Australian Income Tax Brackets 2025–26
Australia uses a progressive tax system: each rate applies only to the income that falls within its bracket, not your whole income. These are the ATO resident rates for the current financial year (2025–26).
Resident Tax Rates — FY2025–26
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 16% | 16c per $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,288 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,288 + 37c per $1 over $135,000 |
| $190,001 and over | 45% | $51,638 + 45c per $1 over $190,000 |
Resident Tax Rates — FY2026–27 (from 1 July 2026)
The legislated tax cut reduces the second bracket from 16% to 15% from 1 July 2026 (then to 14% from 1 July 2027). Everything else is unchanged.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 15% | 15c per $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,020 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,020 + 37c per $1 over $135,000 |
| $190,001 and over | 45% | $51,370 + 45c per $1 over $190,000 |
Foreign Resident Rates — FY2025–26
Foreign residents do not get the tax-free threshold and do not pay the Medicare levy.
| Taxable income | Rate |
|---|---|
| $0 – $135,000 | 30% |
| $135,001 – $190,000 | $40,500 + 37c per $1 over $135,000 |
| $190,001 and over | $60,850 + 45c per $1 over $190,000 |
Quick Take-Home Reference (Residents, FY2025–26)
| Salary | Income tax | Medicare | Take-home | Eff. rate |
|---|---|---|---|---|
| $30,000 | $1,888 | $278 | $28,534 | 4.9% |
| $50,000 | $5,788 | $1,000 | $43,462 | 13.1% |
| $70,000 | $11,788 | $1,400 | $56,812 | 18.8% |
| $90,000 | $17,788 | $1,800 | $70,412 | 21.8% |
| $120,000 | $26,788 | $2,400 | $90,812 | 24.3% |
| $150,000 | $36,838 | $3,000 | $110,162 | 26.6% |
| $200,000 | $56,138 | $4,000 | $139,862 | 30.1% |
Includes LITO where applicable. Excludes HECS/HELP and private health.
Frequently Asked Questions
What are the Australian income tax brackets for 2025–26?
For FY2025–26: 0% up to $18,200; 16% from $18,201–$45,000; 30% from $45,001–$135,000; 37% from $135,001–$190,000; and 45% above $190,000.
What is changing for 2026–27?
From 1 July 2026 the 16% bracket falls to 15%, worth up to $268 a year. From 1 July 2027 it falls again to 14%. All other thresholds are unchanged.
What is the tax-free threshold?
$18,200 for Australian residents — you pay no income tax on the first $18,200 you earn.