Australian Tax Brackets 2025-26
How much income tax you pay depends on which bracket your taxable income falls into. Australia uses progressive rates — you only pay the higher rate on income above each threshold, not on everything.
Resident Tax Rates
| Taxable Income | Rate | Tax on This Bracket |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 16% | $0 + 16c per $1 over $18,201 |
| $45,001 – $135,000 | 30% | $4,288 + 30c per $1 over $45,001 |
| $135,001 – $190,000 | 37% | $31,288 + 37c per $1 over $135,001 |
| $190,001+ | 45% | $51,638 + 45c per $1 over $190,001 |
Plus 2% Medicare Levy for most residents. Source: ATO
Non-Resident Tax Rates
| Taxable Income | Rate |
|---|---|
| $0 – $135,000 | 32.5% |
| $135,001 – $190,000 | 37.0% |
| $190,001+ | 45.0% |
Non-residents have no tax-free threshold and do not pay Medicare Levy.