The second income tax bracket drops from 16% to 15% on 1 July 2026, and again to 14% from July 2027. The most anyone gets back in 2026-27 is $268 for the year – real money, just not book-a-holiday money. Enter your income below and see your actual take-home pay this year and next, and what the cut is worth to you per week, fortnight, month or year.
Where does $268 actually matter? If you are carrying a card balance, it is roughly a month of interest on a typical revolving debt – run the balance transfer calculator and point the tax cut at the debt instead. Debt-free? Check whether your annual fee still earns its keep with the card worth-it calculator, or bank the cut through one of the best cashback credit cards on spending you were doing anyway.
Rates used: published ATO 2025-26 resident brackets, the legislated 2026-27 second-bracket rate, the 2% Medicare levy with the single low-income phase-in ($28,011 threshold), and the Low Income Tax Offset. HELP repayments and salary sacrifice are not modelled. General information only, not tax advice.
