Which tax rates apply to my 2025-26 return?

The 2025-26 resident rates apply: nil to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000, then 45%. These are the rates for income earned between 1 July 2025 and 30 June 2026.

Do these brackets include the Medicare levy?

No. The bracket rates are income tax only. The 2% Medicare levy is separate and sits on top. Low-income earners paid a reduced levy or none, depending on the 2025-26 thresholds.

How do the 2025-26 rates differ from this year's?

The bands are the same. The rate on the $18,201 to $45,000 band was 16% in 2025-26. From 1 July 2026 it fell to 15%, worth up to $268 a year. A cut to 14% is legislated from 1 July 2027.

Australian income tax brackets 2025–26

The rates below are the ones your 2025-26 return is assessed under. The financial year ran from 1 July 2025 to 30 June 2026, and returns lodge from July 2026. For Australian residents, the first $18,200 was tax-free. Income from $18,201 to $45,000 was taxed at 16%. From $45,001 to $135,000 it was 30%. From $135,001 to $190,000 it was 37%. Anything above $190,000 was taxed at 45%. These are marginal rates. Each rate applies only to the income that falls inside its band, not to your whole income. Tax at the band ceilings was $4,288 at $45,000, $31,288 at $135,000 and $51,638 at $190,000.

Resident tax rates 2025–26 (income tax only — Medicare levy separate)
Taxable income	Rate	Tax at band ceiling
$0 – $18,200	Nil	$0
$18,201 – $45,000	16%	$4,288
$45,001 – $135,000	30%	$31,288
$135,001 – $190,000	37%	$51,638
$190,001 and over	45%	—

What changed

The 2025-26 brackets did not change from 2024-25. The year's big moves were elsewhere. HECS and HELP shifted to a new marginal repayment system, and the super guarantee reached its final legislated rate of 12% on 1 July 2025. The brackets moved next. From 1 July 2026, the start of the 2026-27 year, the 16% rate fell to 15%, worth up to $268 a year.

Compare with 2024–25

Band	2024–25	2025–26
$0 – $18,200	Nil	Nil
$18,201 – $45,000	16%	16%
$45,001 – $135,000	30%	30%
$135,001 – $190,000	37%	37%
$190,001 and over	45%	45%

Other years

2026–27 (current)

See what these rates mean for your pay: try the take-home calculator or jump straight to a salary, e.g. $70,000, $85,000, $100,000.

Frequently asked

Which tax rates apply to my 2025-26 return?: The 2025-26 resident rates apply: nil to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000, then 45%. These are the rates for income earned between 1 July 2025 and 30 June 2026.
Do these brackets include the Medicare levy?: No. The bracket rates are income tax only. The 2% Medicare levy is separate and sits on top. Low-income earners paid a reduced levy or none, depending on the 2025-26 thresholds.
How do the 2025-26 rates differ from this year's?: The bands are the same. The rate on the $18,201 to $45,000 band was 16% in 2025-26. From 1 July 2026 it fell to 15%, worth up to $268 a year. A cut to 14% is legislated from 1 July 2027.