Australia taxes income in brackets: each slice of your income is taxed at its own rate, so a pay rise never leaves you worse off. On top of income tax most people pay the 2% Medicare levy, and some also repay a study loan.
Tax rates for 2026–27
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
These are resident rates for someone who is an Australian resident for the whole year. The rate on the second bracket fell from 16% to 15% on 1 July 2026, and is legislated to fall to 14% on 1 July 2027. Earlier years are listed in tax brackets by year. At $80,000 that is worth $268 a year.
The low income tax offset
If your taxable income is $37,500 or less you get a $700 offset, which reduces the tax you owe. It phases out gradually and stops at $66,667. You don't need to claim it; it's applied when your return is assessed.
The Medicare levy
Most residents pay a 2% Medicare levy on taxable income. People on low incomes pay a reduced levy or none. Higher earners without private hospital cover may also pay the Medicare levy surcharge, which isn't included here.
Examples at common salaries
| Salary | Income tax | Medicare | Take-home | Share taken |
|---|---|---|---|---|
| $45,000 | $3,695 | $900 | $40,405 | 10.2% |
| $60,000 | $8,420 | $1,200 | $50,380 | 16.0% |
| $80,000 | $14,520 | $1,600 | $63,880 | 20.2% |
| $100,000 | $20,520 | $2,000 | $77,480 | 22.5% |
| $120,000 | $26,520 | $2,400 | $91,080 | 24.1% |
| $150,000 | $36,570 | $3,000 | $110,430 | 26.4% |
| $200,000 | $55,870 | $4,000 | $140,130 | 29.9% |
These figures assume no deductions, no other income and no HELP debt. Pick any salary in the salary after tax table for the full breakdown.
Paid hourly or weekly? The take-home pay calculator converts any pay rate and includes HECS-HELP and super.