The Australian tax system uses a progressive structure with 5 tax brackets for the 2026-27 financial year. The tax-free threshold of $18,200 means you pay no tax on income below this amount. For FY2026-27, the second bracket drops to 15% (from 16%), saving up to $268/year. The third bracket remains 30% following the Stage 3 tax cuts. All Australian residents also pay a 2% Medicare levy. A $100,000 earner pays $20,520 income tax + $2,000 Medicare = $22,520 total (~22.5%). Use our ATO-compliant calculator below to estimate your Australian income tax.
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
Source: Australian Taxation Office (ATO)
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For the 2026-27 financial year (July 2026 - June 2027), Australian resident tax brackets are: 0% on income up to $18,200 (tax-free threshold), 15% on $18,201-$45,000, 30% on $45,001-$135,000, 37% on $135,001-$190,000, and 45% on income over $190,000. The 2% Medicare levy applies in addition to these rates.
The Australian tax-free threshold is $18,200 per year for residents. This means you pay no income tax on the first $18,200 you earn. Non-residents do not receive the tax-free threshold and are taxed from the first dollar at 30%.
For the 2025-26 financial year, individual tax returns are due by 31 October 2026 if you lodge yourself. If you use a registered tax agent, you may have an extended deadline up to 15 May 2027, depending on your circumstances. The Australian financial year runs from 1 July to 30 June.
The Medicare levy is an additional 2% tax on your taxable income that funds Australia's public healthcare system. Most Australian residents pay this levy. Low-income earners may be eligible for a reduction or exemption if their taxable income is below $26,000 (for singles). There's also a Medicare Levy Surcharge (1-1.5%) for high earners without private hospital cover.
Non-residents do not receive the $18,200 tax-free threshold. They pay 30% on income from $0 to $135,000, 37% on $135,001-$190,000, and 45% on income over $190,000. Non-residents are not required to pay the Medicare levy. Working holiday makers (visa 417/462) have special rates: 15% on the first $45,000.
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Last Updated: July 2026