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
Income Tax Calculator Enter your salary and see the exact breakdown Marginal Tax Rates Understand effective vs marginal rates on your income Tax Return Calculator Estimate your refund or tax owing before you lodge

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 (shade-in)
Singles Up to $27,222 $27,223 – $34,027
Families Up to $45,907 $45,908 – $57,383
Seniors (single, SAPTO) Up to $43,020 $43,021 – $53,775
Seniors (family, SAPTO) Up to $59,886 $59,887 – $74,857

Family lower threshold increases by $4,216 and upper threshold by $5,270 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 income thresholds $47,488 – $62,488

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 → For fortnightly-specific lookup amounts, see the fortnightly tax table 2026.

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

Lodge on time and get your refund sooner. Use the tax return calculator to estimate your refund or tax owing before you lodge.

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


Last updated 29 April 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

Read our methodology →