2026-27 Australian Resident Tax Rates
These are the ATO resident tax rates for the 2026-27 income year (1 July 2026 to 30 June 2027):
| Taxable Income | Tax on this income |
|---|---|
| $0 to $18,200 | Nil |
| $18,201 to $45,000 | 15c for each $1 over $18,200 |
| $45,001 to $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 to $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 only change from 2025-26 is the first rate, which falls from 16% to 15%. The thresholds and the 30%, 37% and 45% rates are the same as in 2024-25 and 2025-26. The rates do not include the 2% Medicare levy.
Foreign Residents and Working Holiday Makers
The ATO has not yet published 2026-27 tables for foreign residents or working holiday makers, so the calculator uses the latest published 2025-26 rates and labels them. Neither table has the 16% band that changed on 1 July 2026.
- Foreign residents: 30% on income up to $135,000, 37% to $190,000 and 45% above, with no tax-free threshold, no LITO and no Medicare levy.
- Working holiday makers (visa 417 or 462): 15% on income up to $45,000, then 30%, 37% and 45% at the same thresholds. Most are foreign residents for tax purposes, so the calculator charges no Medicare levy and gives no LITO.
Medicare Levy and LITO
The Medicare levy is 2% of taxable income for most residents. A single person pays nothing up to the lower threshold and 10c for each $1 above it until the levy reaches 2%. The latest thresholds the ATO has published are for 2025-26: $28,011 and $35,013. The 2026-27 thresholds are not yet published, so the calculator uses these.
The low income tax offset (LITO) is for Australian residents and can reduce income tax to nil but not below, and it does not reduce the Medicare levy:
- $700 for taxable income up to $37,500
- $700 less 5c for each $1 between $37,501 and $45,000
- $325 less 1.5c for each $1 between $45,001 and $66,667
- Nil above $66,667
Worked example: A$60,000 resident income
Consider an Australian resident with A$60,000 of taxable income in 2026-27. Tax is A$4,020 plus 30c for each dollar over A$45,000, which comes to A$8,520 before offsets.
Because income is between A$45,001 and A$66,667, LITO is A$325 less 1.5c for each dollar over A$45,000, so the offset is A$100 and income tax falls to A$8,420. The Medicare levy adds 2% of A$60,000, or A$1,200.
Total tax is A$9,620, an effective rate of 16.03%. Take-home pay is A$50,380 a year, or about A$4,198 a month. Employer super is paid into your fund on top of this and is not part of the figure.
Superannuation and Other Considerations
Superannuation: the super guarantee is 12% for 2026-27. Your employer pays it into your super fund on top of your salary, so it is not part of the take-home figure.
This calculator works from taxable income. It does not include:
- HELP and other study loan repayments
- Capital gains tax on investments
- Deductions for work-related expenses, rental losses and similar items
- The Medicare levy surcharge, family Medicare thresholds and Medicare levy exemptions
- Resident working holiday makers from non-discrimination article countries, who can be taxed differently
For a full picture use the ATO's Income Tax Estimator.
Frequently asked questions
What is the tax-free threshold in Australia for 2026-27?
Australian residents pay no income tax on the first $18,200. Because LITO of up to $700 also applies, a resident pays no income tax until taxable income passes about $22,866. Foreign residents and working holiday makers have no tax-free threshold.
What changed on 1 July 2026?
The resident tax rate on income between $18,201 and $45,000 fell from 16% to 15%. The other resident rates and thresholds are unchanged, so tax on $45,000 is now $4,020 instead of $4,288, a saving of $268 for anyone earning $45,000 or more.
How much is the Medicare levy?
The Medicare levy is 2% of taxable income for most Australian residents. Single people on low incomes pay a reduced levy or none: for 2025-26, the latest year published, nothing up to $28,011 and a reduced levy up to $35,013. Foreign residents do not pay it. Higher earners without private hospital cover may also owe the Medicare levy surcharge, which this calculator does not include.
Does this calculator work for working holiday makers?
Yes, for the usual case. Working holiday makers on 417 or 462 visas are taxed at 15% on income up to $45,000 and at higher rates above that (2025-26 ATO rates, the latest published). Most are foreign residents for tax purposes, so the calculator applies no Medicare levy and no LITO. Australian-resident working holiday makers from non-discrimination article countries can be taxed differently.
When is the Australian tax year?
The Australian income year runs from 1 July to 30 June. The 2026-27 income year covers 1 July 2026 to 30 June 2027.