Australian resident tax rates for 2026-27
Income up to A$18,200 is tax-free. Above it, the rates run from 15% to 45%; the table is written the way the tax office writes it.
From 1 July 2026 the $18,201–45,000 band fell from 16% to 15%, and a further cut to 14% in July 2027 is already legislated. From 2026-27 every employee can also deduct a $1,000 standard amount for work-related expenses without receipts; it is applied automatically here — if your itemised work expenses are higher, enter only the part above $1,000 under "other deductions". The low income tax offset (up to $700, phasing out between $37,500 and $66,667) is included. The 2% Medicare levy is charged separately on taxable income and phases in between $28,011 and $35,013. The Medicare levy surcharge for higher earners without private cover (1–1.5%) and HECS-HELP student repayments are not included.
| Taxable income | Tax on this income |
|---|---|
| up to A$18,200 | Nil |
| A$18,201–A$45,000 | 15c for each $1 over A$18,200 |
| A$45,001–A$135,000 | A$4,020 plus 30c for each $1 over A$45,000 |
| A$135,001–A$190,000 | A$31,020 plus 37c for each $1 over A$135,000 |
| over A$190,000 | A$51,370 plus 45c for each $1 over A$190,000 |
Offsets, the Medicare levy and the standard deduction
The low income tax offset takes up to A$700 off the tax; it starts shrinking above A$37,500 and is gone at A$66,667.
The Medicare levy is 2% of taxable income, phased in between A$28,011 and A$35,013. From 2026-27 every employee can also deduct A$1,000 of work expenses without receipts.
| Salary | Income tax after offset | Medicare levy | Take-home |
|---|---|---|---|
| A$30,000 | A$920 | A$98.90 | A$28,981.10 |
| A$40,000 | A$2,495 | A$780 | A$36,725 |
| A$50,000 | A$4,955 | A$980 | A$44,065 |
Tax and take-home pay at different salaries
Worked out with the calculator above for a resident employee without the Medicare levy surcharge or study loan repayments.
| Salary | Income tax | Medicare levy | Take-home | Effective rate | Marginal rate |
|---|---|---|---|---|---|
| A$20,000 | A$0 | A$0 | A$20,000 | 0% | 15% |
| A$40,000 | A$2,495 | A$780 | A$36,725 | 6.24% | 15% |
| A$60,000 | A$8,105 | A$1,180 | A$50,715 | 13.51% | 30% |
| A$100,000 | A$20,220 | A$1,980 | A$77,800 | 20.22% | 30% |
| A$200,000 | A$55,420 | A$3,980 | A$140,600 | 27.71% | 45% |