Australian tax rates for 2026–27
Australia’s income tax is progressive. Your final bill can also depend on Medicare levy, offsets, deductions and residency status.
Resident income-tax brackets
| Taxable income | Marginal rate |
|---|---|
| $0–$18,200 | 0% |
| $18,201–$45,000 | 15% |
| $45,001–$135,000 | 30% |
| $135,001–$190,000 | 37% |
| Over $190,000 | 45% |
These are marginal rates: each rate applies only to the income within its bracket. The rate on the second resident bracket fell from 16% in 2025–26 to 15% from 1 July 2026.
Foreign-resident tax rates
Foreign residents do not receive the $18,200 tax-free threshold or the Low Income Tax Offset. Standard foreign-resident rates are shown below.
| Taxable income | Marginal rate |
|---|---|
| $0–$135,000 | 30% |
| $135,001–$190,000 | 37% |
| Over $190,000 | 45% |
Low Income Tax Offset (LITO)
Eligible Australian residents may receive up to $700. The full offset applies through $37,500, then reduces by 5 cents per dollar to $45,000, then by 1.5 cents per dollar until it reaches zero at $66,667. It is non-refundable and cannot reduce income tax below zero.
Medicare levy
The standard Medicare levy is 2% of taxable income. For a single person who is not eligible for the seniors and pensioners tax offset, the low-income threshold is $28,011 and the shade-in range ends at $35,013. Within that range, the levy is generally 10% of the income above the low-income threshold, capped at the standard levy rate. Family thresholds, SAPTO and exemptions can change the result.
Official sources
- ATO resident tax rates
- ATO foreign-resident tax rates
- ATO Low Income Tax Offset
- ATO Medicare levy reduction
Tax rules change. Confirm the current rules and your individual circumstances before relying on an estimate.