Income tax rates – Australian residents

These rates apply to individuals who are Australian residents for tax purposes.

Taxable income Tax rate Tax on this income
$0 – $18,200 0% Nil
$18,201 – $45,000 16% 16c for each $1 over $18,200
$45,001 – $135,000 30% $4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000 37% $31,288 plus 37c for each $1 over $135,000
$190,001 and over 45% $51,638 plus 45c for each $1 over $190,000

Note: These rates do not include the 2% Medicare levy. Learn about marginal tax rates →

Foreign residents

Taxable income Tax rate Tax on this income
$0 – $135,000 30% 30c for each $1
$135,001 – $190,000 37% $40,500 plus 37c for each $1 over $135,000
$190,001 and over 45% $60,850 plus 45c for each $1 over $190,000

Foreign residents do not pay Medicare levy and have no tax-free threshold.

Medicare levy

Standard rate

Medicare levy rate 2% of taxable income

Low-income thresholds (reduction applies)

Category No levy payable Reduced levy
Singles Up to $26,000 $26,001 – $32,500
Families Up to $43,846 $43,847 – $54,808
Seniors (single) Up to $41,089 $41,090 – $51,361
Seniors (family) Up to $57,198 $57,199 – $71,498

Family thresholds increase by $4,027 for each dependent child.

Medicare Levy Surcharge (no private hospital cover)

Income (singles) Income (families) MLS rate
$0 – $101,000 $0 – $202,000 0%
$101,001 – $118,000 $202,001 – $236,000 1.0%
$118,001 – $158,000 $236,001 – $316,000 1.25%
$158,001+ $316,001+ 1.5%

Family thresholds increase by $1,500 for each dependent child after the first.

HELP / HECS repayment thresholds

From 2025-26, HELP repayments use a marginal rate system. You only pay on income above the minimum threshold, not on your total income.

Repayment income Repayment calculation
$0 – $67,000 Nil
$67,001 – $125,000 15c for each $1 over $67,000
$125,001 – $179,285 $8,700 plus 17c for each $1 over $125,000
$179,286 and above 10% of total repayment income

Example: Income of $80,000

Under the new marginal system, you pay 15% of income above $67,000:
Repayment = 15% × ($80,000 - $67,000) = $1,950

Previously, this would have been $2,800 (3.5% of total income).

Repayment income = taxable income + net investment losses + reportable fringe benefits + reportable super contributions. Calculate your HELP repayment →

Tax offsets

Low Income Tax Offset (LITO)

Taxable income Offset amount
$0 – $37,500 $700
$37,501 – $45,000 $700 minus 5c for each $1 over $37,500
$45,001 – $66,667 $325 minus 1.5c for each $1 over $45,000
$66,668+ Nil

Seniors and Pensioners Tax Offset (SAPTO)

Status Maximum offset Shade-out threshold
Single $2,230 $32,279 – $50,119
Couple (each) $1,602 $28,974 – $41,790
Couple (separated by illness) $2,040 $31,279 – $47,599

Superannuation thresholds

Item 2025-26
Superannuation Guarantee rate 12%
Concessional contributions cap $30,000
Non-concessional contributions cap $120,000
Division 293 threshold $250,000
Transfer balance cap $2,000,000
Total super balance for NCCs $2,000,000
CGT cap amount $1,780,000
Low rate cap amount $235,000
Government co-contribution threshold $45,400 – $60,400

Super contributions tax: 15% (or 30% if Division 293 applies). Calculate your super contributions →

PAYG withholding – weekly tax table

Sample weekly withholding amounts for employees who have claimed the tax-free threshold.

Weekly earnings Tax withheld Effective rate
$350 ($18,200 p.a.) $0 0%
$500 ($26,000 p.a.) $18 3.6%
$750 ($39,000 p.a.) $68 9.1%
$1,000 ($52,000 p.a.) $148 14.8%
$1,500 ($78,000 p.a.) $308 20.5%
$2,000 ($104,000 p.a.) $478 23.9%
$2,500 ($130,000 p.a.) $648 25.9%
$3,000 ($156,000 p.a.) $841 28.0%
$4,000 ($208,000 p.a.) $1,254 31.4%

Amounts include Medicare levy. Actual withholding may vary based on PAYG declarations. Calculate your PAYG withholding →

Key tax dates 2025-26

Date Event
1 July 2025 2025-26 financial year begins
28 July 2025 Q4 BAS due (quarterly lodgers)
28 October 2025 Q1 BAS due
31 October 2025 Individual tax return due (self-lodgers)
28 February 2026 Q2 BAS due
15 May 2026 Tax agent lodgement deadline (most clients)
28 May 2026 Q3 BAS due
30 June 2026 2025-26 financial year ends

Frequently asked questions

What are the tax brackets for 2025-26?

For 2025-26, Australian residents pay: 0% on $0-$18,200, 16% on $18,201-$45,000, 30% on $45,001-$135,000, 37% on $135,001-$190,000, and 45% on income over $190,000. Plus 2% Medicare levy on most taxable income.

What is the tax-free threshold?

The tax-free threshold is $18,200 for Australian residents. If you earn less than this amount, you pay no income tax. This threshold has remained unchanged since 2012-13.

When do the Stage 3 tax cuts apply?

The Stage 3 tax cuts took effect from 1 July 2024 and continue for 2025-26. Key changes included reducing the 19% rate to 16%, reducing 32.5% to 30%, and increasing the thresholds for the 37% and 45% brackets.

What is the Medicare levy?

The Medicare levy is 2% of your taxable income, used to fund Australia's public health system. Low-income earners may qualify for a reduction or exemption. High earners without private hospital cover pay the Medicare Levy Surcharge (1-1.5%) on top.

What is the HELP repayment threshold?

For 2025-26, compulsory HELP repayments start when your repayment income exceeds $67,000. The new marginal rate system means you only pay on income above this threshold (15-17%), not a flat rate on your total income. Maximum rate is 10% for incomes above $179,286.

Related tax references