Foreign Resident Tax Rates
Tax rates for individuals who are not Australian residents for tax purposes — no tax-free threshold and different brackets.
If you are classified as a foreign resident for tax purposes (non-resident), you are taxed only on your Australian-sourced income but at different rates and without the tax-free threshold. For 2025–26, foreign residents pay 30% on income from $0 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. There is no Medicare levy for foreign residents, but also no access to LITO or other resident-only offsets.
Your tax residency status is determined by factors including your domicile, the 183-day test, your ties to Australia (family, business, assets), and your intention to reside. It is possible to be a tax resident of both Australia and another country simultaneously, in which case double tax agreements (DTAs) may provide relief from being taxed twice on the same income.
Foreign residents are not entitled to the 50% CGT discount for capital gains on assets acquired after 8 May 2012, and CGT withholding of 12.5% applies to property disposals by foreign residents where the market value is $750,000 or more. Foreign residents also cannot access the main residence CGT exemption unless specific conditions are met.