Work out your seniors and pensioners tax offset and the income tax left after it and the low income tax offset.
Key facts
- The seniors and pensioners tax offset (SAPTO) is up to $2,230 for a single person and $1,602 for each member of a couple (2025–26 ATO figures).
- It reduces by 12.5 cents for each dollar of rebate income over $34,919 (single) or $30,994 (each member of a couple), and ends at $52,759 and $43,810.
- You need to be eligible for an Australian Government pension or allowance, such as the Age Pension (age 67), even if you don't get it because of the income or assets test.
- With SAPTO and LITO a single senior pays no income tax on taxable income up to about $36,453 at 2026–27 rates.
- If one partner doesn't use all their SAPTO, the unused part may transfer to the other.
SAPTO thresholds (2025–26)
| Situation | Maximum offset | Reduces above | Ends at |
|---|---|---|---|
| Single | $2,230 | $34,919 | $52,759 |
| Member of a couple living together (each) | $1,602 | $30,994 | $43,810 |
| Member of a couple separated by illness (each) | $2,040 | $33,732 | $50,052 |
SAPTO and tax by income
| Taxable income | SAPTO, single | Tax, single | SAPTO, couple (each) | Tax, couple (each) |
|---|---|---|---|---|
| $30,000 | $2,230.00 | $0.00 | $1,602.00 | $0.00 |
| $35,000 | $2,219.00 | $0.00 | $1,101.00 | $719.00 |
| $40,000 | $1,594.00 | $1,101.00 | $476.00 | $2,219.00 |
| $45,000 | $969.00 | $2,726.00 | $0.00 | $3,695.00 |
| $50,000 | $344.00 | $4,926.00 | $0.00 | $5,270.00 |
| $55,000 | $0.00 | $6,845.00 | $0.00 | $6,845.00 |
Income tax after SAPTO and LITO at 2026–27 rates, rebate income equal to taxable income, before the Medicare levy. SAPTO thresholds are the ATO's latest published (2025–26).
Common questions
How much is the seniors and pensioners tax offset?
Up to $2,230 a year for a single person, $1,602 for each member of a couple and $2,040 for each member of a couple separated by illness.
How much can a pensioner earn tax-free?
With SAPTO and the low income tax offset, a single senior pays no income tax on taxable income up to about $36,453, and each member of a couple up to about $32,386, at 2026–27 rates. The Medicare levy has separate thresholds.
Who can get SAPTO?
People eligible for an Australian Government pension or allowance, such as the Age Pension from 67 or a veterans' service pension, whose rebate income is under the cut-out threshold. You don't need to be receiving the pension if you'd qualify apart from the income or assets test.
Do I need to claim SAPTO?
It's worked out when you lodge your tax return; you answer the seniors and pensioners questions in it.
See also Age Pension rates, the Age Pension calculator and the low income tax offset.
Source: ATO, Seniors and pensioners tax offset. Checked 22 October 2026.