Australia · 2026-27
Australian income tax rates and brackets, 2026-27
The 2026-27 resident rates are 0% to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. They exclude the 2% Medicare levy. The 15% band replaced 16% on 1 July 2026.
Resident tax rates 2026-27
| Taxable income | Tax on this income |
|---|---|
| 0 to $18,200 | Nil |
| $18,201 to $45,000 | 15c for each $1 over $18,200 |
| $45,001 to $135,000 | $4,020.00 plus 30c for each $1 over $45,000 |
| $135,001 to $190,000 | $31,020.00 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370.00 plus 45c for each $1 over $190,000 |
Read from the ATO's resident rates page. The same page lists 2025-26 at 16c for the second band, which is why the base amounts differ by $268 from $45,000 up.
What the tax comes to at 12 incomes
| Income | Tax on rates | Offset | Tax payable | Medicare levy | Share of income | Saved vs 2025-26 |
|---|---|---|---|---|---|---|
| $25,000 | $1,020.00 | −$700.00 | $320.00 | $0.00 | 1.3% | $68 |
| $35,000 | $2,520.00 | −$700.00 | $1,820.00 | $698.90 | 7.2% | $168 |
| $45,000 | $4,020.00 | −$325.00 | $3,695.00 | $900.00 | 10.2% | $268 |
| $60,000 | $8,520.00 | −$100.00 | $8,420.00 | $1,200.00 | 16% | $268 |
| $75,000 | $13,020.00 | None | $13,020.00 | $1,500.00 | 19.4% | $268 |
| $90,000 | $17,520.00 | None | $17,520.00 | $1,800.00 | 21.5% | $268 |
| $120,000 | $26,520.00 | None | $26,520.00 | $2,400.00 | 24.1% | $268 |
| $135,000 | $31,020.00 | None | $31,020.00 | $2,700.00 | 25% | $268 |
| $160,000 | $40,270.00 | None | $40,270.00 | $3,200.00 | 27.2% | $268 |
| $190,000 | $51,370.00 | None | $51,370.00 | $3,800.00 | 29% | $268 |
| $220,000 | $64,870.00 | None | $64,870.00 | $4,400.00 | 31.5% | $268 |
| $300,000 | $100,870.00 | None | $100,870.00 | $6,000.00 | 35.6% | $268 |
"Share of income" is tax payable plus the Medicare levy over income. The offset is the low income tax offset, which only reduces tax and is never paid out. Pick a salary on the salary pages for the full picture including a study loan and super.
Questions
What are the Australian tax brackets for 2026-27?
For residents: nil up to $18,200; 15c for each dollar from $18,201 to $45,000; $4,020.00 plus 30c over $45,000 up to $135,000; $31,020.00 plus 37c over $135,000 up to $190,000; and $51,370.00 plus 45c over $190,000. The 2% Medicare levy is separate.
What does the 16% to 15% cut save me?
1% of the income between $18,200 and $45,000, which is at most $268 a year (1% of $26,800) for anyone earning $45,000 or more. Someone on $30,000 saves $118 (1% of $11,800).
Is the tax-free threshold part of the first bracket?
Yes. The first $18,200 is taxed at nil for a resident, which is why the 15% band is worked out on income above $18,200, not on the whole amount. The ATO prints the base amount of each band, so you can read tax straight off the table.
Do I pay the higher rate on all my income?
No. Each rate applies only to the slice of income inside its band, so a rise that takes you into the next band only taxes the extra dollars at the higher rate. The exception to watch is not income tax but the Medicare levy surcharge and HELP repayments, which can step up with income.
More Australian guides
Estimates for the 2026-27 financial year using rates read from the ATO on 2026-10-03. Assumes an Australian resident for the whole year. Not payroll, tax or financial advice.