Tax Refund Estimator 2025-26: Calculate Your Refund or Debt
This calculator helps Australian taxpayers estimate their tax refund or debt for the 2025-26 financial year. It uses the Stage 3 tax rates, includes the Medicare Levy, and accounts for HECS-HELP repayments if applicable. By entering your gross income, tax already paid, and total deductions, you can get a quick estimate of your year-end tax position.
FAQ
Q1: How do Stage 3 Tax Cuts affect my 2025-26 refund?
From July 1, 2024, the tax rates have been lowered. For example, the 32.5% rate dropped to 30%, and the threshold increased. This means you likely have more take-home pay, but it also changes how your final refund is calculated at the end of the year. Lower tax rates may reduce your total tax payable, potentially increasing your refund or decreasing any debt.
Q2: What is the low-income tax offset (LITO) for FY 2025-26?
The maximum LITO remains at $700. It gradually reduces once your taxable income exceeds $37,500 and completely phases out at $66,667. Note: This estimator does not automatically apply LITO as it is typically applied by the ATO when processing your tax return. For a more accurate estimate, you may want to account for LITO manually if you are eligible.
Q3: Can I claim working-from-home (WFH) expenses in my refund estimate?
Yes, you can use either the Fixed Rate Method (67 cents per hour) or the Actual Cost Method. Our estimator allows you to add these to your 'Total Deductions' field for a more accurate result. Ensure you keep records to substantiate your claims.
Important: This calculator provides estimates only. Actual tax outcomes depend on many factors including offsets, private health insurance, and other individual circumstances. For official advice, consult a tax professional or the ATO.