What are the 2024-25 Australian income tax rates?

Stage 3 rates from July 2024: 0% up to $18,200; 19% from $18,201-$45,000; 32.5% from $45,001-$135,000 (new); 37% from $135,001-$190,000; 45% above $190,000. The 32.5% bracket now extends much further due to Stage 3.

What is the Low Income Tax Offset (LITO)?

LITO provides up to $700 tax offset for incomes below $37,500. The offset reduces by 5 cents per dollar from $37,500-$45,000, then 1.5 cents per dollar from $45,000-$66,667, eliminating at $66,667.

What happened to the Low and Middle Income Tax Offset (LMITO)?

LMITO was a temporary COVID measure providing up to $1,500 offset, available through 2021-22. It was not extended and does not apply from 2022-23 onwards. Stage 3 cuts provide permanent structural relief instead.

How do tax offsets differ from deductions?

Tax deductions reduce taxable income (worth your marginal rate). Tax offsets (credits) directly reduce the tax payable dollar-for-dollar, regardless of your marginal rate. Offsets are generally more valuable for lower-income taxpayers.

What is the tax-free threshold for residents?

$18,200 effective tax-free threshold (including LITO). For non-residents of Australia, there is no tax-free threshold and income is taxed from the first dollar at 32.5%.

Australia Individual Income Tax Calculator 2024-25

Calculate Australian individual income tax. Brackets 2024-25: 0% to $18,200, 19% to $45,000, 32.5% to $135,000, 37% to $190,000, 45% above. Stage 3 tax cuts effective July 2024. Includes low income offset.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate Australian individual income tax. Brackets 2024-25: 0% to $18,200, 19% to $45,000, 32.5% to $135,000, 37% to $190,000, 45% above. Stage 3 tax cuts effective July 2024. Includes low income offset. Use the australia income tax 2024-25 result to inform your calculation.

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Frequently Asked Questions

What are the 2024-25 Australian income tax rates?

What is the Low Income Tax Offset (LITO)?

What happened to the Low and Middle Income Tax Offset (LMITO)?

How do tax offsets differ from deductions?

What is the tax-free threshold for residents?