Australian Tax Brackets 2025-26
Complete guide to income tax brackets, rates, and how progressive taxation works in Australia.
Australian Resident Tax Brackets (2025-26 Financial Year)
Australia uses a progressive income tax system, meaning different portions of your income are taxed at different rates. The table below shows the official Australian resident tax brackets for the 2025-26 financial year, applicable to individuals who claim the tax-free threshold. These income tax rates are used by our calculator to estimate your take-home pay after tax.
| Taxable Income | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 | 16% | $4,288 |
| $45,001 – $135,000 | 30% | $27,000 |
| $135,001 – $190,000 | 37% | $20,350 |
| $190,001 – + | 45% | — |
Cumulative tax shows the total income tax payable if your taxable income is at the top of that bracket. It does not include the Medicare Levy (2%).
How Much Tax Do I Pay? Quick Reference (2025-26)
The table below shows the total tax (income tax + 2% Medicare Levy) at common salary levels for 2025-26. These figures assume you are an Australian resident claiming the tax-free threshold, with no HECS debt or salary sacrifice.
| Salary | Income Tax | Total Tax | Take-Home |
|---|---|---|---|
| $60,000 | $8,788 | $9,988 | $50,012 |
| $80,000 | $14,788 | $16,388 | $63,612 |
| $100,000 | $20,788 | $22,788 | $77,212 |
| $120,000 | $26,788 | $29,188 | $90,812 |
| $150,000 | $36,838 | $39,838 | $110,162 |
| $200,000 | $56,138 | $60,138 | $139,862 |
Try this scenario
Enter your exact salary to see a personalised breakdown including HECS, salary sacrifice, and super.
Calculate your take-home payWorked Example: $80,000 Salary
$0 – $18,200: $0 (tax-free)
$18,201 – $45,000: ($45,000 − $18,200) × 16% = $4,288
$45,001 – $80,000: ($80,000 − $45,000) × 30% = $10,500
Total tax = $14,788 | Effective rate = 18.49% | Marginal rate = 30%
What this means in dollars
On an $80,000 salary (2025-26)
$16,388 total tax (income tax + Medicare)
$14,788 in income tax plus $1,600 Medicare Levy. Take-home pay is $63,612 per year or $1,223 per week.
Try this scenario
Run this $80,000 example through the calculator and see the full breakdown including Medicare Levy, LITO offset, and take-home pay.
Calculate tax on $80,000Worked 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%
What this means in dollars
On a $100,000 salary (2025-26)
$22,788 total tax (income tax + Medicare)
$20,788 in income tax plus $2,000 Medicare Levy. Take-home pay is $77,212 per year or $1,485 per week.
Try this scenario
Run this $100,000 example through the calculator and see the full breakdown including Medicare Levy, LITO offset, and take-home pay.
Calculate tax on $100,000Low Income Tax Offset (LITO)
The Low Income Tax Offset reduces the amount of income tax you pay. It is worth up to $700 for taxable incomes up to $37,500, then phases down at 5 cents per dollar between $37,501 and $45,000 (reducing the offset to $325), and at 1.5 cents per dollar between $45,001 and $66,667 until it reaches zero. LITO is a non-refundable offset — it can reduce your tax to zero but won't generate a refund.
You don't need to do anything to claim LITO — it is applied automatically when you lodge your tax return or through your employer's PAYG withholding adjustments during the year.
What this means in dollars
LITO on a $45,000 salary
$700 less tax per year
LITO fully offsets the first $700 of tax payable, reducing income tax from $4,288 to $3,588. On $60,000, LITO is worth $333.
0% bracket ($0 – $18,200)
16% bracket ($18,201 – $45,000)
30% bracket ($45,001 – $135,000)
37% bracket ($135,001 – $190,000)
45% bracket ($190,001+)
Medicare Levy
In addition to income tax, most Australian residents pay the Medicare Levy — a charge of 2% of taxable income that funds Australia's public healthcare system. For a $100,000 salary, that adds $2,000 on top of the $20,788 income tax, bringing total tax to $22,788.
Low-income earners may be exempt or pay a reduced levy. For 2025-26, the full exemption applies below $27,222. Between $27,222 and $34,027, the levy is phased in at 10 cents per dollar above the threshold rather than the full 2%. Our calculator includes the Medicare Levy in all estimates so you can see your true take-home pay.
What this means in dollars
On a $100,000 salary (2025-26)
$22,788 total tax (income tax + Medicare)
$20,788 in income tax plus $2,000 Medicare Levy. Your effective rate is 22.79% \u2014 well below the 30% marginal rate.
Medicare Levy Surcharge (MLS) Thresholds
Higher-income earners without an appropriate level of private hospital cover pay the Medicare Levy Surcharge on top of the standard 2% Medicare Levy. For 2025-26, the individual income thresholds are:
| Income (Singles) | MLS Rate |
|---|---|
| $0 – $101,000 | 0% |
| $101,001 – $118,000 | 1.0% |
| $118,001 – $158,000 | 1.25% |
| $158,001+ | 1.5% |
Family thresholds are double the individual thresholds, plus $1,500 per dependent child after the first.
Medicare Levy Surcharge Calculator
Check if you'd pay the MLS and whether private health insurance would save you money.
If you have a HECS-HELP or student loan, repayments are calculated on top of these tax brackets using a separate repayment system. From 2025-26, Australia uses a marginal HECS repayment system, meaning repayment rates apply only to income above each threshold rather than your entire income. Use the HECS repayment calculator to see how much you'd repay at your income level.
Want to estimate your own tax and take-home pay? Try our Australian Income Tax Calculator to calculate your total tax, Medicare Levy, and net income based on the latest ATO tax rates.
Non-Resident Tax Brackets
Non-residents (foreign residents for tax purposes) do not receive a tax-free threshold, LITO, or SAPTO. They also do not pay the Medicare Levy. All income is taxed from the first dollar.
| 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.
What this means in dollars
Stage 3 tax cut savings on a $100,000 salary
$2,179 less tax per year
Under the old brackets you'd pay $22,967 in income tax. Under the new rates it's $20,788 \u2014 a saving of $2,179.
0% bracket ($0 – $18,200)
16% bracket ($18,201 – $45,000)
30% bracket ($45,001 – $135,000)
37% bracket ($135,001 – $190,000)
45% bracket ($190,001+)
Historical Tax Comparison
See how your tax has changed over 5+ financial years \u2014 visualise the impact of Stage 3 cuts and rate changes.
2026-27 Tax Changes (March 2025 Budget)
The March 2025 federal budget announced further income tax relief starting from 1 July 2026. The 16% tax bracket will drop to 15% for the 2026-27 financial year, and then to 14% from 1 July 2027. The tax-free threshold and all other brackets remain unchanged.
| Income Range | 2025-26 | 2026-27 | 2027-28 |
|---|---|---|---|
| $0 – $18,200 | 0% | 0% | 0% |
| $18,201 – $45,000 | 16% | 15% | 14% |
| $45,001 – $135,000 | 30% | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% | 37% |
| $190,001+ | 45% | 45% | 45% |
What this means in dollars
Savings from 2026-27 tax cuts
Up to $268/year from 2026-27, then up to $536/year from 2027-28
The savings apply to anyone earning above $18,200. Maximum benefit is for those earning $45,000+, as the entire $18,201\u2013$45,000 bracket gets the rate reduction.
Medicare levy low-income thresholds are also set to increase by 4.7%, continuing to protect low-income earners from paying the levy. We'll update the calculator with the 2026-27 rates once the financial year begins.
Working Holiday Maker Rates
Working holiday makers (visa subclass 417 & 462) pay a flat 15% on income up to $45,000, then standard rates above that. They do not receive the tax-free threshold. The rates below apply when the employer is registered as a working holiday maker employer with the ATO.
| Taxable Income | Tax Rate |
|---|---|
| $0 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 – + | 45% |
Try this scenario
See the tax difference between a resident and working holiday maker on a $60,000 salary.
Calculate as working holiday makerCompare Two Salaries
Considering a job offer or pay rise? Compare the after-tax impact of two different salary packages side-by-side, including different super rates and salary sacrifice amounts.
Salary Comparison Calculator
Compare two salary packages side-by-side \u2014 see which offer pays more after tax, super, and levies.
Frequently asked questions
Sources
Related guides & calculators
How Income Tax Works
Plain-English explanation of the Australian income tax system, including offsets, levies, and HECS.
Income Tax Calculator
Calculate your exact income tax, Medicare Levy, HECS repayments, and net take-home pay.
Salary Comparison Calculator
Compare two salary packages side-by-side with different super rates and frequencies.