| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c per $1 over $18,200 |
| $45,001 – $135,000 | $4,020 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | $31,020 + 37c per $1 over $135,000 |
| $190,001 and over | $51,370 + 45c per $1 over $190,000 |
| Taxable income | Income tax before offsets | Approx. tax after LITO |
|---|---|---|
| $50,000 | $5,520 | $5,270 |
| $80,000 | $14,520 | $14,520 |
| $100,000 | $20,520 | $20,520 |
| $150,000 | $36,570 | $36,570 |
| $200,000 | $55,870 | $55,870 |
Australian resident tax brackets for 2026–27
Australian income tax is progressive. Your taxable income is divided across tax brackets, and each rate applies only to the portion of income that falls within that band. The following resident rates for 2026–27 are shown before the Medicare levy and any eligible tax offsets. The table and examples on this page are a guide; your assessment can also include other income, deductions and adjustments.
A rate shown for a bracket is not the percentage paid on all of your income. For instance, moving into a higher bracket does not cause every dollar to be taxed at the higher marginal rate. Only the dollars above the relevant threshold are taxed at that next rate.
Marginal rate versus effective rate
Your marginal tax rate is the rate on your next dollar of taxable income. It is useful when thinking about a pay rise, extra work or a deduction, but it does not describe your whole tax bill. Your effective rate is the total tax divided by total taxable income. Because lower slices of income are taxed at lower rates, the effective rate is generally below the highest marginal rate you reach.
The Medicare levy, Medicare Levy Surcharge, HELP repayments and offsets can affect the total amount leaving your pay. Those are separate elements and should not be confused with the marginal income-tax rate. The calculator estimates these separately where the available inputs permit.
Worked income examples
The example table uses the resident rates for 2026–27 and the Low Income Tax Offset (LITO) estimate described in the calculator. It excludes the Medicare levy, surcharge, HELP repayments, deductions and other offsets. It is therefore a way to compare bracket arithmetic, not a full tax return result.
At an income of $80,000, for example, the top slice falls in the 30% band, but the whole $80,000 is not taxed at 30%. The lower portion is calculated at the rates that apply to the lower bands. The same principle applies to the examples at $50,000, $100,000, $150,000 and $200,000.
What changed from 2025–26?
The resident rate applying to taxable income between $18,201 and $45,000 is 15% for 2026–27 in the rates used here, compared with 16% for 2025–26. The higher brackets and thresholds shown remain the same in this simplified comparison. This changes the tax calculation for income in and above that band, while the tax-free threshold remains $18,200.
Tax rules and eligibility can change, and a tax table is only one part of a final assessment. Check the ATO rates for the income year you are lodging. The 2025–26 financial year runs from 1 July 2025 to 30 June 2026; the 2026–27 year runs from 1 July 2026 to 30 June 2027.
Taxable income is not always gross salary
Taxable income is generally assessable income less allowable deductions. It may differ from a headline salary if you have additional income, deductible expenses, investment income or other adjustments. Employer super contributions are generally separate from take-home salary and are not a deduction in this calculator.
Offsets such as LITO reduce tax payable when you meet the rules. An offset is different from a deduction: a deduction generally reduces taxable income, while a tax offset reduces tax calculated. The calculator uses a simplified LITO schedule and should not be treated as a final assessment of your eligibility.
Use the rates for your situation
These rates are for Australian resident individuals. Non-residents and working holiday makers can be subject to different tax schedules. Your residency for tax purposes is a legal question that depends on your circumstances, not simply your passport or visa label. If your situation is not straightforward, consider advice from a registered tax agent.
Use the calculator to explore an estimate and change the residency selection if relevant. For a more complete return, add all income and deductions through myGov or work with a registered agent. Rates verified October 2026 from ato.gov.au; check the ATO for any later updates.
How deductions and offsets fit in
Tax brackets apply to taxable income, not necessarily the amount shown on a salary contract. Allowable deductions can reduce assessable income when the eligibility rules are met and records support the claim. A tax offset works differently: it reduces tax payable after the tax on taxable income has been calculated. The LITO example in this guide is an offset, not a deduction.
Your final assessment can also include Medicare levy amounts, study-loan repayments, tax withheld, other offsets and income adjustments. These may change the final amount without changing the marginal rate that applies to the next dollar. This is why an online bracket table is useful for understanding the structure, while a complete return or personal estimate needs more information.
Frequently asked questions
What is the tax-free threshold in Australia?
For Australian residents, the first $18,200 of taxable income is generally taxed at 0% under the rates shown for 2026–27.
Is my marginal rate the rate paid on all my income?
No. It applies only to the slice of taxable income within that tax bracket. Lower slices use lower rates.
Do these rates include the Medicare levy?
No. The resident income tax rates shown exclude the Medicare levy, which is generally calculated separately.