Resident tax rates 2026–27
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $18,200 | 0% | Nil |
| $18,201 to $45,000 | 15% | 15% of income over $18,200 |
| $45,001 to $135,000 | 30% | $4,020 plus 30% of income over $45,000 |
| $135,001 to $190,000 | 37% | $31,020 plus 37% of income over $135,000 |
| Over $190,000 | 45% | $51,370 plus 45% of income over $190,000 |
The lowest rate fell from 16% to 15% on 1 July 2026. The first $18,200 is tax-free for residents: the tax-free threshold. Each rate applies only to the part of your income in that band.
Low income tax offset
Residents earning up to $37,500 get a $700 reduction in their tax. It falls by 5 cents for each dollar above that, to $325 at $45,000, then by 1.5 cents per dollar until it runs out at $66,667. With the offset, residents pay no income tax on roughly the first $22,866 they earn.
Medicare levy and surcharge
Most residents pay a Medicare levy of 2% of taxable income. Singles earning $28,011 or less pay none, and between that and about $35,013 the levy phases in at 10 cents per dollar. Read more in the Medicare levy explained.
If you don't have private hospital cover and earn over $105,000 as a single, you also pay the Medicare levy surcharge, a rate on your whole income:
| Income (singles) | Surcharge |
|---|---|
| Up to $105,000 | 0% |
| $105,001 to $123,000 | 1% |
| $123,001 to $164,000 | 1.25% |
| Over $164,000 | 1.5% |
Family thresholds are double the single ones, plus $1,500 for each child after the first.
HELP repayment thresholds
If you have a HELP or other study loan, you repay nothing on repayment income up to $69,528. Above that you repay 15 cents for each dollar over $69,528, rising to 17 cents above $129,717. From $186,050 you repay 10% of your whole repayment income. Salary-sacrificed super counts as repayment income.
Foreign residents and working holiday makers
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $135,000 | 30% | 30% of income |
| $135,001 to $190,000 | 37% | $40,500 plus 37% of income over $135,000 |
| Over $190,000 | 45% | $60,850 plus 45% of income over $190,000 |
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $45,000 | 15% | 15% of income |
| $45,001 to $135,000 | 30% | $6,750 plus 30% of income over $45,000 |
| $135,001 to $190,000 | 37% | $33,750 plus 37% of income over $135,000 |
| Over $190,000 | 45% | $54,100 plus 45% of income over $190,000 |
Foreign residents don't get the tax-free threshold, the low income tax offset or the Medicare levy.
Super and other 2026–27 changes
- Super guarantee: your employer pays 12% of your ordinary earnings into super, on top of your pay, on earnings up to $270,830 a year.
- Concessional contributions cap: $32,500 a year, including your employer's contributions and any salary sacrifice.
- Division 293: an extra 15% tax on concessional contributions when your income and those contributions are over $250,000.
- Work expenses: from 2026–27, residents with work income can claim a $1,000 standard deduction at tax time instead of listing their actual work expenses.
See your own take-home pay with the pay calculator.