Australian Marginal Tax Rates 2026-27
See your official tax-bracket rate, estimated tax on the next dollar, and average rate. The calculator accounts for LITO and the individual Medicare low-income reduction.
Enter your annual taxable income (before tax). This is your gross income minus deductions.
Uses the single low-income reduction; family, SAPTO and exemption settings can differ.
Enter your taxable income to see your marginal tax rate.
Australia uses a progressive tax system — you pay different rates on different portions of your income, not a single rate on the entire amount.
| Taxable income | Tax rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 15% | 15 cents for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,020 plus 30 cents for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,020 plus 37 cents for each $1 over $135,000 |
| $190,001 and over | 45% | $51,370 plus 45 cents for each $1 over $190,000 |
Medicare: most taxpayers above the individual low-income phase-in range pay 2%. Below that range it can be nil or phase in at 10 cents per extra dollar, so simply adding 2% is not always correct.
Compared with 2025-26: the second bracket is now 15%, down from 16%. See both years side-by-side →
Your marginal tax rate is the rate of tax applied to your last (or next) dollar of income. It's the rate you pay on income at the top of your earnings — not on all your income.
Example: $100,000 income (2026-27)
Income tax: $20,520 | Medicare: $2,000 | Total: $22,520 | Next-dollar rate: 32% | Average rate: 22.5%
Even though you're in the 30% bracket, you don't pay 30% on all income. The first $18,200 is tax-free and the next portion is taxed at 15%.
Marginal rate
Tax on your next dollar of income.
Use for: deduction value, salary sacrifice decisions, bonus tax.
Average rate
Total tax divided by total income.
Use for: understanding your overall tax burden as a percentage of income.
Key insight: Your average rate is usually lower than the rate on your next dollar because the tax-free threshold and lower brackets apply first.
These figures apply resident income tax after LITO plus the individual Medicare levy reduction. “Bracket” is the statutory rate on the top income slice; “next dollar” also reflects LITO withdrawal and Medicare phase-in.
| Taxable income | Total estimated tax | Average rate | Tax bracket | Next-dollar rate |
|---|---|---|---|---|
| $30,000 | $1,269 | 4.2% | 15% | 25% |
| $45,000 | $4,595 | 10.2% | 15% | 33.5% |
| $60,000 | $9,620 | 16% | 30% | 33.5% |
| $80,000 | $16,120 | 20.2% | 30% | 32% |
| $100,000 | $22,520 | 22.5% | 30% | 32% |
| $135,000 | $33,720 | 25% | 30% | 39% |
| $150,000 | $39,570 | 26.4% | 37% | 39% |
| $190,000 | $55,170 | 29% | 37% | 47% |
| $250,000 | $83,370 | 33.3% | 45% | 47% |
Assumes a single Australian resident who is not entitled to SAPTO or a Medicare exemption. Family Medicare thresholds, MLS, HELP and other offsets are outside this table.
The Stage 3 structure began on 1 July 2024. A further enacted cut reduced the second resident rate from 16% to 15% on 1 July 2026.
What is a marginal tax rate?
What are the tax brackets for 2026-27?
What is the difference between marginal and average tax rate?
Does Medicare levy affect my marginal rate?
Why does my marginal rate matter for tax planning?
What is the highest marginal tax rate in Australia?
What is the effective tax rate on a $100,000 income in Australia?
EOFY 2026 tools: EOFY action plan, tax refund calculator, EOFY checklist, EOFY countdown
Tax Accuracy & Sources
Applies 2026-27 and 2025-26 Australian resident brackets, LITO and the individual Medicare low-income reduction. Excludes family and SAPTO Medicare thresholds, Medicare exemptions, MLS, HELP, non-resident rates and other offsets.