What are the tax brackets in Australia?
Tax brackets in Australia are set by the Federal Government and the Australian Tax Office (ATO). They determine the rate of tax that each Australian taxpayer pays based on their annual income.
Each taxpayer falls into a tax bracket in Australia. The specific bracket depends on their taxable income for the financial year. Employers use these brackets to ensure they deduct the correct amount of tax during each pay period.
There are different income tax brackets for Australian residents, foreign residents and working holiday makers.
2025 Budget Update for 2026/27 Financial Years
Lowest tax bracket percentage cuts
Starting on 1 July 2026, the rate for the lowest tax bracket will decrease from 16% to 15%, (This means you’ll pay one cent less on every dollar you earn between $18,201 and $45,000.)
Another cut for that same tax bracket starts on 1 July 2027. The new 15% tax rate will drop a further percentage to 14%.
These changes mean a tax saving of $268 for individuals earning $45,000 or more in the 2026-27 financial year, rising to $536 in the 2027-28 financial year.
Tax brackets and rates for 2024-25 and 2025-26 (Australian resident)
If you know your annual income, have a look at the tax table below which shows you which tax bracket you’re likely to fall into.
Note: The 2024-25 and 2025-26 tax brackets include the revisions to the Stage 3 tax Cuts to provide a larger portion of relief to low and middle income earners.
For Australian residents, the first $18,200 you earn comes under the tax-free threshold. Then, for every dollar you earn above $18,200 the relevant tax rates apply.
Note: The below tax tables do not include the Medicare levy which is an additional 2% of your taxable income. For more information on the Medicare levy please click here.
| Taxable Income | Tax rate |
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16 cents for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Below are the Australian resident tax brackets and rates for the 2026-27 financial year.
| Taxable Income | Tax rate |
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15 cents for each $1 over $18,200 |
| $45,001 – $120,000 | $4,288 plus 30c for each $1 over $45,000 |
| $120,001 – $180,000 | $31,288 plus 37c for each $1 over $135,000 |
| $180,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Income tax rates for foreign residents
There are different tax brackets for people who are non-residents for tax purposes. They still declare any income earned while in Australia including employment income, rental income or any capital gains on Australian assets. However, their tax rates are different to residents.
The main difference for foreign residents is they don’t receive the tax-free threshold and often no Medicare levy tax needs to be paid (subject to holding a Medicare entitlement statement).
2024-25 Foreign residents tax table
| Taxable Income | Tax rate |
| $0 – $135,000 | 30c for each $1 |
| $135,001 – $190,000 | $39,000 plus 37c for each $1 over $135,000 |
| $190,001 and over | $60,850 plus 45c for each $1 over $200,000 |
2023-24 Foreign residents tax table
| Taxable Income | Tax rate |
| $0 – $120,000 | 32.5c for each $1 |
| $120,001 – $180,000 | $39,000 plus 37c for each $1 over $120,000 |
| $180,001 and over | $61,200 plus 45c for each $1 over $180,000 |
Income tax rates for working holiday makers
You are considered a working holiday maker if you have a visa subclass of:
- 417 (working holiday)
- 462 (work and holiday)
People classified as working holiday makers have an additional tax bracket to non-residents.
Working holiday makers do not receive the tax-free threshold, however, the first $45,000 they earn is taxed at only 15c per dollar rather than the non-resident rate of 19c per dollar.
You can read more about working holiday maker tax here.
2024-25 Working holiday maker tax table
| Taxable Income | Tax rate |
| $0 – $45,000 | 15c for each $1 |
| $45,001 – $200,000 | $6,750 plus 30c for each $1 over $45,000 |
| $200,001 and over | $53,250 plus 45c for each $1 over $200,000 |
2023-24 Working holiday maker tax table
| Taxable Income | Tax rate |
| $0 – $45,000 | 15c for each $1 |
| $45,001 – $120,000 | $6,750 plus 32.5c for each $1 over $45,000 |
| $120,001 – $180,000 | $31,125 plus 37c for each $1 over $120,000 |
| $180,001 and over | $53,325 plus 45c for each $1 over $180,000 |
Etax calculates your tax bracket automatically
The Etax online tax return includes an in-built tax calculator that uses all of the information you enter on the return to automatically calculate your tax refund.
Just add your income and deductions, and the calculator works out which tax bracket you fall into and gives you an accurate refund estimate. Etax even helps you by adding pre-existing ATO data to save you time, and it helps you find deductions based on your job and your previous tax return.
Give it a try today. It’s available online 24/7, 365 days a year!
