Australian tax rates 2026-27
Every rate and threshold you need for the 2026-27 financial year (1 July 2026 to 30 June 2027), with last year's figures for comparison.
Resident tax rates 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 |
The Medicare levy of 2% is added on top.
Rates across three years
| Bracket | 2025-26 | 2026-27 | 2027-28 |
|---|---|---|---|
| $0 – $18,200 | 0% | 0% | 0% |
| $18,201 – $45,000 | 16% | 15% | 14% |
| $45,001 – $135,000 | 30% | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% | 37% |
| $190,001 + | 45% | 45% | 45% |
Anyone earning over $45,000 saves $268 in 2026-27 and $536 in 2027-28 compared with 2025-26.
Foreign residents and working holiday makers
| Taxable income | Foreign resident | Working holiday maker |
|---|---|---|
| $0 – $45,000 | 30% | 15% |
| $45,001 – $135,000 | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% |
| $190,001 + | 45% | 45% |
Neither group pays the Medicare levy or gets the tax-free threshold.
Medicare levy and surcharge
- Medicare levy: 2% of taxable income. Singles earning $28,011 or less pay nothing; it phases in up to $35,013 (2025-26 thresholds).
- Medicare levy surcharge (singles, no private hospital cover):
| Income for MLS purposes | 2025-26 | 2026-27 |
|---|---|---|
| Base tier | $101,000 or less: 0% | $105,000 or less: 0% |
| Tier 1 | $101,001 – $118,000: 1% | $105,001 – ~$123,000: 1% |
| Tier 2 | $118,001 – $158,000: 1.25% | ~$123,001 – $164,000: 1.25% |
| Tier 3 | $158,001 +: 1.5% | $164,001 +: 1.5% |
Family thresholds are double the single amounts, plus $1,500 for each dependent child after the first.
Offsets, HECS and super
| Item | 2026-27 |
|---|---|
| Low income tax offset (LITO) | Up to $700; reduces from $37,500 and cuts out at $66,667 |
| HELP repayment threshold | $69,528 (15c per $1 above, 17c above $129,717) |
| Super guarantee | 12% of ordinary time earnings |
| Concessional contributions cap | $32,500 (was $30,000) |
| Contributions tax in super | 15% |
Rates are from the ATO and legislation as at October 2026. Where the 2026-27 figure hadn’t been published (Medicare levy low-income threshold, middle MLS tier), we use the latest available figure and mark it.
Frequently asked questions
What are the tax brackets for 2026-27?
$0–$18,200: nil. $18,201–$45,000: 15%. $45,001–$135,000: $4,020 plus 30% over $45,000. $135,001–$190,000: $31,020 plus 37% over $135,000. Over $190,000: $51,370 plus 45% over $190,000.
What changed on 1 July 2026?
The lowest rate fell from 16% to 15%. It falls again to 14% from 1 July 2027. All other brackets are unchanged.
What is the tax-free threshold?
$18,200 for Australian residents. Foreign residents and working holiday makers don't get a tax-free threshold.
What is the Medicare levy surcharge threshold for 2026-27?
$105,000 for singles. Above that, people without private hospital cover pay 1% to 1.5% extra.