How Is Tax Calculated? How Can I Calculate My Tax?
You’ve probably seen a chart with the different tax thresholds on them before and rolled your eyes. While this information is great, it can seem a little bit over the top. After all all I want to know is how much tax I need to pay between now and the end of the financial year.
Not knowing where you stand from a tax perspective can be very stressful. While you can always book an appointment at our tax accountant’s office you live near around the Dee Why or Brookvale area, and get one of our friendly team to show you, for ultra convenience, we will outline how you can calculate your tax below.
There are two ways to calculate your tax:
- The Easy Way:
The easy way that we all use here that has never let us down is the Pay Calculator. Whilst there are many other calculators out there and on the ATO, we have found this calculator to be the most effective and quickest way to work out the end of year tax liability.
Step 1: Go to https://www.paycalculator.com.au/
Step 2: Enter in your taxable income.
Step 3: Enter in your tax year.
Step 4: Select the options that apply to your situation.
This is the way we would recommend, see the screenshot below for a visual representation explaining how to figure out your tax.
- The Hard Way
While we don’t recommend anyone actually do this, for your information we have included the tax thresholds below for calculating your tax return for the FY18-19 financial years.
Don’t forget to add the medicare levy on top!
The following rates for 2018-19 apply from 1 July 2018:
|Tax income||Tax on this income|
|0 – $18,200||Nil|
|$18,201 – $37,000||19c for each $1 over $18,200|
|$37,001 – $90,000||$3,572 plus 32.5c for each $1 over $37,000|
|$90,001 – $180,000||$20,797 plus 37c for each $1 over $90,000|
|$180,001 and over||$54,097 plus 45c for each $1 over $180,000|
Find out more here.
Note: The above rates do not include the Medicare levy of 2%.