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Income Tax Calculator - Average Rate of Tax

Income Tax rates in Australia have been falling almost every year for the last 15 years. The top marginal tax rate is now 46.5% including the medicare levy and this top tax bracket kicks in at $180,000.

Average Rate of Tax for the 2011 Financial Year

The average rate of tax for the 2011 for the average employee earning $70,000 per annum is 22%. This compares to 30% in 2001.

The average rate of tax for someone on $200,000 is 33% compared to 42% ten years ago, a saving of almost $18,000 per annum.

The average rate of tax is different to the marginal rate of tax. Accountants often talk in terms of the marginal rate of tax, being the rate of tax if you earned an additional $1 in income. The marginal rate of tax is important in determining the cost or benefit of a particular transaction.

Table of Average Tax Rates for 2011 Financial Year

2011 Income Tax Rates
Income Total Income Tax
(Inc. Medicare Levy at 1.5%)		 Average Rate of tax
10,000 - 0.00%
20,000 821 4.10%
30,000 2,550 8.50%
40,000 5,050 12.63%
50,000 8,600 17.20%
60,000 12,150 20.25%
70,000 15,600 22.29%
80,000 18,750 23.44%
90,000 22,600 25.11%
100,000 26,450 26.45%
110,000 30,300 27.55%
120,000 34,150 28.46%
130,000 38,000 29.23%
140,000 41,850 29.89%
150,000 45,700 30.47%
160,000 49,550 30.97%
170,000 53,400 31.41%
180,000 57,250 31.81%
190,000 61,900 32.58%
200,000 66,550 33.28%
210,000 71,200 33.90%
220,000 75,850 34.48%
230,000 80,500 35.00%
240,000 85,150 35.48%
250,000 89,800 35.92%

Note: Average Rate of Tax is Total Tax divided by Taxable Income.

You can use our quick and simple to use Income Tax Calculator to calculate your Australian income tax for any year between 2001 and 2011.