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Tax Return Estimator 2026

The return you lodge in 2026 covers the income year that ended 30 June 2026, so that is what this estimator defaults to. Enter your income, PAYG withheld and deductions — or switch to 2026–27 if you are planning ahead rather than lodging.

Your details
Result FY 2025–26
Estimated Refund
$0
Taxable Income$0
Income Tax Payable$0
Medicare Levy (2%)$0
Total Tax Payable$0
PAYG Withheld$0
Effective Tax Rate0%

How to Estimate Your Tax Return

Your tax refund (or tax bill) is the difference between what your employer withheld throughout the year and what you actually owe the ATO. Here's how the calculation works:

  1. Start with gross income — your total salary, wages, interest, dividends, and other assessable income.
  2. Subtract deductions — work-related expenses, charitable donations, investment property costs, etc. This gives your taxable income.
  3. Calculate tax on taxable income — using the tax brackets for the year you selected, plus the 2% Medicare levy.
  4. Compare to PAYG withheld — if your employer withheld more than you owe, you get a refund. If less, you owe the difference.

A worked example

On $90,000 gross with $19,500 already withheld through PAYG, $3,000 of work-related deductions and $500 of other deductions bring taxable income down to $86,500. Tax on that for the 2025–26 income year is $18,468 — less than was withheld, so the estimate is a $1,032 refund. On 2026–27 rates the same figures would give $1,300, which is the $268 difference between the two years.

Which Year Are You Actually Lodging?

This trips people up every August. The 2026 tax return covers the 2025–26 income year — 1 July 2025 to 30 June 2026 — and that is the year the estimator defaults to. FY 2026–27 is the year you are living through now; you don't lodge it until July 2027.

The difference is not cosmetic. The bottom marginal rate on income between $18,201 and $45,000 was 16% in 2025–26 and drops to 15% in 2026–27. That is worth a flat $268 to anyone with taxable income at or above $45,000, and proportionally less below it. Estimate the wrong year and your refund figure is out by that amount. Use the toggle above to switch.

Common Deductions That Increase Your Refund

  • Work-from-home expenses (70c/hour fixed rate method)
  • Car expenses for work (cents per km or logbook method)
  • Tools, equipment, and uniforms required for your job
  • Self-education expenses related to your current role
  • Charitable donations to DGR-registered organisations
  • Income protection insurance premiums (outside super)
  • Investment property interest, rates, and management fees

Low Income Tax Offset (LITO)

LITO is not a flat $700 for everyone under $66,667 — it tapers away in two stages:

  • $37,500 or less — the full $700.
  • $37,501 to $45,000 — $700 minus 5 cents for every dollar above $37,500 (so $325 at $45,000).
  • $45,001 to $66,667 — $325 minus 1.5 cents for every dollar above $45,000.
  • Above $66,667 — nil.

LITO is non-refundable and the ATO applies it automatically: it can cut your tax bill to zero but it never becomes a cash payment on its own. This estimator does not apply it, so if you are under $66,667 your actual refund may be higher than the figure above.

Rates current as at 7 August 2026 — resident tax rates for FY 2025–26 and FY 2026–27 and the 2% Medicare levy (ATO) · the 2026 return covers income year 2025–26 (ATO) · LITO taper (ATO) · Medicare levy low-income thresholds applied are the single, no-dependants figures

Frequently Asked Questions

How do I estimate my tax refund in Australia?
Subtract your deductions from gross income to get taxable income. Calculate the tax owed on that amount using the brackets for the income year you are claiming, plus the 2% Medicare levy. If your PAYG withheld exceeds that total, the difference is your refund. Our calculator does all of this automatically for either 2025–26 or 2026–27.
Which year should I pick — 2025–26 or 2026–27?
Pick 2025–26 if you are lodging now. The return you lodge in 2026 covers the income year that ended 30 June 2026, and that year uses a 16% bottom marginal rate. Pick 2026–27 only if you are forecasting the year currently in progress, where the bottom rate drops to 15%. The gap between them is a flat $268 at any taxable income at or above $45,000.
What deductions can I claim on my tax return?
Common deductions include work-related expenses (home office, car, tools, uniforms), self-education, charitable donations, investment costs, and income protection insurance. If your total work-related claim comes to $300 or less, you don't need full written evidence — but you must still be able to show how you worked the claim out. If it comes to more than $300, you need written evidence for the whole claim, not just the part above $300.
Where do I find my PAYG withheld amount?
Your PAYG withheld amount appears on your income statement (previously called a payment summary or group certificate) from your employer. You can also find it pre-filled in myTax if your employer has reported to the ATO through Single Touch Payroll.
When will I receive my tax refund?
The ATO's current guidance is that most returns lodged online process within 12 business days. Returns lodged through a registered tax agent depend on when the agent submits. The ATO pays refunds directly into your nominated bank account.
Why might my actual refund differ from this estimate?
This estimator uses simplified tax calculations. It does not apply the Low Income Tax Offset (LITO), HECS-HELP repayments, the Medicare levy surcharge, private health rebate adjustments, or other tax offsets. It also applies the single, no-dependants Medicare levy low-income thresholds, so if you have a spouse or dependants your ATO assessment will differ.
Do I have to lodge a tax return if I have a refund?
Yes — you must still lodge a return to claim your refund. The ATO will not automatically issue a refund. You can lodge online via myTax any time after 1 July. Self-lodgers normally face a 31 October deadline, but 31 October 2026 falls on a Saturday, so the 2025–26 return is due Monday 2 November 2026.
Disclaimer: This estimator provides a simplified estimate only, for the income year selected above (2025–26 by default — the return being lodged now). It does not account for the Low Income Tax Offset, HECS-HELP repayments, Medicare levy surcharge, tax offsets, family Medicare levy thresholds, or all deduction types. Not a substitute for professional tax advice or an official ATO assessment.

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