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.
| 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% |
Resident tax brackets, 2015–16 to 2026–27
| Year | Tax-free to | Rates | Bands end at |
|---|---|---|---|
| 2015–16 | $18,200 | 19% · 32.5% · 37% · 45% | $37,000 · $80,000 · $180,000 |
| 2016–17 | $18,200 | 19% · 32.5% · 37% · 45% | $37,000 · $87,000 · $180,000 |
| 2017–18 | $18,200 | 19% · 32.5% · 37% · 45% | $37,000 · $87,000 · $180,000 |
| 2018–19 | $18,200 | 19% · 32.5% · 37% · 45% | $37,000 · $90,000 · $180,000 |
| 2019–20 | $18,200 | 19% · 32.5% · 37% · 45% | $37,000 · $90,000 · $180,000 |
| 2020–21 | $18,200 | 19% · 32.5% · 37% · 45% | $45,000 · $120,000 · $180,000 |
| 2021–22 | $18,200 | 19% · 32.5% · 37% · 45% | $45,000 · $120,000 · $180,000 |
| 2022–23 | $18,200 | 19% · 32.5% · 37% · 45% | $45,000 · $120,000 · $180,000 |
| 2023–24 | $18,200 | 19% · 32.5% · 37% · 45% | $45,000 · $120,000 · $180,000 |
| 2024–25 | $18,200 | 16% · 30% · 37% · 45% | $45,000 · $135,000 · $190,000 |
| 2025–26 | $18,200 | 16% · 30% · 37% · 45% | $45,000 · $135,000 · $190,000 |
| 2026–27 | $18,200 | 15% · 30% · 37% · 45% | $45,000 · $135,000 · $190,000 |
The tax-free threshold was $18,200 in all 12 years. In 2016–17 the 32.5% band's ceiling rose from $80,000 to $87,000. In 2018–19 the 32.5% band's ceiling rose from $87,000 to $90,000. In 2020–21 the 19% band's ceiling rose from $37,000 to $45,000 and the 32.5% band's ceiling rose from $90,000 to $120,000. In 2024–25 the 19% rate fell to 16%, the 32.5% rate fell to 30%, the 32.5% band's ceiling rose from $120,000 to $135,000 and the 37% band's ceiling rose from $180,000 to $190,000. In 2026–27 the 16% rate fell to 15%. No bracket rate or threshold moved in the other 6 of the 11 year-on-year steps. What this did to the tax on 6 fixed salaries: the same salary, twelve tax years.
Other years
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 2026-27?
- 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.