Resident tax rates 2026-27
| Rate | Taxable income |
|---|---|
| 0% | $0 – $18,200 |
| 15% | $18,200 – $45,000 |
| 30% | $45,000 – $135,000 |
| 37% | $135,000 – $190,000 |
| 45% | $190,000 and over |
Tax on this income is calculated slice by slice: only the part of your income inside each bracket is taxed at that rate. The 2% Medicare levy is charged on top.
What changed from 1 July 2026
The 16% rate introduced by the Stage 3 tax cuts in 2024 falls to 15% in 2026-27, and a further cut to 14% is legislated from 1 July 2027. Anyone earning over $45,000 saves $268 a year compared with 2025-26.
The low income tax offset (LITO)
The LITO reduces tax by up to $700. It falls by 5 cents per dollar between $37,500 and $45,000, then by 1.5 cents per dollar until it reaches zero at $66,667. Combined with the tax-free threshold, it means you pay no income tax until about $22,500.
Tax on common salaries
| Salary | Income tax | Medicare levy | Take-home | Total rate |
|---|---|---|---|---|
| $30,000 | $1,070 | $199 | $28,731 | 4.2% |
| $45,000 | $3,695 | $900 | $40,405 | 10.2% |
| $60,000 | $8,420 | $1,200 | $50,380 | 16.0% |
| $80,000 | $14,520 | $1,600 | $63,880 | 20.2% |
| $100,000 | $20,520 | $2,000 | $77,480 | 22.5% |
| $135,000 | $31,020 | $2,700 | $101,280 | 25.0% |
| $150,000 | $36,570 | $3,000 | $110,430 | 26.4% |
| $190,000 | $51,370 | $3,800 | $134,830 | 29.0% |
| $250,000 | $78,370 | $5,000 | $166,630 | 33.4% |
Non-residents and working holiday makers
Foreign residents do not get the tax-free threshold and pay different rates. Working holiday makers pay 15% on their first $45,000. This guide covers Australian residents for tax purposes.
Worked example: $95,000
The first $18,200 is tax-free. Then:
- 15% × $26,800 = $4,020
- 30% × $50,000 = $15,000
Income tax: $19,020. Medicare levy (2%): $1,900. Take-home pay: $74,080 a year, or $2,849 per fortnight.
Second jobs and bonuses
Claim the tax-free threshold with only one employer. Your second employer then withholds tax from the first dollar, which avoids a tax bill at the end of the year. Bonuses are taxed at your marginal rate; withholding on a bonus may look high but it is reconciled when you lodge your return.
Frequently asked questions
What are the tax rates for 2026-27?
Nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy.
How much tax do I pay on $80,000?
$14,520 of income tax plus $1,600 Medicare levy.
Is the tax-free threshold still $18,200?
Yes, for Australian residents.
How much tax do I pay on $95,000?
$19,020 of income tax plus $1,900 Medicare levy.
Should I claim the tax-free threshold on two jobs?
No, only with one employer, otherwise too little tax will be withheld.
Figures use ATO 2026-27 resident tax rates, the low income tax offset, the Medicare levy and HELP repayment rates. Read our methodology. Last updated September 25, 2026. Estimates for information only, not tax advice.