Australia vs California: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $74,136 in Australia and $72,969 in California — $1,166 more per year in Australia ($97 a month). Single filer, standard deductions.
Updated 2026-10-03 · International figures converted at the exchange rate noted in sources; salaries entered in US dollars. Excludes retirement, health and cost-of-living differences.
Take-home pay at every salary
| Gross salary | Australia | California | Difference |
|---|---|---|---|
| $40,000 | $33,778 (15.6% tax) | $33,252 (16.9% tax) | $526 |
| $60,000 | $47,378 (21.0% tax) | $48,037 (19.9% tax) | -$659 |
| $75,000 | $57,578 (23.2% tax) | $57,952 (22.7% tax) | -$374 |
| $100,000 | $74,136 (25.9% tax) | $72,969 (27.0% tax) | $1,166 |
| $150,000 | $103,183 (31.2% tax) | $102,280 (31.8% tax) | $903 |
| $250,000 | $156,183 (37.5% tax) | $161,071 (35.6% tax) | -$4,888 |
- Australia total tax rate
- California total tax rate
Where the money goes at $100,000
- Australia
- California
About taxes in Australia
- For 2026-27 (1 July 2026 to 30 June 2027) Australian residents pay nil on the first $18,200, 15% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000 and 45% above.
- The rate on income between $18,201 and $45,000 fell from 16% to 15% on 1 July 2026 and is scheduled to fall to 14% from 1 July 2027.
- A resident earning $190,000 pays $51,370 in income tax before the Medicare levy and offsets.
- The Medicare levy is 2% of taxable income; low-income earners get a reduction (for 2025-26, singles below $35,013), which is not modelled here.
- The Medicare levy surcharge (1% to 1.5% for higher earners without private hospital cover), tax offsets and HELP repayments are not modelled.
About taxes in California
- California has the highest top income tax rate in the US: 13.3%. That is the 12.3% top bracket plus the 1% Mental Health Services Tax on taxable income over $1 million.
- FTB indexed the 2026 brackets for 3.4% inflation (California CPI, June 2025 to June 2026). For single filers the 9.3% bracket now starts at $75,197.
- The 2026 standard deduction is $5,900 for single filers and $11,800 for joint filers and heads of household, up from $5,706 and $11,412.
- Exemptions are tax credits, not deductions: $158 per person ($316 for joint filers) and $491 per dependent in 2026.
- The SDI withholding rate is 1.3% in 2026. Since 2024 SDI has no wage cap, so it applies to every dollar of wages.
Salary needed to keep the same take-home
If you move between Australia and California, this is the gross salary (in US dollars) that leaves the same take-home pay after income tax and employee contributions.
| Salary in Australia | Take-home | Same take-home in California needs | Difference |
|---|---|---|---|
| $50,000 | $40,578 | $49,790 | −$210 (-0.4%) |
| $75,000 | $57,578 | $74,387 | −$613 (-0.8%) |
| $100,000 | $74,136 | $101,952 | +$1,952 (2.0%) |
| $150,000 | $103,183 | $151,563 | +$1,563 (1.0%) |
Tax on your next $1,000
The marginal rate — the share of a raise that goes to tax and contributions — often matters more than the average rate.
| Salary | Australia | California |
|---|---|---|
| $40,000 | 32.0% | 25.0% |
| $75,000 | 32.0% | 38.9% |
| $100,000 | 39.0% | 40.3% |
| $150,000 | 47.0% | 42.3% |
| $250,000 | 47.0% | 45.0% |
What employers pay on top
Employer payroll and social contributions are not deducted from your pay, but they affect what employers can afford to offer.
Australia
- Superannuation guarantee: 12.00% — 12% of qualifying earnings in 2026-27, paid on each payday under Payday Super from 1 July 2026, up to a maximum contribution base of $270,830 a year.
California (US)
- Employer Social Security (OASDI): 6.20% — Matches the employee: 6.2% on wages up to $184,500 in 2026.
- Employer Medicare: 1.45% — Matches the employee: 1.45% on all wages with no cap (the 0.9% Additional Medicare Tax has no employer match).
- FUTA (federal unemployment): 0.60% — 6.0% on the first $7,000 of each employee’s wages, normally 0.6% after the 5.4% credit for state unemployment tax; states add their own unemployment tax.
Typical pay and minimum wage
| Australia | California (US) | |
|---|---|---|
| Median earnings | 1,425 AUD ($989) — median weekly earnings in main job, all employees (ABS Employee Earnings), August 2025 | 1,251 USD ($1,251) — median usual weekly earnings, full-time wage and salary workers (BLS), Q2 2026 |
| Minimum wage | 26.44 AUD/hour ($18.35), from 1 July 2026 (National Minimum Wage) | 7.25 USD/hour ($7.25), from 24 July 2009 (federal; many states and cities set higher rates) |
US figures are national; many states and cities set a higher minimum wage.
Australia vs California city by city
Take-home pay varies across California with local taxes, and living costs vary even more. On $75,000 you keep $57,578 in Australia. California also deducts State Disability Insurance (SDI, incl. Paid Family Leave) (1.30%).
| City | Take-home on $75k | vs Australia | Sales tax | Median rent / month | Price level (US = 100) | Take-home in national prices |
|---|---|---|---|---|---|---|
| Los Angeles | $57,952 | +$374 | 10.25% | $1,958 | 113.6 | $51,030 |
| San Francisco | $57,952 | +$374 | 8.63% | $2,448 | 115.6 | $50,126 |
| San Diego | $57,952 | +$374 | 7.75% | $2,414 | 111.9 | $51,795 |
| San Jose | $57,952 | +$374 | 10.00% | $2,674 | 110.4 | $52,482 |
- California has the highest top income tax rate in the US: 13.3%. That is the 12.3% top bracket plus the 1% Mental Health Services Tax on taxable income over $1 million.
- FTB indexed the 2026 brackets for 3.4% inflation (California CPI, June 2025 to June 2026). For single filers the 9.3% bracket now starts at $75,197.
- The 2026 standard deduction is $5,900 for single filers and $11,800 for joint filers and heads of household, up from $5,706 and $11,412.
- Exemptions are tax credits, not deductions: $158 per person ($316 for joint filers) and $491 per dependent in 2026.
How the two tax systems differ
| Australia | California (US) | |
|---|---|---|
| Tax year | 1 July 2026 – 30 June 2027 | 1 January – 31 December 2026 |
| Filing a tax return | Employees have PAYG tax withheld from each pay but most still lodge an annual tax return after 30 June. | Most workers file an annual Form 1040 even though tax is withheld from pay; filing is required once gross income passes the threshold (e.g. $15,750 for a single filer under 65 for 2025). |
| Consumption tax | GST 10%. A broad-based 10% tax; some items, such as basic food, are GST-free. | Sales tax (no federal VAT) 0%. There is no national VAT or GST; states and localities levy their own retail sales taxes, and five states have no statewide sales tax. |
| Retirement | Employers must pay the 12% superannuation guarantee into the employee’s super fund on top of wages; employees are not required to contribute but can add salary-sacrifice or personal contributions. | Social Security is the mandatory public pension, funded by 6.2% from both employee and employer; workplace plans such as a 401(k) are voluntary, with employee deferrals limited to $24,500 in 2026. |
| Healthcare | Medicare is funded from general revenue and the 2% Medicare levy on taxable income; higher earners without private hospital cover may also pay the Medicare levy surcharge of 1% to 1.5%. | There is no universal public insurance for working-age adults; most get coverage through an employer plan with premiums shared with the employer, while the 1.45% Medicare tax (matched by employers) funds hospital insurance for people 65 and over. |
| Capital gains | Net capital gains are added to taxable income; residents who hold an asset for at least 12 months reduce the gain by the 50% CGT discount. | Long-term gains (assets held over a year) are taxed at 0%, 15% or 20% depending on taxable income, plus 3.8% net investment income tax for higher earners; short-term gains are taxed as ordinary income. |
Frequently asked questions
Is Australia or California better for taxes?
At $100,000, Australia leaves you $1,166 more per year after income and payroll taxes. The gap widens at higher incomes ($4,888 at $250,000).
How much is $60,000 after tax in Australia and California?
$47,378 in Australia and $48,037 in California.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- ATO – Tax rates: Australian residents
- Budget 2026-27 – Cost of living
- ATO – What is the Medicare levy?
- ATO – Medicare levy reduction for low-income earners
- European Central Bank – euro foreign exchange reference rates
- FTB – Tax News: 2026 Indexing (tax rate schedules, standard deduction, exemption credits)
- EDD – Contribution Rates, Withholding Schedules (2026 SDI rate)
- EDD – 2026 Withholding Schedules, Method B
- Tax Foundation – State and Local Sales Tax Rates, Midyear 2026
- ATO – How GST works
- ATO – Super guarantee rates and maximum contribution base
- ATO – CGT discount
- ATO – How to work out if you need to lodge a tax return
- Fair Work Ombudsman – Minimum wages
- ABS – Employee Earnings, August 2025
- IRS Topic No. 751, Social Security and Medicare withholding rates
- IRS Topic No. 759, Form 940 – Federal Unemployment (FUTA) Tax Return
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- IRS Topic No. 559, Net Investment Income Tax
- IRS – Who should file
- U.S. Department of Labor – Minimum wage
- BLS – Usual Weekly Earnings of Wage and Salary Workers, Second Quarter 2026
- Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments