Australia
Australian Income Tax Rates 2026–27 for Residents, With Worked Examples
The 2026–27 resident tax rates including the 15% bracket, how the 2% Medicare levy is added, and worked examples from A$50,000 to A$250,000.
The resident rates for 2026–27
Australian residents pay tax on a sliding scale, with each rate applying only to the slice of income inside its band. The first A$18,200 is the tax-free threshold. From 1 July 2026 the 16% band is reduced to 15%, with a further cut to 14% scheduled from 1 July 2027.
| Taxable income | Rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,200 – $45,000 | 15% |
| $45,000 – $135,000 | 30% |
| $135,000 – $190,000 | 37% |
| Over $190,000 | 45% |
The Medicare levy is on top
Most residents also pay a Medicare levy of 2% of taxable income, in addition to the income tax above. Lower-income earners get a reduction or exemption, which our calculator applies for a single person. The tax figures on this page include the levy, while the marginal rate shows the income tax band only.
For someone on A$100,000, income tax is A$20,520 and the Medicare levy is A$2,000, so the total is A$22,520.
Worked examples
This table shows the tax at four incomes, including the Medicare levy but excluding offsets and the Medicare levy surcharge:
| Income | Tax | Marginal rate | Effective rate |
|---|---|---|---|
| $50,000 | $6,520 | 30% | 13.04% |
| $100,000 | $22,520 | 30% | 22.52% |
| $150,000 | $39,570 | 37% | 26.38% |
| $250,000 | $83,370 | 45% | 33.35% |
Only the deductions applied automatically in Australia; no other deductions or reliefs claimed.
At A$50,000 the tax is A$6,520, which is A$5,520 of income tax and A$1,000 of levy. At A$150,000 it is A$39,570, an effective rate of about 26%. At A$250,000 it is A$83,370, an effective rate of about 33%.
Working through A$150,000
The 15% band covers A$26,800 (from A$18,200 to A$45,000) and gives A$4,020. The 30% band covers A$90,000 (up to A$135,000) and gives A$27,000. The last A$15,000 sits in the 37% band and gives A$5,550. Income tax is A$36,570, and the 2% levy adds A$3,000 for a total of A$39,570.
Why the marginal rate matters
The marginal rate tells you what a deduction or extra income is worth. At A$100,000 you are in the 30% band, so a A$10,000 salary sacrifice into super lowers taxable income by A$10,000. Tax falls from A$22,520 to A$19,320, a saving of A$3,200: 30% in income tax plus 2% in Medicare levy.
At A$150,000 the same sacrifice saves more, because the marginal rate is 37%. Tax falls from A$39,570 to A$35,670, a saving of A$3,900. Concessional contributions are capped each year and include your employer's contributions, so check your limit before you sacrifice more salary.
What these figures leave out
The estimates cover the main resident rates only, so they are not a substitute for a tax return. Please note the following gaps:
- Offsets such as the Low Income Tax Offset can lower the tax for people on lower incomes.
- The Medicare levy surcharge applies to some higher earners without private hospital cover.
- Family thresholds for the levy are not modelled.
- Working holiday makers and foreign residents have different rates.
- Capital gains, investment income and business income are not included.
Check the details for your year
Thresholds and rates change, so before you rely on the numbers, confirm them on the Australian Taxation Office website. The calculator lets you compare your salary with and without a super contribution or other deduction so you can see how much difference it would make.
Sources
Figures were last checked against these sources on September 19, 2026. See our methodology for how the calculator uses them.
Estimate only. This is an approximation, not a tax return or professional advice, and may not reflect every credit, exemption, or recent law change. Verify with your tax authority or a qualified professional before relying on it. Read the full disclaimer or see how it's calculated.