Australia taxes income in slices. Each rate applies only to the part of your income inside its bracket, so moving into a higher bracket never lowers what you take home.
Here are the 2026-27 resident rates, how the offset and the Medicare levy fit in, and two worked examples.
2026-27 tax rates for Australian residents
| Taxable income | Tax on this income |
|---|---|
| A$0 – A$18,200 | Nil |
| A$18,201 – A$45,000 | 15c for each A$1 over A$18,200 |
| A$45,001 – A$135,000 | A$4,020 plus 30c for each A$1 over A$45,000 |
| A$135,001 – A$190,000 | A$31,020 plus 37c for each A$1 over A$135,000 |
| A$190,001 and over | A$51,370 plus 45c for each A$1 over A$190,000 |
Offsets, Medicare and HELP
- Low income tax offset. A$700 off your tax up to A$37,500 of taxable income, reducing by 5c per dollar to A$45,000 and then by 1.5c per dollar until it runs out at A$66,667.
- Medicare levy. 2% of taxable income. People on low incomes pay less or none; this calculator uses the latest published (2025-26) low-income thresholds.
- HELP. Study loan repayments are worked out on repayment income: nil up to A$69,528, then 15% of income above that, 17% above A$129,717, and 10% of all income above A$186,050.
Worked examples
Example: A$50,000 taxable income
Bracket tax: A$4,020 + 30% × A$5,000 = A$5,520.
Low income tax offset: A$325 − 1.5% × A$5,000 = A$250, so income tax is A$5,270.
Total with the A$1,000 Medicare levy: A$6,270, or 12.5% of income.
Example: A$100,000 taxable income
Bracket tax: A$4,020 + 30% × A$55,000 = A$20,520. No offset at this income.
Total with the A$2,000 Medicare levy: A$22,520, or 22.5%. A HELP debt adds A$4,570.80.
For what lands in your bank account each payday, including super, use the Australian take-home pay calculator.
How to use this calculator
- Enter your yearly income before tax.
- Add any tax deductions you expect to claim.
- Tick the HELP box if you have a study loan.
FAQs
What is the tax-free threshold?
The first A$18,200 of income is tax-free for Australian residents. With the low income tax offset, you pay no income tax until about A$22,866.
What is my marginal tax rate?
It's the rate on your next dollar. For incomes between A$45,001 and A$135,000 it's 30%, or 32% with the Medicare levy.
Do foreign residents pay the same tax?
No. Foreign residents get no tax-free threshold and pay 30% from the first dollar. This calculator uses resident rates.
Is HELP a tax?
No, it's a loan repayment collected through the tax system. It's worked out on your repayment income and doesn't change your income tax.
Sources
- ATO: Tax rates – Australian residents
- ATO: Medicare levy
- ATO: Study and training loan repayment thresholds and rates
- Moneysmart: Income tax
Results are estimates for Australian residents and aren't tax or financial advice. For your own return, check with a registered tax agent. Spotted a mistake? Tell us.