🇦🇺 Australia · FY 2025-26

Tax Refund Calculator

Compare your total tax withheld against your actual tax liability — including the Low Income Tax Offset, applied automatically where you're eligible — to see if you're due a refund.

Your Details

Check your income statement / payment summary.

Your Result

Enter your details and click "Calculate" to see if you're due a refund.

How Your Refund Is Actually Calculated

Your refund (or balance due) comes down to one comparison: how much tax you actually owe for the year, versus how much was already withheld from your pay through PAYG. This calculator also factors in the Low Income Tax Offset, since it directly reduces what you owe for most low-to-middle income earners.

The Low Income Tax Offset (LITO) — Now Included

LITO is a non-refundable offset the ATO applies automatically — worth up to $700 for taxable income up to $37,500, then phasing out in two stages until it disappears entirely at $66,667:

Taxable IncomeLITO Amount
Up to $37,500$700 (full offset)
$37,501 – $45,000$700 minus 5c per $1 over $37,500
$45,001 – $66,667$325 minus 1.5c per $1 over $45,000
Above $66,667$0

Combined with the $18,200 tax-free threshold, LITO effectively lets eligible workers earn up to about $22,575 before paying any income tax at all.

An Important Limit: LITO Can't Create a Refund on Its Own

LITO is non-refundable — it can reduce your tax liability down to zero, but it can't push your liability negative or generate cash beyond what you'd otherwise be owed. It also only offsets income tax, not the Medicare Levy — the two are calculated and applied separately.

Worked Example

ItemAmount
Taxable income$85,000
Income tax (before offsets)$16,288
LITO (income over $66,667 — nil)− $0
Medicare Levy (2%)+ $1,700
Total liability$17,988
Total withheld$21,000
Estimated refund≈ $3,012

Related Tools

Income Tax Rates →
Full FY 2025-26 bracket table
Take-Home Pay Calculator →
Including HECS-HELP under the new system
How to Lodge Online →
myTax step-by-step walkthrough

Frequently Asked Questions

What is the Low Income Tax Offset (LITO)?+
LITO is a non-refundable tax offset of up to $700 for Australian tax residents with taxable income up to $66,667. It's applied automatically by the ATO — you don't need to claim it. Combined with the tax-free threshold, it lets eligible workers earn up to about $22,575 before paying income tax.
Can LITO give me a bigger refund than I paid in tax?+
No. LITO is non-refundable, meaning it can only reduce your tax liability to zero — it can't create a negative liability or a cash payment beyond what you're otherwise owed.
Does LITO reduce the Medicare Levy too?+
No. LITO only offsets income tax, not the Medicare Levy. The two are calculated and applied separately, even though both appear on the same Notice of Assessment.
Why is my refund smaller than a friend's with the same salary?+
Refunds depend on far more than gross salary — total tax withheld throughout the year, deductions claimed, HECS-HELP debt, private health insurance status, and other offsets can all differ even between people earning identical salaries.
SIMPLIFIED

Doesn't include HECS-HELP repayments, SAPTO (seniors offset), or the Medicare Levy Surcharge. Lodge through myGov or a registered tax agent for your exact outcome.