Australian resident tax rates
| Taxable income | 2026-27 | 2025-26 |
|---|---|---|
| $0 to $18,200 | Nil | Nil |
| $18,201 to $45,000 | 15% | 16% |
| $45,001 to $135,000 | 30% | 30% |
| $135,001 to $190,000 | 37% | 37% |
| $190,001 and over | 45% | 45% |
Source: ATO, tax rates for Australian residents. Each rate applies only to the part of income inside its bracket.
Worked example
Taxable income of $80,000 in 2026-27: nothing on the first $18,200, 15% of $26,800 ($4,020) and 30% of $35,000 ($10,500), so $14,520 income tax. Add the 2% Medicare levy of $1,600 for a total of $16,120, an average rate of 20.15%. In 2025-26 the same income paid $268 more tax.
Offsets and levies
- Low income tax offset: $700 up to $37,500, falling by 5c per dollar to $325 at $45,000, then by 1.5c per dollar to nil at $66,667.
- Medicare levy: 2% of taxable income. Low income earners pay less or nothing.
- Medicare levy surcharge: 1% to 1.5% extra if you earn above the threshold without private hospital cover (not included here).
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Frequently asked questions
What are the tax brackets in Australia for 2026-27?
Nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy.
How much tax do I pay on $80,000?
$14,520 income tax plus $1,600 Medicare levy in 2026-27, $16,120 in total.
What changed on 1 July 2026?
The 16% rate on income between $18,201 and $45,000 fell to 15%, saving up to $268 a year.
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Last updated October 2026.