Australian tax guide

Australian income-tax brackets explained

Australian resident income tax uses marginal rates: each band of income is taxed at its own rate, rather than your whole salary jumping to one rate.

The 2026/27 resident rates used here

The calculator uses 0% up to $18,200, then 15% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000 and 45% above $190,000. A standard 2% Medicare levy is estimated separately.

What a marginal rate means

If a pay rise pushes part of your income above a threshold, only that extra portion is taxed at the higher rate. Your previous income keeps the lower rates that already applied to it.

Important exclusions

Tax offsets, HELP repayments, Medicare levy reductions or surcharge, deductions and non-resident rules can all change a final result. See the ATO's resident tax-rate information for official current details.