Working Holiday Maker Tax Rates

Working holiday makers (WHMs) on 417 or 462 visas are taxed differently from other Australian workers. The first $45,000 is taxed at a flat 15%, with no tax-free threshold. This page explains when WHM rates apply and how they compare to resident rates.

Who the WHM tax applies to

The working holiday maker tax rates apply if you:

Hold a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462)
Earn income from an employer registered with the ATO as a WHM employer

The rates apply to your WHM income regardless of how long you've been in Australia. Even if you're a tax resident by ATO tests, WHM income is taxed at WHM rates.

WHM tax rates (2025-26)

$0 – $45,000

15%

Flat rate, no tax-free threshold

$45,001 – $135,000

30%

Standard non-resident rate

$135,001 – $190,000

37%

Standard non-resident rate

$190,001+

45%

Standard non-resident rate

Example: $30,000 income

Working holiday maker

WHM tax rates

Tax-free threshold: $0
Tax rate: 15% flat
Income tax: $4,500
Medicare Levy: $0 (non-residents)
Total tax: $4,500

Australian resident

Standard resident rates

Tax-free threshold: $18,200
Tax rate: 16% on $18,201–$30,000
Income tax: $1,888
Medicare Levy: $600
Total tax: $2,488

Result: At $30,000, the WHM pays $2,012 more in tax than a resident. The 15% flat rate without a tax-free threshold costs more at lower incomes.

Example: $60,000 income

Working holiday maker

WHM tax rates

Tax on first $45,000: $6,750 (15%)
Tax on $45,001–$60,000: $4,500 (30%)
Total tax: $11,250

Australian resident

Standard resident rates

Tax on $0–$18,200: $0
Tax on $18,201–$45,000: $4,288 (16%)
Tax on $45,001–$60,000: $4,500 (30%)
Medicare Levy (2%): $1,200
Total tax: $9,988

Result: At $60,000, the gap narrows—WHM pays $1,262 more. The WHM advantage at high brackets is offset by losing the tax-free threshold.

When standard resident rates apply instead

You're taxed at standard resident rates (not WHM rates) on:

Non-WHM income: Interest, dividends, rental income, or income from employers not registered as WHM employers
After visa change: If you transition to a different visa (e.g., student visa, skilled visa), WHM rates stop applying
Government payments: Some payments are taxed under different rules

Whether non-WHM income is taxed as resident or non-resident depends on your actual tax residency status—determined by factors like how long you've been in Australia, where you intend to live, and your ties to other countries.

Common mistakes

"I've been here six months, so I'm a tax resident"

Being physically present for six months doesn't automatically make you a tax resident. Residency depends on your permanent place of abode, intention to stay, and other ties. More importantly, WHM income is always taxed at WHM rates—residency status doesn't change that.

"My employer should use resident tax tables"

If your employer is registered as a WHM employer, they're required to withhold at WHM rates regardless of how long you've been here. If you believe you're being taxed incorrectly, speak to a tax agent—but generally, WHM employers must use WHM rates.

"I don't need to lodge a tax return"

You must lodge a return if you earned Australian income. Many WHMs receive refunds because employers over-withheld (especially if you had multiple short-term jobs). Lodging also allows you to claim work-related deductions.

"The 15% rate is always better than resident rates"

At lower incomes, residents pay less tax because of the $18,200 tax-free threshold. The WHM 15% rate only becomes competitive at higher incomes—and above $45,000, WHMs pay the same higher-bracket rates as non-residents anyway.

Employer WHM registration

For income to be taxed at WHM rates, your employer must be registered with the ATO as a working holiday maker employer. Most employers hiring WHMs are registered, but if not:

Your employer must withhold at standard non-resident rates (32.5% from the first dollar)
The correct rate is reconciled when you lodge your tax return
You may receive a refund or owe additional tax depending on the situation

FAQ

What is the working holiday maker tax rate?

Working holiday makers (visa subclass 417 and 462) pay a flat 15% tax on income up to $45,000. Income above $45,000 is taxed at standard non-resident rates: 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000.

Do working holiday makers get the tax-free threshold?

No. Working holiday makers are taxed from the first dollar earned. There is no $18,200 tax-free threshold for WHM income, even if you've been in Australia for more than six months.

When do resident tax rates apply to working holiday makers?

If you become an Australian resident for tax purposes (not just for visa purposes), you may be taxed as a resident on non-WHM income. However, income from WHM-registered employers is always taxed under WHM rates. The residency question is complex and depends on your ties to Australia.

Do I need to lodge a tax return as a working holiday maker?

Yes. You must lodge a tax return if you earned income in Australia. This allows you to claim any eligible deductions and ensures correct tax is calculated. Most working holiday makers receive a refund if their employer withheld too much tax.

View income tax calculator

Use the income tax calculator to estimate tax at standard Australian rates. Note: the calculator uses resident rates—WHM rates are shown above.

View income tax calculator →

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