# Quickly calculate your personal income tax by entering your gross income for the financial year

## Depending on which tax bracket you fall into, you will owe a different amount.

Working out your taxable gross income can be complicated because not all earnings count towards income in the same way. See how it works with this case study.

#### Roger does his taxes

Roger was doing his taxes for 2017. His first step was to work out his gross income from all taxable sources. In his case, this was:

IncomeAmount earned (AUD)Taxable amount
Gross salary\$80,000\$80,000
Rental income in Australia\$10,000\$10,000
Interest earned from an Australian savings account\$400\$400
Foreign investment dividends, with a \$1,000 total profit\$5,000\$1,000. Capital gains or losses
Sale of an investment property at a \$10,000 loss\$100,000\$90,000. Capital gains or losses
Total\$195,400. Gross income\$181,400. Net income.
Deductions
Charitable donations\$1,000-\$1,000
Interest and repairs on investment property\$2,000-\$2,000
After deductions total\$193,400\$178,400

The amount Roger owes in tax is calculated based on his net income and tax bracket. Looking at a table of taxable income thresholds, he was able to see how his charitable donations and other deductions pushed him into a lower tax bracket.

• With a net income of \$181,400, Roger would owe \$54,232 in tax, plus another 45c for every dollar over \$180,001.
• After applying deductions and considering taxable income, Roger’s net earnings were \$178,400, which means he owes \$19,822, plus 37c for every dollar over \$87,000.

### Tax thresholds in Australia

Taxable incomeTax calculated at
Less than \$18,200None
\$18,201–\$37,00019c per \$1 > \$18,200
\$37,001–\$87,00032.5c per \$1 > \$37,000 plus \$3,572
\$87,001–\$180,00037c per \$1 > \$87,000 plus \$19,822
More than \$180,00145c per \$1 > \$180,000 plus \$54,232

### Andrew Munro

Andrew writes for finder.com, comparing products, writing guides and looking for new ways to help people make smart decisions. He's a fan of insurance, business news and cryptocurrency.