Income tax rates for Australian residents
The Australian tax year is 1 July to 30 June. Resident marginal rates, the tax-free threshold, the Medicare Levy and the Levy Surcharge — and how PAYG quietly handles most of it.
Published 17 May 2026 · Last reviewed 17 May 2026
The tax year
Australian tax year runs 1 July to 30 June.
You lodge a tax return by 31 October each year (or later if you use a registered tax agent).
If you arrive mid-year, you only pay tax on the income you earned in Australia from your arrival date, and the tax-free threshold is pro-rated. See https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/coming-to-australia/tax-free-threshold-for-newcomers-to-australia
Income tax — residents (as of May 2026, for the 2025–26 year)
The standard resident rates for 2025–26:
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil (the "tax-free threshold") |
| $18,201 – $45,000 | 16c 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 |
These are marginal rates — only income above each threshold is taxed at the higher rate, not your whole income.
Plus
- Medicare Levy — 2% of taxable income for most residents (reduced or waived if you earn under a low-income threshold).
- Medicare Levy Surcharge (MLS) — extra 1–1.5% if your income is above set thresholds AND you don't hold private hospital insurance. The surcharge is designed to push higher earners onto private health. See private health insurance for thresholds.
Verify the current year's exact figures at: https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents