Australian Tax Brackets
2026-27 and 2027-28 ATO Tax Rates
The ATO's resident and foreign resident tax rates for 2025-26, 2026-27 and 2027-28, with a calculator for your tax, Medicare levy and the real rate on your next dollar.
Read the full answer — method, rates and figures
Quick answer: Australian resident tax brackets for 2026-27 (1 July 2026 – 30 June 2027): nil up to $18,200; 15% from $18,201 to $45,000; 30% to $135,000; 37% to $190,000; and 45% above $190,000. The only change from 2025-26 is the second rate, cut from 16% to 15%, and it falls again to 14% in 2027-28.
That saves up to $268 a year now and $536 from 1 July 2027. The 2% Medicare levy comes on top, and the low income tax offset means a resident pays no income tax until about $22,867.
Between $45,001 and $66,666 the real rate on each extra dollar is 33.5%, not 32%, because the offset is withdrawn. Example: $100,000 of taxable income pays $22,520 in 2026-27 including Medicare, an average rate of 22.5%.
Source: ATO resident and foreign resident tax rate tables, read 1 October 2026.
What are the tax brackets in Australia for 2026-27?
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
Excludes the 2% Medicare levy. Source: ATO resident tax rates and foreign resident tax rates, read 1 October 2026.
Income tax
$20,520
Medicare levy
$2,000
Average rate
22.5%
Rate on next $1
32.0%
In 2026-27, $100,000 of taxable income pays $20,520 of income tax and $2,000 of Medicare levy: $22,520 in total, leaving $77,480. Your top bracket is 30%, and the next dollar you earn costs 32.0% in tax. Medicare thresholds for 2026-27 are not yet set; the 2025-26 figures are used. Against 2025-26, you save $268.
Last reviewed 1 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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Tax = the bracket rates applied to each slice of taxable income (the ATO table for the year), less the low income tax offset (up to $700, non-refundable, reduced above $37,500 and gone at $66,667), plus the Medicare levy (2%, phased in for low incomes from $28,011 to $35,013 for a single person). Foreign residents use the foreign resident table, get no tax-free threshold and no offset, and pay no Medicare levy; the ATO has published that table up to 2025-26, so the calculator uses it for every year. The Medicare thresholds for 2026-27 and 2027-28 are not yet set, so the 2025-26 figures are carried forward and labelled. Not modelled: the Medicare levy surcharge, HELP repayments, family and senior Medicare thresholds, SAPTO, and part-year residency.
Australian tax brackets by year, 2023-24 to 2027-28
Resident rates for a full-year resident who claims the tax-free threshold, excluding the Medicare levy. 2025-26 is the year in the return you lodge now; 2026-27 is the year your pay is taxed in today.
Resident tax rates 2027-28 (Legislated: 14% second bracket)
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 14c for each $1 over $18,200 |
| $45,001 – $135,000 | $3,752 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $30,752 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,102 plus 45c for each $1 over $190,000 |
Resident tax rates 2026-27 (Current year: tax withheld from your pay now)
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
Resident tax rates 2025-26 (The return you lodge now (due 31 October 2026))
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Resident tax rates 2024-25 (First Stage 3 year)
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Resident tax rates 2023-24 (Before the Stage 3 cuts)
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 19c for each $1 over $18,200 |
| $45,001 – $120,000 | $5,092 plus 32.5c for each $1 over $45,000 |
| $120,001 – $180,000 | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | $51,667 plus 45c for each $1 over $180,000 |
2023-24 to 2026-27: ATO "Tax rates – Australian resident", read 1 October 2026. 2027-28: Income Tax Rates Act 1986 as amended by Act No. 28 of 2025; the ATO has not yet added the year to its table.
Your real marginal tax rate in 2026-27, with Medicare and the low income tax offset
The bracket rate is not what your next dollar costs. The Medicare levy adds 2% (10% while it phases in), and the low income tax offset is withdrawn as income rises, which works like a hidden extra rate. Between $45,001 and $66,666 the next dollar costs 33.5%, more than the 32.0% on the dollars above it. That matters for salary sacrifice, a pay rise or extra shifts.
| Taxable income | Bracket rate | Real rate on next $1 |
|---|---|---|
| $0 – $22,866 | 0% | 0.0% |
| $22,867 – $28,011 | 15% | 15.0% |
| $28,012 – $35,013 | 15% | 25.0% |
| $35,014 – $37,500 | 15% | 17.0% |
| $37,501 – $45,000 | 15% | 22.0% |
| $45,001 – $66,666 | 30% | 33.5% |
| $66,667 – $135,000 | 30% | 32.0% |
| $135,001 – $190,000 | 37% | 39.0% |
| $190,001 + | 45% | 47.0% |
Single resident, no other offsets. Medicare thresholds are the 2025-26 figures carried forward (2026-27 not yet set).
Tax on common incomes: 2025-26 vs 2026-27 vs 2027-28
Income tax plus Medicare levy for a single resident, after the low income tax offset.
| Taxable income | 2025-26 | 2026-27 | 2027-28 | Saving 2027-28 |
|---|---|---|---|---|
| $30,000 | $1,387 | $1,269 | $1,151 | $236 |
| $45,000 | $4,863 | $4,595 | $4,327 | $536 |
| $60,000 | $9,888 | $9,620 | $9,352 | $536 |
| $80,000 | $16,388 | $16,120 | $15,852 | $536 |
| $100,000 | $22,788 | $22,520 | $22,252 | $536 |
| $135,000 | $33,988 | $33,720 | $33,452 | $536 |
| $190,000 | $55,438 | $55,170 | $54,902 | $536 |
| $250,000 | $83,638 | $83,370 | $83,102 | $536 |
Saving = 2025-26 tax minus 2027-28 tax. Medicare thresholds for 2026-27 and 2027-28 carried forward from 2025-26.
Foreign resident tax rates 2025-26
If you were a foreign resident for tax purposes for the whole year, there is no tax-free threshold and no low income tax offset, and you do not pay the Medicare levy. $100,000 of Australian taxable income costs a foreign resident $30,000, against $22,788 for a resident in 2025-26.
| Taxable income | Tax on this income |
|---|---|
| $0 – $135,000 | 30c for each $1 |
| $135,001 – $190,000 | $40,500 plus 37c for each $1 over $135,000 |
| $190,001 and over | $60,850 plus 45c for each $1 over $190,000 |
ATO "Tax rates – foreign resident", read 1 October 2026; the same table applied in 2024-25. Selling property as a foreign resident? See the foreign resident CGT calculator.
Medicare levy: 2% on top of the tax brackets
The Medicare levy is 2% of your whole taxable income, charged separately from the brackets. For a single person in 2025-26 it is nil at or below $28,011, then 10 cents for each dollar above $28,011 until it reaches 2% of income at $35,013. Families, single parents and people eligible for the seniors and pensioners tax offset have higher thresholds, set out on the ATO's Medicare levy reduction page. If you earn above the surcharge threshold without private hospital cover, the separate Medicare levy surcharge calculator shows whether cover is cheaper than the surcharge.
From your bracket to your pay, your refund and your rank
The brackets give the tax on a year's taxable income. To turn a salary into weekly take-home pay with super and HELP, use the pay calculator; to estimate the refund on the return you lodge now, the tax return calculator. Salary sacrificed into super is usually taxed at 15% in the fund instead of at your marginal rate, which is worth most in the 33.5% band above; the salary sacrifice calculator shows the saving. And to see where your income sits against other Australian taxpayers, try the income percentile calculator.
How to use this calculator
- Enter your taxable income for the year (income minus deductions).
- Pick the income year: 2025-26 for the return you lodge now, 2026-27 for this year, 2027-28 for next year.
- Choose resident or foreign resident for tax purposes.
- Read your income tax, Medicare levy, average rate and the real rate on your next dollar.
❓ Frequently Asked Questions
What are the tax brackets in Australia for 2026-27?
$0 – $18,200: Nil; $18,201 – $45,000: 15c for each $1 over $18,200; $45,001 – $135,000: $4,020 plus 30c for each $1 over $45,000; $135,001 – $190,000: $31,020 plus 37c for each $1 over $135,000; $190,001 and over: $51,370 plus 45c for each $1 over $190,000. These are the ATO's resident rates for a full-year resident who claims the tax-free threshold, and they exclude the 2% Medicare levy.
Did the tax brackets change on 1 July 2026?
Only one rate changed. The $18,201 to $45,000 bracket fell from 16% to 15%.
Every threshold and the 30%, 37% and 45% rates are the same as 2025-26. Anyone earning over $45,000 saves the full $268 a year (1% of $26,800).
What are the tax brackets for 2027-28?
The second rate drops again to 14% from 1 July 2027; it is already law (Treasury Laws Amendment (More Cost of Living Relief) Act 2025). The thresholds stay at $18,200, $45,000, $135,000 and $190,000.
Compared with 2025-26, a taxpayer above $45,000 saves $536 a year.
Is the Medicare levy included in the tax brackets?
No. The ATO tables exclude it. Most residents pay a further 2% of their whole taxable income.
A single person pays nothing at or below $28,011, then 10 cents for each dollar above it until $35,013, after which the full 2% applies (2025-26 thresholds). Families and seniors have higher thresholds.
Foreign residents do not pay the Medicare levy.
What is my real marginal tax rate?
In 2026-27, the extra tax on your next dollar is 0.0% from $0 – $22,866, 15.0% from $22,867 – $28,011, 25.0% from $28,012 – $35,013, 17.0% from $35,014 – $37,500, 22.0% from $37,501 – $45,000, 33.5% from $45,001 – $66,666, 32.0% from $66,667 – $135,000, 39.0% from $135,001 – $190,000, 47.0% from $190,001 +. These include the Medicare levy and the withdrawal of the low income tax offset, which is why $45,001 to $66,666 costs 33.5% rather than the 32% the bracket and levy suggest.
Which tax brackets apply to the return I am lodging now?
A 2026 tax return (due 31 October 2026 if you lodge yourself) covers 2025-26, so it uses the 16% second rate, not 15%. The 15% rate only shows up in the tax withheld from your pay since 1 July 2026, and in the return you lodge in 2027.
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Further Reading
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