Capital gains are taxed at your income tax rate, not a separate CGT rate. Here's the effective rate at each income level for 2026–27, and a calculator.
Key facts
- Australia has no separate capital gains tax rate: a net capital gain is added to your taxable income and taxed at your marginal rate, plus the Medicare levy.
- If you owned the asset for at least 12 months, individuals and Australian trusts pay tax on only half the gain (the 50% CGT discount); complying super funds get a one-third discount.
- So the effective rate for an individual ranges from 0% to 23.5% of the whole gain at 2026–27 rates (47% without the discount).
- Companies don't get the discount: gains are taxed at the company rate of 30%, or 25% for base rate entities.
- From 1 July 2027 the 50% discount is replaced by cost base indexation and a 30% minimum tax for gains accruing after that date (now law).
Effective CGT rate by tax bracket (2026–27)
| Taxable income | Marginal rate | With Medicare levy | Effective rate after the 50% discount |
|---|---|---|---|
| $0 to $18,200 | 0% | 0% | 0% |
| $18,201 to $45,000 | 15% | 17% | 8.5% |
| $45,001 to $135,000 | 30% | 32% | 16% |
| $135,001 to $190,000 | 37% | 39% | 19.5% |
| Over $190,000 | 45% | 47% | 23.5% |
The Medicare levy is reduced or nil on low incomes, and the low income tax offset also changes the rate at low incomes; the calculator includes both.
Tax on a $50,000 gain
| Other taxable income | Tax (held 12 months+) | Effective rate | Tax (held under 12 months) |
|---|---|---|---|
| $40,000 | $7,800.00 | 15.60% | $15,825.00 |
| $90,000 | $8,000.00 | 16.00% | $16,350.00 |
| $150,000 | $9,750.00 | 19.50% | $20,300.00 |
| $250,000 | $11,750.00 | 23.50% | $23,500.00 |
Common questions
What is the capital gains tax rate in Australia?
There isn't a flat rate. The gain is taxed at your marginal rate plus the 2% Medicare levy, and individuals pay tax on only half the gain after 12 months, so the effective rate is between 0% and 23.5%.
How much CGT will I pay on $50,000?
With $90,000 of other income and the 50% discount, about $8,000.00 in 2026–27, an effective rate of 16.00%.
Do companies get the CGT discount?
No. A company pays 30% (or 25% as a base rate entity) on the whole gain.
Is the CGT discount changing?
Yes. From 1 July 2027 it's replaced by indexation of the cost base and a 30% minimum tax on capital gains, for the part of a gain that accrues after that date. Gains up to then keep the 50% discount.
See also the capital gains tax calculator, the CGT 6-year rule and tax brackets.
Sources: ATO CGT discount, resident tax rates, company tax rates and CGT reform. General information, not tax advice.