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Australian Tax Brackets and Rates 2026–27

Resident rates for 2026–27: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. The first $18,200 is the tax-free threshold. Tables for 2025–26 and non-residents follow.

Updated 2026-10-03 · ATO and official government rates

Income tax + Medicare levy$19,32021.5% average rate · 32% marginal · 2026–27
BracketRateTax
$0 – $18,2000%$0
$18,200 – $45,00015%$4,020
$45,000 – $135,00030%$13,500
Medicare levy2%$1,800
Total$19,320
Kept: $70,680 (78.5%)Income tax: $17,520 (19.5%)Medicare levy: $1,800 (2.0%)
  • Kept $70,680 78.5%
  • Income tax $17,520 19.5%
  • Medicare levy $1,800 2.0%

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Resident tax rates 2026–27

Taxable incomeTax on this income
$0 – $18,200Nil
$18,201 – $45,00015% over $18,200
$45,001 – $135,00030% over $45,000
$135,001 – $190,00037% over $135,000
$190,001 – and over45% over $190,000

Resident tax rates 2025–26

Taxable incomeTax on this income
$0 – $18,200Nil
$18,201 – $45,00016% over $18,200
$45,001 – $135,00030% over $45,000
$135,001 – $190,00037% over $135,000
$190,001 – and over45% over $190,000

Foreign resident tax rates 2026–27

Taxable income overRate
$030%
$135,00037%
$190,00045%

Working holiday maker tax rates 2026–27

Taxable income overRate
$015%
$45,00030%
$135,00037%
$190,00045%

Tax at common incomes (2026–27, resident)

Taxable incomeIncome taxMedicare levyAverage rateMarginal rate
$30,000$1,070$1994.2%25%
$45,000$3,695$90010.2%34%
$60,000$8,420$1,20016.0%34%
$80,000$14,520$1,60020.2%32%
$100,000$20,520$2,00022.5%32%
$135,000$31,020$2,70025.0%39%
$150,000$36,570$3,00026.4%39%
$190,000$51,370$3,80029.0%47%
$250,000$78,370$5,00033.3%47%

Related

How marginal tax rates work in Australia

A marginal tax rate applies only to the dollars inside its bracket, never to your whole income. Crossing a threshold cannot leave you worse off. For example, moving from $133,000 to $137,000 adds $1,420 of tax and Medicare levy on the extra $4,000. That is 32% on the first half and 39% on the second half. Everything below $135,000 is taxed exactly as before.

Your average rate is always lower than your marginal rate. At $100,000, the marginal rate including the levy is 32%, but total tax and levy come to 22.5% of income.

The highest tax bracket in Australia

The top rate of 45% starts at $190,001 of taxable income. With the Medicare levy, the top marginal rate is 47%. If you have no private hospital cover, the 1.5% surcharge can push it higher. The 45% rate is not new: the ATO's tables show it has applied since 2006–07. The threshold was $180,000 from 2008–09 until 2023–24, and it moved to $190,000 with the stage 3 changes.

Stage 3 tax cuts: what changed from 1 July 2024

The stage 3 cuts, legislated as the cost-of-living tax cuts (the legislation received Royal Assent on 5 March 2024), rebuilt the brackets from 1 July 2024. Treasury lists four changes. The 19% rate fell to 16%. The 32.5% rate fell to 30%. The 37% threshold rose from $120,000 to $135,000. The 45% threshold rose from $180,000 to $190,000. The table compares tax at the old 2023–24 rates with 2025–26 and 2026–27, before offsets and the Medicare levy.

Taxable income2023–24 tax2025–26 tax2026–27 taxSaving vs 2023–24
$40,000$4,142$3,488$3,270$872
$60,000$9,967$8,788$8,520$1,447
$80,000$16,467$14,788$14,520$1,947
$100,000$22,967$20,788$20,520$2,447
$150,000$40,567$36,838$36,570$3,997
$200,000$60,667$56,138$55,870$4,797

The 2026 and 2027 tax cuts

The 2025–26 Budget added two more cuts to the lowest taxed band. The Treasury Laws Amendment (More Cost of Living Relief) Act 2025 amends the Income Tax Rates Act 1986. It cuts the $18,201–$45,000 rate to 15% for 2026–27, and to 14% for 2027–28 and later years. The Act received assent on 27 March 2025.

For anyone earning $45,000 or more, the 2026–27 cut is worth $268 a year. The 2027–28 cut adds another $268, so the saving compared with 2025–26 will be $536. The other thresholds and rates stay the same. The ATO describes the cuts as giving back bracket creep, the extra tax people pay as wage growth pushes more of their income into higher brackets.

How the lowest tax bracket has changed

The tax-free threshold was $6,000 until 2011–12 and rose to $18,200 from 2012–13. It has not changed since. The rate on the first taxed band has moved more often:

Income yearTax-free thresholdFirst rateTop rate starts above
2011–12$6,00015%$180,000
2012–13 to 2023–24$18,20019%$180,000
2024–25 and 2025–26$18,20016%$190,000
2026–27$18,20015%$190,000
2027–28 (legislated)$18,20014%$190,000

Frequently asked questions

What is the highest tax bracket in Australia?

45% on taxable income over $190,000, plus the 2% Medicare levy — a top marginal rate of 47%.

What tax brackets apply to the 2025 and 2026 tax returns?

Both use the same scale, because nothing changed between 2024–25 and 2025–26. The return for 1 July 2025 to 30 June 2026 (2025–26) uses nil to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy.

Will the tax brackets change in 2027?

Yes. From 1 July 2027 the 15% rate on income between $18,200 and $45,000 falls to 14%. This is already law. No other bracket changes are legislated.

Is the Medicare levy part of the tax brackets?

No. The ATO's rate tables exclude it. The 2% Medicare levy is charged separately on your whole taxable income and is reduced for low incomes.

Does earning more ever reduce my take-home pay?

Not through the tax brackets, because a higher rate applies only to income above the threshold. Some separate rules do apply to your whole income, such as the Medicare levy surcharge tiers and the top HELP repayment tier, so an extra dollar can occasionally cost more than a dollar.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.

  1. ATO: Tax rates – Australian resident (resident tax rates 2026–27 back to 1983–84)
  2. ATO: Tax rates – foreign resident (Foreign resident tax rates 2025–26)
  3. ATO: Tax rates – working holiday makers (Working holiday maker tax rates 2025–26)
  4. ATO: Medicare levy reduction for low-income earners (Table: Medicare levy thresholds for a single individual, 2025–26)
  5. ATO: Medicare levy reduction – family income (family taxable income thresholds 2025–26, +$4,338 per dependent child)
  6. ATO: Medicare levy surcharge income, thresholds and rates (MLS income thresholds and rates for 2026–27 and 2025–26)
  7. ATO: Low income tax offset ($700 max; −5c per $1 over $37,500; −1.5c per $1 over $45,000; nil from $66,667)
  8. ATO: Seniors and pensioners tax offset (SAPTO rates and rebate income thresholds for 2025–26; 12.5c per $1 reduction)
  9. ATO: Study and training loan repayment thresholds and rates (Table 1: 2026–27, Table 2: 2025–26)
  10. ATO: Schedule 1 (NAT 1004) – Using a formula (x = whole dollars + 99c; round to nearest dollar, 50c up)
  11. ATO: Personal income tax – new tax cuts for every Australian taxpayer (16% to 15% from 1 July 2026, 14% from 1 July 2027)
  12. ATO: Schedule 15 – Tax table for working holiday makers (Table A: rates for 2026–27, payments from 1 July 2026)
  13. ATO: Schedule 1 – Statement of formulas for calculating amounts to be withheld (NAT 1004), payments from 1 July 2026 – weekly coefficients
  14. ATO: Schedule 1 (NAT 1004) – Withholding amounts sample data, weekly (from 1 July 2026)
  15. ATO: Schedule 8 – Statement of formulas for calculating study and training support loans components (NAT 3539), payments from 1 July 2026
  16. ATO: Key super rates and thresholds – Contributions caps (Table 1.1 concessional, Table 4 non-concessional)
  17. ATO: Understanding concessional and non-concessional contributions (concessional contributions taxed in the fund at 15%)
  18. ATO: Key super rates and thresholds – Division 293 tax (Table 7: $250,000 threshold, 15% rate)
  19. ATO: Key super rates and thresholds – Super guarantee (Table 21 SG %, Tables 23–24 maximum contribution base)
  20. ATO: Key super rates and thresholds – Government contributions (Table 25 co-contribution thresholds; LISTO)
  21. ATO: Low income super tax offset (15% of concessional contributions, max $500, income $37,000 or less)
  22. ATO: Key super rates and thresholds – Transfer balance cap (Table 26)
  23. ATO: Key super rates and thresholds – Payments from super (Table 12 preservation age)
  24. ATO: Key super rates and thresholds – Employment termination payments (Table 17 ETP cap, Table 20 genuine redundancy limits)
  25. ATO: How ETP components are taxed (17%/32% incl. Medicare; $180,000 whole-of-income cap; 45% + 2% above cap)
  26. ATO: How GST works (10% rate)
  27. ATO: Registering for GST ($75,000 / $150,000 non-profit; taxi or limousine travel incl. ride-sourcing regardless of turnover)
  28. ATO: CGT discount (50% individuals and trusts, 33.33% complying super funds, 12-month ownership)
  29. ATO: Tax reform – Reforming negative gearing and capital gains tax (applies from 1 July 2027)
  30. ATO: Changes to company tax rates (25% base rate entity, $50m aggregated turnover, 2021–22 and future years)
  31. ATO: Company tax rates 2025–26
  32. ATO: Instant asset write-off for eligible businesses (Table 1: $20,000, turnover under $10 million)
  33. ATO Small business newsroom: $20,000 instant asset write-off here to stay (permanent from 1 July 2026)
  34. ATO: Small business income tax offset (16%, max $1,000, turnover under $5 million, 2021–22 onwards)
  35. Fair Work Ombudsman: Minimum wage increase starts today (1 July 2025 – $948.00/week, $24.95/hour, casual $31.19)
  36. Fair Work Ombudsman: Minimum wage increase starts today (1 July 2026 – $1,004.90/week, $26.44/hour, casual $33.05)
  37. Fair Work Commission: Annual Wage Review 2026 ([2026] FWCFB 3500, announced 2 June 2026)
  38. Treasury: Cost-of-living tax cuts (from 1 July 2024)
  39. Parliament of Australia: Treasury Laws Amendment (More Cost of Living Relief) Bill 2025 (Act No. 28 of 2025, assent 27 March 2025)