Australian income tax rates 2026–27
For 2026–27 (1 July 2026 – 30 June 2027), Australian residents pay no income tax on the first $18,200, then 15%, 30%, 37% and 45% in higher brackets. The lowest rate fell from 16% to 15% on 1 July 2026. The Medicare levy is a further 2% of taxable income for most people.
2026–27 resident tax rates
| 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 |
2025–26 resident tax rates (for comparison)
| 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 |
What the rate change means in dollars
| Taxable income | 2025–26 | 2026–27 | Difference |
|---|---|---|---|
| $50,000 | $5,788 | $5,520 | −$268 |
| $90,000 | $17,788 | $17,520 | −$268 |
| $150,000 | $36,838 | $36,570 | −$268 |
- 2025–26
- 2026–27
Show the numbers as a table
| Taxable income | 2025–26 | 2026–27 |
|---|---|---|
| $50,000 | $5,788 | $5,520 |
| $90,000 | $17,788 | $17,520 |
| $150,000 | $36,838 | $36,570 |
Anyone earning above $45,000 pays $268 less on the same income, because the cut applies to the $26,800 in the second bracket (1% of $26,800).
Low income tax offset (LITO)
Up to $700 for taxable incomes up to $37,500. It reduces by 5 cents per $1 between $37,500 and $45,000, then by 1.5 cents per $1 until it reaches nil at $66,667.
Medicare levy
2% of taxable income. People on low incomes pay a reduced levy or none; the 2025–26 thresholds for singles are $28,011 and $35,013. The 2026–27 thresholds have not been published yet.
Sources
- ATO: Tax rates – Australian residents
- ATO: Low and middle income earner tax offsets
- ATO: Medicare levy reduction for low-income earners
Figures last checked against official sources: . General information, not financial or tax advice.