Australian Tax Brackets 2026-27
The 2026-27 resident tax brackets apply from 1 July 2026. The second bracket rate has dropped from 16% to 15% — the first of two legislated cuts — while every threshold stays unchanged. This guide lists the current rates, what the cut is worth, and worked examples.
Looking for the previous year? See the 2025-26 edition, still live for returns being lodged now.
Quick answer
How much tax on $100,000? Estimated income tax is $20,520 plus $2,000 Medicare levy for 2026-27.
After-tax pay: Approximate annual take-home is $77,480 before other adjustments.
With HELP: Repayment amounts depend on HELP thresholds and are calculated separately.
What changed on 1 July 2026: the 16% bracket fell to 15% — about $268 a year for incomes of $45,000 or more.
2026-27 Resident Tax Brackets
| Income Range | Tax Rate | Tax on This Bracket |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 15% | 15c per $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,020 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,020 + 37c per $1 over $135,000 |
| $190,001 + | 45% | $51,370 + 45c per $1 over $190,000 |
The above rates do not include the 2% Medicare levy. These rates apply to Australian residents for tax purposes.
What changed from 2025-26
From 1 July 2026, the second bracket rate fell from 16% to 15% — the first of two legislated cuts (it drops again to 14% from 1 July 2027). The bracket thresholds are unchanged; only the rate on the $18,201–$45,000 band changed.
| Income range | 2025-26 rate | 2026-27 rate |
|---|---|---|
| $0 – $18,200 | 0% | 0% |
| $18,201 – $45,000 | 16% | 15% ↓ |
| $45,001 – $135,000 | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% |
| $190,001 + | 45% | 45% |
The cut is worth up to $268 a year once you earn $45,000 or more (1% of the full $18,201–$45,000 band). Below $45,000 the saving scales with income:
| Income | 2025-26 tax | 2026-27 tax | You save |
|---|---|---|---|
| $30,000 | $1,888 | $1,770 | $118 |
| $45,000 | $4,288 | $4,020 | $268 |
| $80,000 | $14,788 | $14,520 | $268 |
| $150,000 | $36,838 | $36,570 | $268 |
Income tax only (excludes the 2% Medicare levy), assuming Australian residency for the full year. See the marginal tax rates guide for how these brackets stack with Medicare and offsets.
The second-bracket cut runs across three financial years — all legislated:
| Financial year | Income range | Rate on $18,201–$45,000 |
|---|---|---|
| 2025-26 | $18,201 – $45,000 | 16% |
| 2026-27 (current) | $18,201 – $45,000 | 15% |
| 2027-28 (from 1 July 2027) | $18,201 – $45,000 | 14% |
The 2027-28 rate is derived from the central tax-year config. All other bracket thresholds ($18,200 / $45,000 / $135,000 / $190,000) are unchanged through 2027-28.
Tax-Free Threshold
The tax-free threshold remains at $18,200 for Australian residents. Income up to this amount is not subject to income tax. If you earn above $18,200, only the income above the threshold is taxed at progressive rates.
Non-residents do not receive the tax-free threshold and are taxed from the first dollar earned in Australia.
Non-Resident (Foreign Resident) Tax Brackets 2026-27
Foreign residents for tax purposes have no tax-free threshold and are taxed from the first dollar of Australian-sourced income. The Medicare levy does not apply:
| Income Range | Tax Rate |
|---|---|
| $0 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 + | 45% |
No Medicare levy applies to foreign residents. Working-holiday-makers use a separate schedule (15% on the first $45,000, then resident rates above that). Residency for tax purposes is determined by the ATO's residency tests, not visa type.
Example Tax Calculations
Here's how much tax you'd pay at five common income levels in 2026-27:
Medicare Levy
In addition to income tax, Australian residents pay a 2% Medicare levy on their taxable income. This funds the public healthcare system (Medicare).
Low-income earners may qualify for a reduction or exemption. The Medicare levy reduction threshold for singles is $28,011 for 2026-27. Families have a higher threshold based on the number of dependents.
The Medicare Levy Surcharge (MLS) may also apply if you earn above the singles threshold and don't hold private hospital cover. See our Medicare Levy & MLS Calculator and the 2026-27 Medicare levy thresholds.
Frequently asked questions
What are the Australian tax brackets for 2026-27?
What changed in the 2026-27 tax brackets?
What is the tax-free threshold in Australia?
How much tax do I pay on $100,000 in 2026-27?
How does the progressive tax system work?
What is the Medicare levy?
What is the top marginal tax rate in Australia?
Do non-residents pay different tax rates?
Do foreign residents pay the Medicare levy?
What is the lowest tax rate in 2027-28?
Calculate your tax
Use our income tax calculator to see exactly how much tax you'll pay on your specific income. Or check the pay calculator for take-home pay with HELP debt and salary sacrifice. To understand the difference between your marginal rate and what you actually pay, see the marginal tax rates guide.
Related tax references
- Tax Tables 2026-27 Australia — weekly, fortnightly and monthly PAYG lookups
- Marginal Tax Rates Australia — understand your marginal vs average rate
- Australian Tax Brackets 2025-26 — the prior-year edition for returns still being lodged