What are the 2024-25 tax brackets?

$0–$18,200: 0%, $18,201–$45,000: 16%, $45,001–$135,000: 30%, $135,001–$190,000: 37%, $190,001+: 45%. These rates apply to Australian residents.

What is the difference between marginal and effective tax rate?

Your marginal rate is the tax on your last dollar of income. Your effective rate is total tax divided by total income — always lower because of progressive brackets.

Do I pay 45% on my whole income if I earn over $190,000?

No. Only the amount above $190,000 is taxed at 45%. The income below that is taxed at the lower bracket rates.

Tax Bracket Explorer

Explore Australian income tax brackets and calculate your tax

View current tax brackets for Australian residents and calculate how much tax you'll pay based on your income. All rates are based on official ATO data updated as of January 2026.

Verify rates: ATO – Tax rates and codes · 2024-25 tax tables · 2025-26 tax tables

Tax Calculator

Enter your income to see which brackets apply

Annual Income ($)

Tax Year

Income Tax

$13,288

Effective Tax Rate

17.7%

Marginal Tax Rate

30.0%

Tax rate on your next dollar earned

Tax Brackets for 2026-27

Australian resident tax brackets and rates

Income Range	Tax Rate	Base Tax
Up to $18,200	0.0%	-
$18,201 - $45,000	15.0%	-
$45,001 - $135,000	30.0%	$4,288
$135,001 - $190,000	37.0%	$31,288
$190,001 and over	45.0%	$51,638

How to Use This Calculator

1Select the tax year you want to view (2024-25, 2025-26 or 2026-27)
2Enter an income amount to see which bracket it falls into
3View the full bracket table showing thresholds and rates
4Compare how different incomes are taxed across brackets

How Do Australian Tax Brackets Work?

Australia uses a progressive tax system where your income is split across multiple brackets, each taxed at a different rate. Only the income within each bracket is taxed at that bracket's rate — not your entire income.

For example, if you earn $75,000 in 2024-25, the first $18,200 is tax-free, the next $26,800 ($18,201–$45,000) is taxed at 16%, and the remaining $30,000 ($45,001–$75,000) is taxed at 30%. This is why your effective tax rate is lower than your marginal rate.

Key Tax Bracket Concepts

Marginal tax rate: The rate applied to your next dollar of income. This is the highest bracket you're currently in.
Effective tax rate: Your total tax divided by total income — the average rate you pay across all brackets.
Tax-free threshold: The first $18,200 is not taxed for Australian residents who claim the threshold.
Stage 3 tax cuts: From 1 July 2024, the 32.5% and 37% brackets were restructured to 30% up to $135,000.

Understanding Your Tax Position