Four tax scales, one country Not the same as your visa
Visa Holders and Australian Tax
Australia taxes people on four different scales depending on residency and visa type, and the rate you get is not decided by your visa alone. This cluster covers what each one pays, and where the traps are.
Working holiday visa tax
15% from the first dollar — no tax-free threshold — for subclass 417 and 462.
Foreign resident tax rates
30% from the first dollar, and it is not the same thing as being on a visa.
Medicare levy exemption
Two exemptions worth 2% of your income, and the 8 week statement one of them needs.
Departing Australia super
65% for working holiday makers, 35% or 45% for other temporary residents.
Skilled migration points
Work out your points score for the 189, 190 and 491 visas from the official table.
PR points table
Every category of the points test, with the nomination points for each subclass.
The four scales, side by side
| Who | Tax on the first dollar | Tax-free threshold |
|---|---|---|
| Australian resident | Nil up to $18,200 | $18,200 |
| Working holiday maker (417 / 462) | 15% | None |
| Foreign resident | 30% | None |
| Backpacker on other visa types | Depends on residency | Depends on residency |
The threshold is worth $5,460. That is what a foreign resident pays on the first $18,200 that an Australian resident keeps entirely. Getting your residency status right is the single most valuable tax decision a visa holder makes.
The mistake that costs the most
Tax residency is not immigration status. The ATO does not ask what visa you hold — it applies four tests: the resides test, the domicile test, the 183 day test and the superannuation test.
A temporary visa holder who lives and works in Australia can be a resident for tax purposes and get the tax-free threshold. Assuming that being on a visa makes you a foreign resident — or that it does not — is how people either overpay or get a bill years later.
Frequently asked questions
Do visa holders pay the same tax as Australians?
It depends on your tax residency, not your visa. A temporary visa holder who lives and works in Australia can be a tax resident and pay the same rates as anyone else. But working holiday makers have their own scale (15% from the first dollar), and foreign residents have another (30% from the first dollar).
Which visa holders pay the most tax?
Foreign residents, at 30% from the first dollar — with no tax-free threshold and no low income offset. Working holiday makers come next at 15% from the first dollar. Ordinary tax residents pay the least, because they get the first $18,200 tax-free.
Do I get the tax-free threshold on a temporary visa?
Not automatically. It depends on whether you are a resident for tax purposes. If you are a resident, you do. If you are a foreign resident, you do not — and if you are a working holiday maker, you do not either, which is the whole point of the working holiday scale.
Do visa holders pay the Medicare levy?
Often not. A foreign resident can claim a full exemption, and a temporary resident not entitled to Medicare can claim one with a Medicare Entitlement Statement. That is worth 2% of your taxable income.
What happens to my super when I leave?
You can claim it as a DASP once you have left and your visa has ceased. Working holiday makers pay 65% tax on it; other temporary residents pay 35% or 45% depending on whether the contributions were taxed.
Related
- Take-home pay calculator — for Australian residents
- Income tax calculator
- Medicare levy reduction
- Centrelink payment rates
Rates and rules from the Australian Taxation Office, checked 13 October 2026. General information only — not tax advice.