Tax brackets Australia 2025-26: Australian tax rates guide
Australian tax brackets for 2025-26 are 0% up to $18,200, then 16%, 30%, 37%, and 45% as taxable income rises for residents. Use this page as a quick ATO-aligned reference for tax brackets Australia, the $18,200 tax-free threshold, resident vs foreign resident rates, and how the Medicare levy calculator & thresholds fit into your total estimate before checking a full result in the calculator.
Quick answers
- What are the tax brackets in Australia? For residents in 2025-26 they are 0% up to $18,200, then 16%, 30%, 37%, and 45% as income rises.
- Australian residents generally get the $18,200 tax-free threshold.
- The 2025-26 Australian resident tax brackets start at 16%, then 30%, 37%, and 45% as taxable income rises.
- The Medicare levy calculator & thresholds are separate from income tax, and the standard resident levy is generally 2%.
- Foreign residents use different tax rates and generally do not get the tax-free threshold.
- For a full estimate including levy, MLS and HECS/HELP, use the take-home pay calculator.
Tax brackets Australia at a glance
If you are searching for tax brackets Australia or Australian tax rates, the main thing to know is that Australia uses a progressive tax system. As taxable income moves into a higher bracket, only the income inside that bracket is taxed at the higher rate.
That means moving into a higher bracket does not cause all of your income to be taxed at the top rate. The tables below show the current ATO-aligned rates for residents and foreign residents.
1) Taxable income (what gets taxed)
Your taxable income is broadly your assessable income minus eligible deductions.
In OzMoneyTools we currently estimate:
taxable income ≈ cash salary − deductions.
Some offsets, rebates, and special cases aren’t modelled yet (so treat this as an estimate, not tax advice).
2) Resident vs foreign resident
The ATO has different tax tables depending on your tax residency.
- Australian residents can generally access the tax‑free threshold.
- Foreign residents generally don’t get the tax‑free threshold and use different rates.
- Foreign residents are generally not required to pay the Medicare levy.
3) Australian resident tax rates (2025–26)
These are the ATO resident tax brackets for the full year (not including Medicare levy of 2%).
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
4) Foreign resident tax rates (2025–26)
Foreign residents use different tax rates and generally don’t pay Medicare levy.
| Taxable income | Tax on this income |
|---|---|
| $0 – $135,000 | 30c for each $1 |
| $135,001 – $190,000 | $40,500 plus 37c for each $1 over $135,000 |
| $190,001 and over | $60,850 plus 45c for each $1 over $190,000 |
5) Related guides for tax, levy and pay checks
FAQ
What are the tax brackets in Australia for 2025-26?
What are the Australian resident tax rates for 2025-26?
What is the tax-free threshold in Australia?
Is the Medicare levy included in the tax tables above?
Do foreign residents get the tax-free threshold?
Why does my payslip withholding differ from an annual estimate?
Does OzMoneyTools include every offset and exemption?
Sources
- ATO resident tax rates: ato.gov.au
- ATO foreign resident tax rates: ato.gov.au