Australian income tax brackets 2026–27
Australian residents pay income tax in bands for 2026-27. The first $18,200 you earn is tax-free. Income from $18,201 to $45,000 is taxed at 15%. From $45,001 to $135,000 the rate is 30%. From $135,001 to $190,000 it is 37%. Anything above $190,000 is taxed at 45%. Marginal means each rate applies only to the income inside that band, not to your whole salary. So a higher bracket lifts the tax on your top dollars, never on the income below it. Tax owed at the band ceilings is $4,020 at $45,000, $31,020 at $135,000 and $51,370 at $190,000. These figures cover income tax only.
| Taxable income | Rate | Tax at band ceiling |
|---|---|---|
| $0 – $18,200 | Nil | $0 |
| $18,201 – $45,000 | 15% | $4,020 |
| $45,001 – $135,000 | 30% | $31,020 |
| $135,001 – $190,000 | 37% | $51,370 |
| $190,001 and over | 45% | — |
What changed
For 2026-27 the second bracket dropped from 16% to 15%. That saves up to $268 a year for anyone earning $45,000 or more. The 16% rate applied in 2025-26. The same bracket is legislated to fall again to 14% from 1 July 2027, so the tax on income between $18,201 and $45,000 keeps easing.
Compare with 2025–26
| Band | 2025–26 | 2026–27 |
|---|---|---|
| $0 – $18,200 | Nil | Nil |
| $18,201 – $45,000 | 16% | 15% |
| $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
- What are the 2026-27 resident tax brackets?
- Income up to $18,200 is tax-free. From $18,201 to $45,000 the rate is 15%, then 30% to $135,000, 37% to $190,000, and 45% above $190,000. Each rate applies only to income within its band.
- Do these brackets include the Medicare levy?
- No. The brackets cover income tax only. The Medicare levy of 2% of taxable income is worked out separately and added on top. HECS/HELP repayments are separate again.
- When do the 2026-27 rates apply?
- To income earned from 1 July 2026 to 30 June 2027. The second bracket fell from 16% to 15% on 1 July 2026.
- What changes on 1 July 2027?
- The second bracket is legislated to drop again, from 15% to 14%. That reduces the tax on income between $18,201 and $45,000.