Australia has five income tax brackets for residents in 2026–27: 0%, 15%, 30%, 37% and 45%. The 15% rate is new this year (it was 16% in 2025–26) and is legislated to fall to 14% from 1 July 2027. Below are the current brackets, next year's, and every year back to 2015–16.
Tax brackets 2026–27
For Australian residents, 1 July 2026 to 30 June 2027.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 15% | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $51,370 plus 45c for each $1 over $190,000 |
The Medicare levy of 2% is charged on top for most people, and the low income tax offset of up to $700 reduces tax for incomes under $66,667.
How tax brackets work
Each rate only applies to the slice of income inside its bracket. Moving into a higher bracket never reduces your take-home pay: only the dollars above the threshold are taxed at the higher rate. Your marginal rate is the rate on your last dollar; your average rate is much lower.
Here is the income tax on a taxable income of $80,000 in 2026–27:
| Income slice | Rate | Tax |
|---|---|---|
| First $18,200 | 0% | $0 |
| $18,201 – $45,000 | 15% | $4,020 |
| $45,001 – $80,000 | 30% | $10,500 |
| Total income tax | $14,520 |
So someone on $80,000 is in the 30% bracket, but pays 18.1% of their income in income tax. Add the Medicare levy and they take home $63,880 a year. See $80,000 after tax for the full breakdown.
What's your take-home pay? The pay calculator applies these brackets, the low income tax offset, Medicare and HECS-HELP to your salary or hourly rate.
Tax brackets 2027–28
Legislated: the 15% rate falls to 14% from 1 July 2027.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 14% | 14c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $3,752 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $30,752 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $51,102 plus 45c for each $1 over $190,000 |
Tax on the same salary, year by year
Income tax on the same salary in each year, before offsets, the Medicare levy or any levies. It shows how tax cuts have changed the bill on a typical income.
| Year | $50,000 | $80,000 | $120,000 | $200,000 |
|---|---|---|---|---|
| 2027–28 | $5,252 | $14,252 | $26,252 | $55,602 |
| 2026–27 | $5,520 | $14,520 | $26,520 | $55,870 |
| 2025–26 | $5,788 | $14,788 | $26,788 | $56,138 |
| 2024–25 | $5,788 | $14,788 | $26,788 | $56,138 |
| 2023–24 | $6,717 | $16,467 | $29,467 | $60,667 |
| 2022–23 | $6,717 | $16,467 | $29,467 | $60,667 |
| 2021–22 | $6,717 | $16,467 | $29,467 | $60,667 |
| 2020–21 | $6,717 | $16,467 | $29,467 | $60,667 |
| 2019–20 | $7,797 | $17,547 | $31,897 | $63,097 |
| 2018–19 | $7,797 | $17,547 | $31,897 | $63,097 |
| 2017–18 | $7,797 | $17,547 | $32,032 | $63,232 |
| 2016–17 | $7,797 | $17,547 | $32,032 | $63,232 |
| 2015–16 | $7,797 | $17,547 | $32,347 | $63,547 |
Figures ignore the low income tax offset, the low and middle income tax offset (2018–19 to 2021–22) and the temporary budget repair levy (2014–15 to 2016–17). They are rounded to the nearest dollar.
Tax brackets in earlier years
Jump to: 2027–28 · 2026–27 · 2025–26 · 2024–25 · 2023–24 · 2022–23 · 2021–22 · 2020–21 · 2019–20 · 2018–19 · 2017–18 · 2016–17 · 2015–16
2025–26
No change to rates or thresholds.
| Taxable income | 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 |
2024–25
Stage 3 tax cuts: 19% cut to 16%, 32.5% cut to 30%, and the 37% and 45% thresholds lifted to $135,000 and $190,000.
| Taxable income | 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 |
2023–24
No change to rates or thresholds.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 19% | 19c for each $1 over $18,200 |
| $45,001 – $120,000 | 32.5% | $5,092 plus 32.5c for each $1 over $45,000 |
| $120,001 – $180,000 | 37% | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | 45% | $51,667 plus 45c for each $1 over $180,000 |
2022–23
The low and middle income tax offset ended after 2021–22.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 19% | 19c for each $1 over $18,200 |
| $45,001 – $120,000 | 32.5% | $5,092 plus 32.5c for each $1 over $45,000 |
| $120,001 – $180,000 | 37% | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | 45% | $51,667 plus 45c for each $1 over $180,000 |
2021–22
No change to rates or thresholds.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 19% | 19c for each $1 over $18,200 |
| $45,001 – $120,000 | 32.5% | $5,092 plus 32.5c for each $1 over $45,000 |
| $120,001 – $180,000 | 37% | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | 45% | $51,667 plus 45c for each $1 over $180,000 |
2020–21
The 19% bracket was extended to $45,000 and the 32.5% bracket to $120,000.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 19% | 19c for each $1 over $18,200 |
| $45,001 – $120,000 | 32.5% | $5,092 plus 32.5c for each $1 over $45,000 |
| $120,001 – $180,000 | 37% | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | 45% | $51,667 plus 45c for each $1 over $180,000 |
2019–20
No change to rates or thresholds.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $37,000 | 19% | 19c for each $1 over $18,200 |
| $37,001 – $90,000 | 32.5% | $3,572 plus 32.5c for each $1 over $37,000 |
| $90,001 – $180,000 | 37% | $20,797 plus 37c for each $1 over $90,000 |
| $180,001 and over | 45% | $54,097 plus 45c for each $1 over $180,000 |
2018–19
The 32.5% bracket was extended to $90,000, and the low and middle income tax offset began.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $37,000 | 19% | 19c for each $1 over $18,200 |
| $37,001 – $90,000 | 32.5% | $3,572 plus 32.5c for each $1 over $37,000 |
| $90,001 – $180,000 | 37% | $20,797 plus 37c for each $1 over $90,000 |
| $180,001 and over | 45% | $54,097 plus 45c for each $1 over $180,000 |
2017–18
The 2% temporary budget repair levy on income over $180,000 ended on 1 July 2017.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $37,000 | 19% | 19c for each $1 over $18,200 |
| $37,001 – $87,000 | 32.5% | $3,572 plus 32.5c for each $1 over $37,000 |
| $87,001 – $180,000 | 37% | $19,822 plus 37c for each $1 over $87,000 |
| $180,001 and over | 45% | $54,232 plus 45c for each $1 over $180,000 |
2016–17
The 37% threshold rose from $80,000 to $87,000. The 2% temporary budget repair levy on income over $180,000 still applied.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $37,000 | 19% | 19c for each $1 over $18,200 |
| $37,001 – $87,000 | 32.5% | $3,572 plus 32.5c for each $1 over $37,000 |
| $87,001 – $180,000 | 37% | $19,822 plus 37c for each $1 over $87,000 |
| $180,001 and over | 45% | $54,232 plus 45c for each $1 over $180,000 |
2015–16
A temporary budget repair levy of 2% applied to income over $180,000.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $37,000 | 19% | 19c for each $1 over $18,200 |
| $37,001 – $80,000 | 32.5% | $3,572 plus 32.5c for each $1 over $37,000 |
| $80,001 – $180,000 | 37% | $17,547 plus 37c for each $1 over $80,000 |
| $180,001 and over | 45% | $54,547 plus 45c for each $1 over $180,000 |
Notes
- Rates apply to Australian residents for tax purposes who were residents for the whole year. Non-residents and working holiday makers have different rates.
- The Medicare levy of 2% is charged on top of these rates for most people.
- 2027–28 rates are legislated but could still be changed by Parliament before they start.
- Source: ATO, Tax rates – Australian residents.