---
title: "Australian tax brackets 2026–27 and 2025–26 | TaxCalcTool"
description: "Understand how Australian resident income tax bands work, why a higher bracket does not apply to every dollar, and what the headline rates leave out."
canonical: "https://taxcalctool.com/australia/tax-brackets/"
---

Canonical page: https://taxcalctool.com/australia/tax-brackets/

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# Australian tax brackets 2026–27 and 2025–26

A higher tax bracket applies only to the income in that band. Find the resident rates below, then see how offsets, Medicare and HELP change a salary estimate.

## Australian resident tax brackets

Rates apply to each portion of taxable income. Medicare, the low income tax offset and HELP repayments are separate.

2026–27 resident income tax rates
| Taxable income band (AUD) | Marginal rate |
| --- | --- |
| $0 to $18,200 | 0% |
| Over $18,200 to $45,000 | 15% |
| Over $45,000 to $135,000 | 30% |
| Over $135,000 to $190,000 | 37% |
| Over $190,000 | 45% |

2025–26 resident income tax rates
| Taxable income band (AUD) | Marginal rate |
| --- | --- |
| $0 to $18,200 | 0% |
| Over $18,200 to $45,000 | 16% |
| Over $45,000 to $135,000 | 30% |
| Over $135,000 to $190,000 | 37% |
| Over $190,000 | 45% |

[Source: Income Tax Rates Act, Schedule 7](https://taxcalctool.com/sources/#au-resident-rates) . [Calculate tax on your salary](https://taxcalctool.com/australia/income-tax/) .

## Each band applies to part of your income

The resident scale starts with a tax-free band and then applies different rates to successive portions of taxable income. The calculator adds the tax from the bands your income reaches.

A marginal income tax rate describes the rate on the next dollar within a band. It is different from dividing the total estimated liabilities by your entire salary.

[Australian pay rise calculator: compare after-tax pay](https://taxcalctool.com/australia/pay-rise/)

## Read the breakdown alongside the headline

The tax-bracket calculation comes before the included low income tax offset. Medicare levy, Medicare levy surcharge and compulsory HELP repayments are then separate calculations.

Use the result labels carefully: an effective rate including those items answers a broader question than an income-tax-only average rate. Neither rate tells you the payroll withholding on a particular payment.

## Match both year and residency

This calculator provides the supported Australian resident years shown in its selector. A later rate change has its own start date; announcing a change does not make it apply to every year.

Foreign residents, working holiday makers and part-year residents require a different calculation. An Australian address or citizenship alone is not the profile confirmation this tool needs.

## Common questions

## Read the official guidance

- [Australian resident income tax rates — legislation](https://www.legislation.gov.au/C2004A03348/2026-07-01/2026-07-01/text/original/epub/OEBPS/document_1/document_1.html)
- [ATO: Tax calculation and non-refundable offsets](https://www.ato.gov.au/api/public/content/0-d300e446-ea4e-4046-a021-0dd9072e26ab)

For exact rule sections and effective dates, see the [source register](https://taxcalctool.com/sources/) .

## Your next question

- [Australian pay rise calculator: compare after-tax pay](https://taxcalctool.com/australia/pay-rise/)
- [Low income tax offset calculator (LITO)](https://taxcalctool.com/australia/low-income-tax-offset/)
- [How TaxCalcTool calculates an estimate](https://taxcalctool.com/methodology/)

[All Australian tax tools and guides](https://taxcalctool.com/australia/)