Tax
Australian Resident Tax Rates (2026-27)
Short answer
For 2026-27, Australian residents pay no tax on the first $18,200, then 15% to $45,000 (cut from 16% on 1 July 2026), 30% to $135,000, 37% to $190,000 and 45% above. Add the 2% Medicare levy, and subtract the Low Income Tax Offset of up to $700.
2026-27 rates
- $0 - $18,200: nil
- $18,201 - $45,000: 15%
- $45,001 - $135,000: 30%
- $135,001 - $190,000: 37%
- $190,001+: 45%
The Medicare levy (2%) applies on top for most residents.
Offsets
The Low Income Tax Offset reduces tax by up to $700 for lower incomes, phasing out by about $66,667. Use the tax calculator to see your effective and marginal rates.
Frequently asked questions
What is the top tax rate?+
45% on income above $190,000, plus the 2% Medicare levy.
Is there a tax-free amount?+
Yes - residents pay no income tax on the first $18,200 if they claim the threshold.
Are these the current rates?+
Yes, verified against the ATO and federal legislation for 2026-27 (1 July 2026 - 30 June 2027), including the 15% rate that replaced 16% on 1 July 2026.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
Related calculators & guides
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