Tax Brackets Australia 2025-26: Income Tax Rates, Thresholds & How Much You Pay
Complete Australian tax brackets for 2025-26 with rates from 0% to 45%. See exactly how much tax you pay on $50K, $80K, $100K, $150K — plus Medicare levy and HECS. Free calculator inside.
Australian tax brackets for 2025-26 — resident individuals
For the 2025-26 financial year (1 July 2025 to 30 June 2026), Australian resident individuals are taxed at the following rates. $0 to $18,200: nil (tax-free threshold). $18,201 to $45,000: 16 cents for each $1 over $18,200. $45,001 to $135,000: $4,288 plus 30 cents for each $1 over $45,000. $135,001 to $190,000: $31,288 plus 37 cents for each $1 over $135,000. $190,001 and over: $51,638 plus 45 cents for each $1 over $190,000. These rates reflect the revised Stage 3 tax cuts that took effect on 1 July 2024, which lowered the 19% bracket to 16%, reduced the 32.5% bracket to 30%, raised the 37% threshold from $120,000 to $135,000, and kept the 45% rate for incomes over $190,000. The rates remain unchanged from 2024-25 to 2025-26.
Tax brackets for foreign residents and working holiday makers
Foreign residents (people who are not Australian residents for tax purposes) do not receive the tax-free threshold and are taxed from the first dollar. For 2025-26, the foreign resident rates are: $0 to $135,000 at 30 cents per dollar, $135,001 to $190,000 at 37 cents per dollar, and $190,001 and over at 45 cents per dollar. Foreign residents also do not pay the Medicare levy. Working holiday makers (visa subclasses 417 and 462) have their own tax table: the first $45,000 is taxed at 15%, and income above $45,000 is taxed at the standard resident marginal rates. This 15% rate applies regardless of residency status. Employers must register with the ATO as working holiday maker employers and withhold at the correct rate. If you are unsure of your residency status, the ATO's residency tests cover domicile, 183-day presence, Commonwealth superannuation, and family ties.
Medicare levy and Medicare levy surcharge
On top of income tax, most Australian residents pay the Medicare levy of 2% of taxable income. This funds Australia's public healthcare system. Low-income earners may qualify for a reduction or exemption — for 2025-26, the Medicare levy reduction threshold for singles is $26,000 (phasing in to the full 2% at $32,500). For families, the threshold is $43,846 plus $4,027 for each dependent child. You may also be exempt if you hold a valid exemption certificate (for example, foreign residents or certain visa holders). Separately, the Medicare levy surcharge (MLS) applies to higher-income earners who do not hold an appropriate level of private hospital cover. The MLS rates for 2025-26 are: 1% for singles earning $97,000-$113,000 (or families $194,000-$226,000), 1.25% for $113,001-$151,000 ($226,001-$302,000 families), and 1.5% above $151,000 ($302,000 families). Taking out private hospital cover eliminates the MLS.
How much tax at $50K, $80K, $100K, and $150K salary
Here is the income tax payable at common salary levels for 2025-26 (excluding Medicare levy and before any offsets). At $50,000: tax on the first $18,200 is nil, then 16% on $18,201-$45,000 ($4,288), then 30% on $45,001-$50,000 ($1,500). Total tax: $5,788. Effective rate: 11.6%. At $80,000: $4,288 plus 30% on $35,000 ($10,500). Total tax: $14,788. Effective rate: 18.5%. At $100,000: $4,288 plus 30% on $55,000 ($16,500). Total tax: $20,788. Effective rate: 20.8%. At $150,000: $4,288 plus 30% on $90,000 ($27,000) plus 37% on $15,000 ($5,550). Total tax: $36,838. Effective rate: 24.6%. Add the 2% Medicare levy to each ($1,000, $1,600, $2,000, $3,000 respectively) for total government deductions. Use our Tax Calculator for your exact figure including offsets and HECS.
Comparison to 2023-24 tax rates (before Stage 3 cuts)
The Stage 3 tax cuts, effective from 1 July 2024, delivered meaningful savings across all income levels. Before the changes, the 2023-24 brackets were: nil on $0-$18,200, 19% on $18,201-$45,000, 32.5% on $45,001-$120,000, 37% on $120,001-$180,000, and 45% on $180,001+. Under the revised Stage 3 cuts, the 19% rate dropped to 16% (saving up to $804 per year for everyone above $45,000), the 32.5% rate dropped to 30% (saving an additional $2,250 for those above $135,000), and the 37% bracket was widened from $120,000-$180,000 to $135,000-$190,000. Someone earning $80,000 saves $1,304 per year compared to the 2023-24 rates. At $120,000, the saving is $2,679. At $200,000, the saving is $4,529. These cuts replaced the original Stage 3 proposal, which would have delivered larger benefits to high-income earners and less to middle-income workers.
LMITO, tax offsets, and HECS-HELP repayments
The Low and Middle Income Tax Offset (LMITO) ended on 30 June 2023 and is not available for 2025-26. However, the Low Income Tax Offset (LITO) still applies — it provides up to $700 for taxable incomes up to $37,500, phasing out between $37,500 and $66,667. The LITO is non-refundable, meaning it can reduce your tax to zero but will not generate a refund on its own. For HECS-HELP and other study loan repayments, the compulsory repayment thresholds for 2025-26 start at $54,435. If your repayment income (taxable income plus net investment losses plus reportable fringe benefits plus reportable super contributions) exceeds this threshold, you will repay between 1% and 10% of your total repayment income. At $80,000 the repayment rate is approximately 4.5% ($3,600 per year). HECS repayments are withheld by your employer through PAYG but the actual liability is calculated on your tax return. Use our HECS Calculator to see your exact repayment amount.
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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