Australian Tax Brackets 2025-26
Complete guide to income tax brackets, rates, and how progressive taxation works in Australia.
Resident Tax Brackets (FY 2024-25 & FY 2025-26)
These rates apply to Australian residents for tax purposes who claim the tax-free threshold.
| Taxable Income | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 | 16% | Up to $4,288 |
| $45,001 – $135,000 | 30% | Up to $27,000 |
| $135,001 – $190,000 | 37% | Up to $20,350 |
| $190,001 – + | 45% | — |
Worked Example: $100,000 Salary
$0 – $18,200: $0 (tax-free)
$18,201 – $45,000: ($45,000 - $18,200) × 16% = $4,288
$45,001 – $100,000: ($100,000 - $45,000) × 30% = $16,500
Total tax = $20,788 | Effective rate = 20.79% | Marginal rate = 30%
Non-Resident Tax Brackets
Non-residents do not receive a tax-free threshold, LITO, or SAPTO.
| Taxable Income | Tax Rate |
|---|---|
| $0 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 – + | 45% |
Stage 3 Tax Cuts
From 1 July 2024, the Stage 3 tax cuts reduced the 19% bracket to 16%, lowered the 32.5% bracket to 30%, and raised the 37% threshold from $120,000 to $135,000. These changes benefit all taxpayers earning above $18,200.
Working Holiday Maker Rates
Working holiday makers (visa subclass 417 & 462) pay 15% on income up to $45,000, then standard rates above that. They do not receive the tax-free threshold or Medicare levy.