How Much Tax Do I Pay on $120,000 Salary in Australia? (2025–26)

If you're asking how much tax do I pay on $120,000, here's the short answer: for the 2025–26 financial year, on a $120,000 taxable income you pay about $26,788 in income tax and $2,400 in Medicare levy (2%), so total tax is around $29,188. Your take-home pay before HECS is about $90,812 per year. Australian tax is progressive, so only the amount in each bracket is taxed at that rate. Use our free pay calculator with HECS repayment for any salary.

Income tax on $120,000 (2025–26)

The tax-free threshold is $18,200. From $18,201 to $45,000 you pay 16%; from $45,001 to $135,000 you pay 30%. So for $120,000: tax on $18,201–$45,000 = $4,288; tax on $45,001–$120,000 = $22,500. That's about $26,788 in income tax. You don't pay 30% on your whole salary—only the portion in that bracket.

Medicare levy and surcharge

The Medicare levy is 2% of taxable income: on $120,000 that's $2,400. At $120,000 you're above the Medicare Levy Surcharge threshold, so if you don't have an adequate level of private patient hospital cover for the full year, you may pay an extra 1–1.5% surcharge. See our post on what is the Medicare Levy Surcharge and do I pay it.

Take-home pay on $120,000 (before HECS)

$120,000 minus $26,788 income tax minus $2,400 Medicare = about $90,812 take-home per year, or roughly $1,746 per week. If you have a HECS/HELP debt, repayments are withheld on top of that. Use our pay calculator with HECS repayment and select "Yes" for HECS to see your exact net pay.

Summary: how much tax on $120,000?

On a $120,000 salary in 2025–26 you pay about $26,788 income tax and $2,400 Medicare levy (total tax about $29,188). Take-home is about $90,812 per year before HECS. For other salaries use our free pay calculator or tax refund calculator.