2025-26 Australian Tax Brackets

Australian resident tax brackets, 2025-26

These figures apply to the 2025-26 income year (1 July 2025 to 30 June 2026) and do not include the Medicare Levy, which is calculated separately (see below). They are unchanged from the 2024-25 income year.

Foreign resident tax brackets, 2025-26

Foreign residents have no tax-free threshold; the 30% rate applies from the very first dollar of Australian-sourced income. Foreign residents also do not pay the Medicare Levy. Rates converge with resident rates above $135,000 (both groups pay 37%, then 45%, on income above that point).

Medicare Levy thresholds, 2025-26 (residents only)

These are the single-person thresholds; families and seniors/pensioners have higher thresholds. See the dedicated Medicare Levy calculator for a full breakdown of your own figure, including the shade-in calculation.

Scheduled future rate changes

Two further tax cuts are already legislated for coming income years, both targeting the same bracket:

• From 1 July 2026 (2026-27 income year): the rate on taxable income between $18,201 and $45,000 drops from 16% to 15%.
• From 1 July 2027 (2027-28 income year): that same bracket's rate drops further, from 15% to 14%.
• All other bracket thresholds and rates (30%, 37%, 45%, and the $18,200 tax-free threshold itself) are not currently scheduled to change alongside these cuts.

How to read a cumulative tax bracket table

ATO bracket tables are written in cumulative form to make manual calculation easier: instead of asking you to add up tax across every bracket by hand, each row already includes the tax owed on all the lower brackets combined, plus a marginal rate for the remainder. For example, the $45,001–$135,000 row says "$4,288 plus 30c for each $1 over $45,000"; the $4,288 is simply the total tax already calculated for the first two brackets ($0 tax-free plus 16% on the $18,201–$45,000 slice), so you only need to calculate the 30% portion yourself and add it on.

This calculator's income tax calculator does exactly this same cumulative calculation automatically, and additionally shows you a full row-by-row breakdown of how much tax comes from each individual bracket, useful for understanding not just the total, but exactly where it comes from.

Why brackets are labelled with two years

Australia's tax (financial) year runs from 1 July to 30 June, which doesn't align with the calendar year; so tax brackets are conventionally labelled with both years they span, like "2025-26" for the year starting 1 July 2025 and ending 30 June 2026. This is why you'll often see Australian tax figures described as "the 2025-26 rates" rather than just "2026 rates" the way some other countries label their tax years.

Resident vs. foreign resident: a side-by-side comparison

Placing the two tables next to each other makes the practical difference clearer than reading them separately. On a taxable income of $60,000, a resident pays $8,788 in income tax (thanks to the $18,200 tax-free threshold and the lower 16% starting rate) before the Medicare Levy is even added, while a foreign resident on the identical $60,000 pays a flat $18,000, almost double, because every one of those dollars is taxed at 30% with no tax-free slice at all.

That gap narrows the higher you go, because both tables converge to the same 37% and 45% marginal rates above $135,000; at very high incomes, the dollar difference between resident and foreign resident tax becomes proportionally smaller, even though residents still come out ahead due to the tax-free threshold applying to the lowest slice of every resident's income, foreign or not.

Determining which table applies to you depends on the ATO's residency tests, not your visa type or nationality; someone can be an Australian citizen and still be a foreign resident for tax purposes in a given year (for example, if they've genuinely relocated overseas), and conversely a temporary visa holder living and working in Australia can be a resident for tax purposes. Every figure on this site is calculated locally in your browser; see the privacy page for details.