What are the tax brackets in Australia for 2025-26?

The 2025-26 Australian resident tax brackets are: $0-$18,200 at 0% (tax-free threshold), $18,201-$45,000 at 16%, $45,001-$135,000 at 30%, $135,001-$190,000 at 37%, and income above $190,000 at 45%. These rates were updated from 1 July 2024 under Stage 3 tax cuts.

How is tax different for foreign residents in Australia?

Foreign residents (non-residents for tax purposes) do not receive the tax-free threshold. All income is taxed from the first dollar at 30% up to $135,000, then 37% up to $190,000, and 45% above that. Foreign residents also do not pay the Medicare levy but may be subject to other withholding obligations.

What is the working holiday maker tax rate?

Working holiday makers (subclass 417 and 462 visa holders) pay a flat 15% on the first $45,000 of income, then standard resident rates above that: 30% for $45,001-$135,000, 37% for $135,001-$190,000, and 45% above $190,000. Employers must be registered with the ATO to apply these rates.

What is the effective tax rate?

Your effective tax rate is the total tax you pay (income tax + Medicare levy + any surcharges + HECS repayments) divided by your total taxable income, expressed as a percentage. It represents the average rate of tax across all your income, which is always lower than your marginal tax rate (the rate on your last dollar earned).

Income Tax Calculator Australia 2025-26

Q: How much tax do I pay on $100,000 in Australia?

On a taxable income of $100,000 in 2025-26, an Australian resident pays $20,788 in income tax plus $2,000 in Medicare levy, totalling $22,788. This gives an effective tax rate of about 22.8%. Your after-tax income would be approximately $77,212 per year or $2,970 per fortnight.

Calculate your Australian income tax with a full bracket-by-bracket breakdown. Supports residents, foreign residents, and working holiday makers. Includes Medicare levy, surcharge, and HECS-HELP repayments.

Last verified: 5 May 2026

How much income tax do I pay in Australia in 2025-26?

Australian residents pay nil on the first $18,200, then 16% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above $190,000 (2025-26 Stage 3 rates). Add a 2% Medicare levy on taxable income, plus HECS-HELP repayments if applicable. Source: Australian Taxation Office.

Quick reference. $60,000 income → $9,988 total tax (take-home ~$50,012). $80,000 → $16,388 (~$63,612). $100,000 → $22,788 (~$77,212). $150,000 → $39,838 (~$110,162). $200,000 → $60,138 (~$139,862). Figures exclude HECS-HELP and Medicare Levy Surcharge.

Sourced from

7 primary sources

TR-2025-1Public Ruling
TR 2025/1 — Income tax: deductions for work-related expenses
What employees can deduct as work-related expenses, the substantiation rules, and the new fixed-rate method for working from home.
ATO-Tax-Rates-2026ATO Guidance
Resident tax rates 2025-26 (Stage 3 in effect)
0–$18,200 nil; $18,201–$45,000 16c; $45,001–$135,000 30c; $135,001–$190,000 37c; $190,001+ 45c. Plus 2% Medicare levy.
ATO-HECS-Repayment-2026ATO Guidance
Compulsory HELP/HECS repayment thresholds 2025-26
Repayment starts at $54,435 (1%), scaling to 10% at $159,664+. Repayment income includes taxable income plus salary-sacrificed super and reportable fringe benefits.
ATO-Foreign-Resident-RatesATO Guidance
Foreign resident tax rates 2025-26
No tax-free threshold. 30c on first $135,000; 37c $135,001–$190,000; 45c above. No Medicare levy. HELP/HECS repayments still apply if registered.
ATO-Salary-Sacrifice-EffectiveATO Guidance
Effective salary sacrifice arrangements
Salary sacrifice must be a prospective agreement, in writing, on amounts not yet earned. Can't backdate. Reduces taxable income; sacrificed amounts are taxed at 15% in super (or 30% if Division 293 applies).
ATO-PSIATO Guidance
Personal Services Income (PSI) rules
If more than 50% of contract income is for your skill/labour, PSI rules may attribute income to you personally and limit deductions. Affects contractor and sole-trader take-home calcs.
ATO-Working-Holiday-MakerATO Guidance
Working holiday maker tax rates
Subclass 417/462 visa holders: 15c on first $45,000, then resident rates apply. No tax-free threshold. Employer must register as a working-holiday-maker employer.

Frequently asked questions

What are the Australian tax brackets for 2025-26?

For the 2025-26 financial year, Australian tax residents pay: nil on income up to $18,200; 16% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% on income above $190,000. Source: Australian Taxation Office.

How much tax do I pay on $100,000 in Australia?

A tax resident earning $100,000 in 2025-26 pays $20,788 in income tax before the Medicare levy. With the 2% Medicare levy ($2,000), total tax is $22,788, leaving take-home pay of about $77,212. HECS repayments are additional if applicable. Source: ATO.

What is the tax-free threshold in Australia?

The Australian tax-free threshold is $18,200 — the first $18,200 of taxable income is not taxed for tax residents. The threshold is unchanged for 2025-26 and 2026-27. Source: Australian Taxation Office.

Does the tax calculator include the Medicare levy and HECS?

Yes. The Savings Mate income tax calculator adds the 2% Medicare levy (with low-income reductions) and calculates HECS-HELP repayments based on your 2025-26 repayment income. All rates use the current ATO thresholds.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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