Australian Tax Brackets (2026–27)

For a resident: nil up to $18,200; 15c for each $1 over $18,200 up to $45,000; 30c for each $1 over $45,000 up to $135,000; 37c for each $1 over $135,000 up to $190,000; and 45c for each $1 over $190,000. These rates do not include the 2% Medicare levy.

The first $18,200 of your taxable income is taxed at nil for a resident. If you are a resident you generally claim it through your employer, and you can only claim it with one employer at a time. Part-year residents claim a part of it.

No — and this is the most common source of wrong answers. The ATO states that these rates do not include the 2% Medicare levy. It is added on top of the income tax, so the real rate of tax on your income is higher than the bracket alone suggests.

Only the income inside the bracket is taxed at that bracket’s rate. Moving from the 30c bracket to the 37c bracket does not tax your whole income at 37c — it taxes only the part above the threshold at 37c. This is why a pay rise never leaves you worse off through tax brackets alone.

Not necessarily. The amounts in the tables above are the legislated thresholds for each year, and they have not all changed. What does change on 1 July most years are the thresholds used for other things — HECS repayments, the Medicare levy surcharge, super, and family payments — which is why those calculators carry their own income year labels.

The jump that surprises people is at $135,000, where the rate goes from 30c to 37c, and at $190,000 where it goes to 45c. Add the 2% levy and the top bracket is an effective 47 cents on the dollar above $190,000 — which is why salary sacrifice and super contributions are worth more the higher you earn.

There is a reduction for low-income earners, so not everyone on a low taxable income pays the full 2%. The exact figure depends on your situation and the ATO calculates it when you lodge — it is not something this page can give you as a single number.