Australian guide
Australian Income Tax Rates 2026–27: Tax Brackets
The current 2026–27 Australian resident income tax brackets, effective from 1 July 2026. These rates are marginal: moving into a higher bracket does not make all of your income taxable at the higher rate.
Last reviewed: 13/08/2026
Resident income tax brackets for 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 table is for Australian resident individual income tax before offsets and does not include the Medicare levy.
What changed on 1 July 2026?
The rate on taxable income between $18,201 and $45,000 fell from 16% to 15%. For a taxpayer earning at least $45,000, that one-percentage-point reduction is worth up to $268 across a full year compared with the previous rate settings.
How marginal tax rates work
Each rate only applies to the part of your taxable income inside that bracket. For example, income above $45,000 is taxed at 30% until the next threshold, while the lower portions of income keep their lower rates.
That is why entering a higher bracket never means the higher percentage suddenly applies to every dollar you earned.
What about the Medicare levy?
The standard Medicare levy rate is 2%, but actual liability can be reduced or exempt in some circumstances. The tax-bracket table above excludes the levy so you can see the income-tax calculation separately.
Calculate your own 2026–27 estimate
Enter your income in CalcAussie's Australian Income Tax Calculator to apply these brackets automatically and see estimated tax and take-home income.
Open the Income Tax CalculatorOfficial sources
CalcAussie reviews these pages against current Australian Government guidance.
General information only. This guide does not take your personal tax, financial or employment circumstances into account.