you receive a refund depends on how much your employer withheld across the year.

Why did my tax bill increase significantly this year?

The three most common causes are a second job or extra income where the tax-free threshold was claimed twice, a rise in income that pushed part of your earnings into a higher bracket, and PAYG instalments set from an earlier and smaller year of business income. Fewer deductions than the previous year, or a HELP debt crossing the repayment threshold, will also do it.

How do I calculate my tax liability as a small business?

Start with total business income, subtract all deductible business expenses, and that gives your taxable income. Sole traders then apply the individual income tax rates above, since business profit is taxed as personal income. Companies are taxed at a flat rate instead. Subtract any PAYG instalments already paid through the year to find the balance owing or refundable.

What business expenses can I claim as tax deductions?

You can claim expenses directly incurred in earning business income, provided you have records. Common claims include vehicle running costs for business travel, tools and equipment, insurance, subcontractor payments, software subscriptions, professional fees, advertising, and the business portion of phone, internet and home office costs. Private use must be excluded. Capital purchases may need to be depreciated rather than claimed in full.

What is the average tax refund in Australia?

There is no single reliable figure, and averages moved significantly after the Low and Middle Income Tax Offset ended in 2022-23. Your refund depends far more on your own withholding and deductions than on any national average. As a reference point, the ATO reported 10.7 million people claiming work-related expenses in 2023-24, averaging $2,956 in deductions each.

How long does it take to get a tax refund?

The ATO processes most electronically lodged returns within two weeks, though some take longer if they are selected for review or if your details do not match third-party data. Paper returns take up to ten weeks. To avoid delays, wait until your income statement shows as “Tax ready” in myGov, check your bank details, and make sure prefilled data matches your records.

Which financial year does this tax return calculator use?

It uses the 2026-27 financial year, covering income earned between 1 July 2026 and 30 June 2027, at the ATO rates that took effect on 1 July 2026. Because you lodge a return for a year that has already ended, treat the result as a forecast rather than a lodgement estimate. If you are lodging your 2025-26 return, the rates differ and you should speak to a registered tax agent.

Can Shoebox Books & Tax lodge my return for me?

Yes. Our registered tax agents lodge individual, sole trader and small business returns across Australia through our network of 70+ locations. Pricing is fixed and published upfront on our tax pricing page. Lodging through a registered tax agent also gives you access to extended lodgement deadlines beyond the 31 October cut-off for self-lodgers.