30% from the first dollar No tax-free threshold
Foreign Resident Tax Rates
A foreign resident for tax purposes pays 30% from the first dollar — no tax-free threshold, no low income offset. On $60,000 of income that is $9,480 more than a resident pays.
1 Enter your Australian income2 See the tax and the gap
Step 2 · your result
Tax on your income
$0
at foreign resident rates
- An Australian resident would pay
- $0
- You pay more by
- $0
- Your effective rate
- —
- Your top rate
- —
Rates from the Australian Taxation Office, checked 13 October 2026. General information only — not tax advice.
The foreign resident scale
| Taxable income | Tax on this income |
|---|---|
| $0 – $135,000 | 30c for each $1 — from the first dollar |
| $135,001 – $190,000 | $40,500 plus 37c for each $1 over $135,000 |
| $190,001 or more | $60,850 plus 45c for each $1 over $190,000 |
The 30% starts at $1. A resident pays nothing on the first $18,200 and 15% on the next $26,800. A foreign resident pays 30% on all of it — which is why the effective rate at low incomes is so much higher than people expect.
Resident or foreign resident? It is not your visa
This is the mistake that costs the most. Tax residency is not the same as immigration status. The ATO applies four tests:
- The resides test — do you actually reside in Australia?
- The domicile test — is Australia your permanent home?
- The 183 day test — have you been here more than half the year, and do you intend to stay?
- The superannuation test — a narrow test for certain public servants.
A temporary visa holder who lives and works here can easily be a resident for tax purposes — which is better for them, because the resident scale is more generous at low incomes. Being on a visa does not automatically make you a foreign resident.
Frequently asked questions
What is the foreign resident tax rate in Australia?
30% from the first dollar up to $135,000, then 37% to $190,000 and 45% above that. There is no tax-free threshold and no low income offset.
How do I know if I am a foreign resident for tax purposes?
It is not the same as your visa status. It depends on the ATO's residency tests — the resides test, the domicile test, the 183 day test and the superannuation test. Someone on a temporary visa who lives and works in Australia can still be a resident for tax purposes, and someone with permanent residency abroad can still be a foreign resident.
Do foreign residents pay the Medicare levy?
Generally no — a foreign resident for the full year can claim a full exemption. That is exemption category 2 on the tax return. See Medicare levy exemption for visa holders.
Do foreign residents get the low income tax offset?
No. LITO and the other offsets designed for low income earners are generally not available to foreign residents, which is part of why the gap is so wide at low incomes.
What about capital gains?
Foreign residents do not get the 50% CGT discount on most assets, and the main residence exemption is restricted. If you are selling property, get advice — this is the area where the difference between resident and foreign resident costs the most.