Australian tax rates 2026–27
The rates, thresholds and offsets every figure on this site's Australian pages is worked out from, each with the document it comes from.
Standard deduction for work-related expenses
| Item | Value |
|---|---|
| Deducted from your income before tax | $1,000 |
| Never more than | Your pay from work |
Every employee gets it without claiming anything (Income Tax Assessment Act 1997 s.25-130). It lowers the taxable income that income tax, the Medicare levy and study loan repayments are worked out on. If you claim actual work-related expenses, it is reduced by what you claim.
Resident income tax rates
| Taxable income for the year | Rate |
|---|---|
| Up to $18,200 | Nil |
| $18,200 to $45,000 | 15% |
| $45,000 to $135,000 | 30% |
| $135,000 to $190,000 | 37% |
| Over $190,000 | 45% |
Each rate applies only to the part of your taxable income inside its bracket. These are the rates for Australian residents for tax purposes.
Low Income tax offset
| Taxable income for the year | Offset |
|---|---|
| Up to $37,500 | $700 |
| $37,500 to $45,000 | $700, less 5% of income over $37,500 |
| $45,000 to $66,667 | $325, less 1.5% of income over $45,000 |
The offset comes off your income tax, never off the Medicare levy, and cannot take your income tax below nil. Above $66,667 there is no offset.
Medicare levy
| Item | Value |
|---|---|
| Levy rate on taxable income | 2% |
| No levy at or below | $28,011 |
| Above that | No more than 10% of the income over the threshold, up to $35,013 |
Families, the Medicare levy surcharge and exemptions have their own rules, which these pages do not cover yet.
HELP and other study loan repayments
| Taxable income for the year | Compulsory repayment |
|---|---|
| Up to $69,528 | Nil |
| $69,528 to $129,717 | 15% of income over $69,528 |
| Over $129,717 | 15% of income from $69,528 to $129,717, plus 17% of income over $129,717 |
Worked out on repayment income, and never more than 10% of it. A repayment also stops when the debt is repaid; these pages do not ask how much you owe, so they show the full compulsory repayment for the income.
Compulsory employer super
| Item | Value |
|---|---|
| Rate on qualifying earnings | 12% |
Paid by your employer into your super fund on top of your pay. It is not taken from your pay and does not change your take-home.
Common questions
How is income tax worked out in Australia?
As a resident you pay nothing on the first $18,200 of taxable income. Above it the rate starts at 15% and rises through the scale's brackets to 45% on income over $190,000. Only the part of your income inside each bracket is taxed at that bracket's rate.
What is the Low Income tax offset?
An offset of up to $700 that comes off your income tax, never off the Medicare levy. It is the full amount up to $37,500 of taxable income, then reduces until it reaches nothing at $66,667. It cannot take your income tax below nil.
How much is the Medicare levy?
2% of your taxable income. There is none at or below $28,011; above that it is shaded in, so it is never more than 10% of your income over that threshold, until it reaches the full rate at $35,013.
MyNetIncome gives estimates, not tax or financial advice. Figures follow the Australian Taxation Office's rules for the 2026–27 income year; your payslip can differ because of how your employer withholds tax, your pay dates or deductions this page does not ask about. Not affiliated with or endorsed by the ATO.Estimates, not tax or financial advice. Your payslip can differ. Not affiliated with the ATO.