Australia income tax brackets — 2026-27 calculator
Australia's tax year runs July to June, not calendar year. Tax-free threshold of A$18,200 plus four progressive brackets to 45%. Medicare Levy adds another 2% on top.
Tax year: 2026-27 (FY ending 30 June) · Filing status: Resident individual
Calculate income tax for Australia
Type your gross annual income. The calculator runs it through the progressive brackets and returns tax owed plus effective rate.
Bracket schedule for 2026-27 (FY ending 30 June)
| Bracket | Range | Rate |
|---|---|---|
| Tax-free threshold | A$0 — A$18,200 | 0% |
| Lower bracket | A$18,200 — A$45,000 | 16% |
| Mid bracket | A$45,000 — A$135,000 | 30% |
| Upper bracket | A$135,000 — A$190,000 | 37% |
| Top bracket | A$190,000 — and above | 45% |
The 2026-27 Australian resident brackets
Australia's tax year runs from 1 July to 30 June (not the calendar year). The 2026-27 brackets reflect the Stage 3 tax cuts that took effect in July 2024:
- 0%: A$0–A$18,200 — the tax-free threshold.
- 16%: A$18,200–A$45,000 — reduced from 19% under Stage 3.
- 30%: A$45,000–A$135,000 — reduced from 32.5% under Stage 3; threshold lowered from A$120,000.
- 37%: A$135,000–A$190,000 — threshold raised from A$135,000 under Stage 3.
- 45%: above A$190,000 — threshold raised from A$180,000.
Worked example: an Australian resident with A$80,000 of taxable income in 2026-27:
- A$0–A$18,200 at 0% = A$0
- A$18,200–A$45,000 at 16% = A$4,288
- A$45,000–A$80,000 at 30% = A$10,500
- Total income tax: A$14,788
- Marginal rate: 30%, effective rate: 18.5%
Medicare Levy and the surcharge
On top of income tax, Australian residents pay a Medicare Levy of 2% of taxable income — partly funding the public healthcare system. The levy has limited exemptions for low-income earners.
High earners without private hospital insurance pay an additional Medicare Levy Surcharge of 1-1.5% (depending on income tier above A$97,000 single / A$194,000 family). The surcharge is designed to push high-income earners to private insurance, which is consistently cheaper than the surcharge for most earners above the threshold.
Superannuation: the third element
Australian employers must contribute a percentage of an employee's ordinary earnings to a superannuation (retirement) fund. The Super Guarantee rate in 2026 is 12% — up from 11.5% in 2025, per the legislated phase-in to 12%. Super contributions are taxed at a flat 15% on entry to the fund (concessional contributions cap A$30,000/year), but not included in the employee's personal income tax return. This is functionally a parallel tax-favoured savings system layered on top of the income-tax structure.
What's NOT in this calculator
- Medicare Levy (2%) and surcharge (1-1.5%) — paid on top of income tax.
- Superannuation contributions — employer responsibility, taxed within the fund.
- HECS/HELP repayments — student loan repayments, calculated as a percentage of income above thresholds.
- GST (10%) — separate consumption tax. Covered in our Australia GST calculator.
Non-resident and working-holiday rates
The brackets above are for Australian tax residents. Non-residents and working-holiday-maker visa holders pay different (typically higher) rates with no tax-free threshold. A 417/462 visa holder pays 15% from the first dollar up to A$45,000, then transitions to the resident scale. The distinction matters for the many international workers in Australia each year.
Frequently asked questions
What are the Australian tax brackets for 2026-27?
Tax-free up to A$18,200, then 16% to A$45,000, 30% to A$135,000, 37% to A$190,000, and 45% above. These reflect the Stage 3 cuts that took effect 1 July 2024, raising thresholds and reducing some bracket rates.
What is the Stage 3 tax cut?
A package of personal income tax reductions legislated in 2018 and modified in 2024 before taking effect. The 2024-25 changes lowered the 32.5% rate to 30%, raised the 37% threshold from A$120,000 to A$135,000, and lowered the entry-level 19% rate to 16%. Originally Stage 3 would have eliminated the 37% bracket entirely; that part was scaled back.
What is the Medicare Levy?
A 2% levy on most Australian residents' taxable income, funding part of the public healthcare system. Low-income earners get partial or full exemptions. The levy is calculated separately from income tax and applied to taxable income above the threshold (~A$24,300 single in 2026).
Does this include super contributions?
No. Australian employer super contributions (12% from July 2025) are funded by the employer, taxed at 15% within the super fund, and not included in personal income-tax returns. Total compensation in Australia is typically quoted as "package including super" or "base plus super" — the distinction matters for comparing job offers.
Why does Australia's tax year end on 30 June?
Historical alignment with the British fiscal year, which Australia inherited at federation. The 30 June year-end shapes Australian financial life in many ways — superannuation contribution caps, tax-return deadlines (31 October), and end-of-financial-year (EOFY) retail sales all hinge on this date.