Calculate your Australian tax as a foreign resident, temporary resident, or Australian resident with overseas income. Compare rates, claim the FITO, and see your take-home pay breakdown.
Rates for 2026-27No foreign-resident tax-free thresholdFITO estimate
01 —INPUTS
Australian-sourced income only (salary, wages, business income)
Your tax obligations depend on your residency status for tax purposes — not your visa or citizenship status.
Foreign Residents
If the ATO classifies you as a foreign resident, you pay Australian tax on relevant Australian-source income. There is no tax-free threshold — the 2026-27 rate starts at 30%, with higher rates above $135,000. Foreign-resident days can qualify for Medicare levy exemption, subject to the dependant rules.
Temporary Residents
Temporary residents generally use resident income-tax rates and disregard most foreign passive income and non-Australian capital gains. Certain overseas employment or service income remains taxable. Medicare levy is separate: a person not entitled to Medicare generally needs a Medicare Entitlement Statement for the exemption period.
Residents with Foreign Income
If you're an Australian resident for tax purposes, you're taxed on your worldwide income. To avoid double taxation, you can claim a Foreign Income Tax Offset (FITO) for tax paid to another country. The offset is limited to the Australian tax attributable to that foreign income.
Foreign resident vs Australian resident — $80,000 example
Foreign resident$24,000 total tax
Australian resident$16,120 after LITO and Medicare
DifferenceForeign resident pays $7,880 more per year
This comparison applies current individual rates, LITO and the Medicare low-income rules. It excludes MLS, family Medicare reductions, deductions and treaty outcomes, so it is a directional comparison rather than a residency decision.
Foreign Income Tax Offset (FITO)
If you're an Australian resident who has paid tax on foreign income in another country, you can claim a FITO to reduce your Australian tax:
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$1,000 or less — You can choose the $1,000 statutory limit without doing the detailed limit calculation; the usable amount still cannot exceed remaining Australian tax.
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Over $1,000 — The statutory limit is the greater of $1,000 and the tax-liability difference calculated under the ATO steps. The usable offset is also capped by foreign tax paid and remaining Australian tax.
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Non-refundable — FITO can reduce your tax to zero but cannot generate a refund. Excess credits cannot be carried forward to future years.
Temporary resident exemptions
If you hold a temporary visa and have never been a permanent resident, most foreign passive income is exempt:
Exempt (not taxed in Australia)
→Foreign dividends
→Foreign interest income
→Foreign rental income
→Capital gains on non-Australian assets
Still taxable
→All Australian-sourced income
→Foreign employment income (salary/wages for work performed overseas)
→CGT on taxable Australian property
This exemption makes Australia attractive for temporary workers with significant overseas investment portfolios — they can earn foreign investment income tax-free while working in Australia.
FAQ
What tax rate do foreign residents pay in Australia?
Foreign residents pay 30% tax from the very first dollar of Australian-sourced income — there is no tax-free threshold. The rate increases to 37% on income from $135,001 to $190,000, and 45% above $190,000. Foreign residents are also exempt from the 2% Medicare levy.
Do foreign residents pay Medicare levy?
Foreign residents for tax purposes can claim a Medicare levy exemption for their foreign-resident days, subject to the dependant rules. A working holiday visa does not by itself decide Medicare levy liability — tax residency and any exemption category still matter.
What is a temporary resident for tax purposes?
A temporary resident generally holds a temporary visa and neither they nor their spouse is an Australian resident under the Social Security Act definition. Temporary residents declare Australian income and certain overseas employment or service income, while most foreign passive income and non-Australian capital gains are disregarded. A Medicare levy exemption requires an ATO exemption category, such as a valid Medicare Entitlement Statement for the relevant period.
What is the Foreign Income Tax Offset (FITO)?
FITO helps prevent double taxation for Australian residents who paid qualifying foreign tax. For a claim of $1,000 or less, you can choose the $1,000 statutory limit without doing the detailed limit calculation. Larger claims require the ATO limit calculation. FITO is applied after other non-refundable offsets, cannot reduce remaining Australian tax below zero, is not refundable and cannot be carried forward.
What income do foreign residents need to declare?
Foreign residents generally declare Australian employment income, Australian rental income, Australian pensions and annuities, and capital gains on taxable Australian property. Australian interest, dividends and royalties subject to final withholding tax are generally not included in the Australian tax return. Foreign-source income is not declared merely because the person lodges in Australia.
How do I know if I am a resident or non-resident for tax?
The ATO uses several tests: the resides test (your ordinary concepts of living), the domicile test, the 183-day test, and the Commonwealth superannuation test. Key factors include where you live, your family connections, your economic ties, and how long you've been in Australia. A temporary visa holder can be either a resident or non-resident depending on their circumstances. The ATO provides an online residency tool to help determine your status.
Do non-residents get the tax-free threshold?
No. Both foreign residents and temporary residents who are classified as non-residents for tax purposes do not receive the $18,200 tax-free threshold. Foreign residents are taxed at 30% from the first dollar. However, temporary residents who meet the ATO's residency tests (many do, despite their visa being 'temporary') are taxed as residents and DO get the tax-free threshold.
Do I have a HELP/HECS debt obligation as a non-resident?
Yes, if you have an existing HELP, VSL, or TSL debt. Since 2017, overseas debtors must report their worldwide income to the ATO if they reside overseas for 183 or more days in any 12-month period. Compulsory repayments are calculated on your worldwide income using the same thresholds as residents.
This calculator uses official ATO year-specific foreign-resident and resident rates through 2026-27. Resident-mode Medicare uses the individual low-income rules or a user-confirmed full-year exemption. FITO assumes no related deductions and excludes MLS; exact limits can differ. It does not determine residency, apply treaties, calculate family Medicare reductions, model HELP overseas repayments or handle every income-source rule.