Tax
Foreign Resident Tax In Australia
Short answer
Foreign residents for tax purposes get no tax-free threshold and are taxed from the first dollar: 30% to $135,000, 37% to $190,000 and 45% above. They generally do not pay the 2% Medicare levy and cannot claim the Low Income Tax Offset. Residency depends on your circumstances, not your visa label.
The rates
Foreign residents pay 30% up to $135,000, then 37% to $190,000 and 45% above, with no tax-free threshold and generally no Medicare levy. Select 'foreign resident' in the tax calculator.
Are you a resident for tax?
Tax residency depends on factors like where you live and work and your ties to Australia, not only your visa. If unsure, check the ATO residency tests or seek advice.
Frequently asked questions
Do foreign residents get the tax-free threshold?+
No. Tax applies from the first dollar at 30%.
Do they pay the Medicare levy?+
Generally no, as they are not entitled to Medicare.
Is residency the same as my visa?+
Not necessarily - tax residency depends on your circumstances and ATO tests.
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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