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What is Taxable Income?

Iit is important that you know and understand what Taxable Income is and what non-taxable income is.

Taxable Income, in simple terms

Your Gross Pay (that\'s your total salary before any deductions are made) is split into 2 elements, taxable Income and non-taxable income. Non-taxable income is the determined by calculating your personal allowances and circumstance tax free allowances. Subtract the non-taxable figure from your Gross Pay, the figure you have left is your taxable income.

What is Taxable Income used for?

Your Taxable income is used to calculate the amount of Income Tax due. The higher your taxable income, the greater the tax percentage so it is in your interest to keep your taxable income as low as possible, particularly as you receive pay rises and promotions.

You can calculate how Medicare can affect your tax payments and salary calculation here, simply select the advanced tax calculator and enter your Medicare details

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Contact us if you would like to expand on the Medicare information shown or share your personal experiences of Medicare. If you are a website owner, Independent Financial Advisor etc, we will provide a link back to your website in recognition of your support.

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