Australia vs United States: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $74,136 in Australia and $79,180 in United States — $5,044 more per year in United States ($420 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 | United States | Difference |
|---|---|---|---|
| $40,000 | $33,778 (15.6% tax) | $34,320 (14.2% tax) | -$542 |
| $60,000 | $47,378 (21.0% tax) | $50,390 (16.0% tax) | -$3,012 |
| $75,000 | $57,578 (23.2% tax) | $61,593 (17.9% tax) | -$4,014 |
| $100,000 | $74,136 (25.9% tax) | $79,180 (20.8% tax) | -$5,044 |
| $150,000 | $103,183 (31.2% tax) | $113,791 (24.1% tax) | -$10,608 |
| $250,000 | $156,183 (37.5% tax) | $183,182 (26.7% tax) | -$26,999 |
- Australia total tax rate
- United States total tax rate
Where the money goes at $100,000
- Australia
- United States
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 United States
Salary needed to keep the same take-home
If you move between Australia and United States, 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 United States needs | Difference |
|---|---|---|---|
| $50,000 | $40,578 | $47,789 | −$2,211 (-4.4%) |
| $75,000 | $57,578 | $69,294 | −$5,706 (-7.6%) |
| $100,000 | $74,136 | $92,829 | −$7,171 (-7.2%) |
| $150,000 | $103,183 | $134,480 | −$15,520 (-10.3%) |
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 | United States |
|---|---|---|
| $40,000 | 32.0% | 19.7% |
| $75,000 | 32.0% | 29.6% |
| $100,000 | 39.0% | 29.6% |
| $150,000 | 47.0% | 31.6% |
| $250,000 | 47.0% | 34.4% |
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.
United States
- 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 | United States | |
|---|---|---|
| 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) |
Australia vs every US state
The figures above use federal tax only, which is what you pay in a state with no income tax. Add state and local income tax and the answer changes: on $75,000, 47 of 51 states leave more take-home pay than Australia ($57,578), and 4 leave less.
| State | Take-home on $75k | vs Australia | Take-home on $150k | vs Australia |
|---|---|---|---|---|
| Florida | $61,593 | +$4,014 | $113,791 | +$10,608 |
| Nevada | $61,593 | +$4,014 | $113,791 | +$10,608 |
| New Hampshire | $61,593 | +$4,014 | $113,791 | +$10,608 |
| South Dakota | $61,593 | +$4,014 | $113,791 | +$10,608 |
| Tennessee | $61,593 | +$4,014 | $113,791 | +$10,608 |
| Texas | $61,593 | +$4,014 | $113,791 | +$10,608 |
| Wyoming | $61,593 | +$4,014 | $113,791 | +$10,608 |
| North Dakota | $61,411 | +$3,832 | $112,147 | +$8,964 |
| Alaska | $61,322 | +$3,743 | $113,520 | +$10,337 |
| Washington | $60,552 | +$2,974 | $111,711 | +$8,528 |
| Arizona | $60,111 | +$2,533 | $110,435 | +$7,252 |
| Louisiana | $59,729 | +$2,151 | $109,677 | +$6,494 |
| South Carolina | $59,433 | +$1,854 | $107,724 | +$4,541 |
| Mississippi | $59,325 | +$1,746 | $108,523 | +$5,340 |
| Iowa | $59,252 | +$1,674 | $108,458 | +$5,275 |
| New Mexico | $59,233 | +$1,655 | $107,772 | +$4,589 |
| Utah | $59,221 | +$1,643 | $108,082 | +$4,899 |
| Arkansas | $59,213 | +$1,635 | $108,486 | +$5,303 |
| Vermont | $59,153 | +$1,575 | $106,261 | +$3,078 |
| North Carolina | $59,109 | +$1,531 | $108,315 | +$5,132 |
| Nebraska | $59,060 | +$1,481 | $107,846 | +$4,663 |
| West Virginia | $59,047 | +$1,468 | $107,810 | +$4,627 |
| Missouri | $59,005 | +$1,427 | $107,678 | +$4,496 |
| Wisconsin | $58,960 | +$1,382 | $107,183 | +$4,000 |
| Ohio | $58,806 | +$1,227 | $107,442 | +$4,259 |
| Oklahoma | $58,763 | +$1,185 | $107,587 | +$4,404 |
| Idaho | $58,726 | +$1,148 | $106,949 | +$3,766 |
| Montana | $58,716 | +$1,138 | $106,677 | +$3,494 |
| Colorado | $58,671 | +$1,093 | $107,239 | +$4,057 |
| Michigan | $58,656 | +$1,078 | $107,667 | +$4,484 |
| Georgia | $58,599 | +$1,020 | $107,055 | +$3,872 |
| Rhode Island | $58,572 | +$994 | $107,168 | +$3,985 |
| New Jersey | $58,491 | +$913 | $105,606 | +$2,423 |
| Pennsylvania | $58,488 | +$909 | $107,581 | +$4,398 |
| Kansas | $58,207 | +$629 | $106,221 | +$3,038 |
| Alabama | $58,108 | +$529 | $106,556 | +$3,373 |
| Virginia | $58,094 | +$516 | $105,980 | +$2,797 |
| District of Columbia | $58,093 | +$514 | $103,916 | +$733 |
| Illinois | $58,025 | +$447 | $106,511 | +$3,328 |
| Indiana | $57,962 | +$384 | $106,501 | +$3,318 |
| California | $57,952 | +$374 | $102,280 | −$903 |
| Connecticut | $57,843 | +$264 | $105,291 | +$2,108 |
| Maine | $57,833 | +$255 | $104,337 | +$1,154 |
| New York | $57,784 | +$206 | $105,538 | +$2,355 |
| Massachusetts | $57,718 | +$139 | $105,821 | +$2,638 |
| Minnesota | $57,686 | +$108 | $104,189 | +$1,006 |
| Delaware | $57,684 | +$105 | $104,632 | +$1,449 |
| Kentucky | $57,435 | −$143 | $105,359 | +$2,176 |
| Hawaii | $57,048 | −$531 | $103,473 | +$290 |
| Maryland | $55,994 | −$1,585 | $102,075 | −$1,108 |
| Oregon | $55,338 | −$2,240 | $100,195 | −$2,988 |
How the two tax systems differ
| Australia | United States | |
|---|---|---|
| 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 United States better for taxes?
At $100,000, United States leaves you $5,044 more per year after income and payroll taxes. The gap widens at higher incomes ($26,999 at $250,000).
How much is $60,000 after tax in Australia and United States?
$47,378 in Australia and $50,390 in United States.
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
- 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