Low Middle Income Tax Offset Calculator
The low and middle income tax offset (LMITO) is a tax offset designed to reduce the tax burden on low and middle-income earners. Understanding and utilizing this calculator can help you maximize your tax refund.
- Enter your annual taxable income.
- Select the number of dependents you have.
- Click ‘Calculate’ to see your estimated LMITO and tax refund.
The LMITO is calculated as follows:
LMITO = (Income – Tax Free Threshold) * Tax Rate
Where:
- Income is your taxable income.
- Tax Free Threshold is $18,200 for the 2021-22 financial year.
- Tax Rate is 0% for the first $18,200, 19% for the next $45,000, and 32.5% for the next $90,000.
Real-World Examples
| Income | Dependents | LMITO | Tax Refund |
|---|---|---|---|
| $35,000 | 1 | $450 | $900 |
| $50,000 | 2 | $1,125 | $2,250 |
| $70,000 | 0 | $1,800 | $3,600 |
Data & Statistics
| Income | LMITO | Tax Payable |
|---|---|---|
| $35,000 | $450 | $5,100 |
| $50,000 | $1,125 | $8,500 |
| $70,000 | $1,800 | $15,700 |
Expert Tips
- Ensure you lodge your tax return to claim your LMITO.
- Consider salary sacrificing to reduce your taxable income.
- Review your tax situation annually to maximize your refund.
What is the low and middle income tax offset?
The low and middle income tax offset (LMITO) is a tax offset designed to reduce the tax burden on low and middle-income earners.
How much is the LMITO for the 2021-22 financial year?
The LMITO for the 2021-22 financial year is up to $1,500 for individuals and up to $3,000 for couples.
Australian Taxation Office: Low and middle income tax offset