Working Holiday Maker Tax Rates

Working holiday makers (WHMs) — people on a working holiday visa (WHV), subclass 417 or 462 — 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 (2026-27)

$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

Working holiday maker tax table

The full WHM tax table below shows the cumulative tax payable at the top of each band — the same figures your employer's payroll system uses to withhold tax.

Taxable income Rate Tax at top of band
$0 – $45,000 15% $6,750
$45,001 – $135,000 30% $33,750
$135,001 – $190,000 37% $54,100
$190,001+ 45% $54,100 plus 45c per $1 over $190,000

Example: $30,000 income

Working holiday maker

WHM tax rates

Tax-free threshold
$0
Tax rate
15% flat
Income tax
$4,500.00
Medicare Levy
$0 (non-residents)
Total tax
$4,500.00

Australian resident

Standard resident rates

Tax-free threshold
$18,200
Tax rate
15% on $18,201–$30,000
Income tax before offsets
$1,770.00
Low income tax offset
−$700.00
Medicare Levy
$198.90 (low-income shade-in)
Total tax
$1,268.90
Result: At $30,000, the WHM pays $3,231.10 more in tax than a resident. The 15% flat rate without a tax-free threshold costs more at lower incomes — and a resident on this income also keeps the full low income tax offset, which a WHM does not get.

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
$11,250.00

Australian resident

Standard resident rates

Tax on $0–$18,200
$0
Tax on $18,201–$45,000
$4,020.00 (15%)
Tax on $45,001–$60,000
$4,500.00 (30%)
Low income tax offset
−$100.00
Medicare Levy (2%)
$1,200.00
Total tax
$9,620.00
Result: At $60,000, the gap narrows—WHM pays $1,630.00 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 off your working holiday visa (WHV) 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 — this applies whether you hold a subclass 417 or 462 working holiday visa. Most employers hiring WHMs are registered, but if not:

  • Your employer must withhold at the standard non-resident rate (30% from the first dollar) instead of WHM rates
  • The correct rate is reconciled when you lodge your tax return
  • You may receive a refund or owe additional tax depending on the situation

Frequently asked questions

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 that 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.
Are working holiday makers tax residents for tax purposes?
Working holiday makers can be either Australian tax residents or foreign residents — visa status and tax residency are separate tests. It generally doesn't change how WHM income is taxed: income from a registered WHM employer is taxed under the working holiday visa (WHV) rates above, starting at a flat 15%, regardless of whether you meet the ordinary residency tests. Residency only affects your non-WHM income, like bank interest or income from an employer that isn't WHM-registered.
How much tax is withheld from a working holiday maker's pay?
If your employer is registered with the ATO as a WHM employer, they must withhold at WHM rates from your first dollar of pay — 15% up to $45,000, then the higher brackets shown in the table above as your pay increases. There's no tax-free amount to reduce how much is withheld, unlike resident PAYG withholding.
What tax rate applies once a working holiday maker earns over $45,000?
Once your taxable income passes $45,000, the rate steps up to 30% on the portion between $45,001 and $135,000 — the same rate other non-residents pay at that income level. It then rises to 37% and 45% at the higher thresholds shown in the WHM tax table above.
What if my employer isn't registered as a working holiday maker employer?
If your employer hasn't registered with the ATO as a WHM employer, they must withhold tax at the standard non-resident rate — 30% from your first dollar, with no tax-free threshold and no access to the lower 15% WHM band. This is reconciled when you lodge your tax return: you may get back the excess withheld once your correct WHM rate is applied, or owe more if too little was withheld.

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

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