What are the 2026–27 tax brackets?

$0–$18,200: 0%, $18,201–$45,000: 15%, $45,001–$135,000: 30%, $135,001–$190,000: 37%, $190,001+: 45%. These rates apply to Australian residents and come straight from the table above — they are not retyped, so this answer cannot fall behind it.

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 come from official ATO sources and are re-checked by an automated daily run — the badge below this calculator carries the date that check last passed.

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

$12,720

Effective Tax Rate

17.0%

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%	$4,020
$135,001 - $190,000	37.0%	$31,020
$190,001 and over	45.0%	$51,370

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 2026–27, the first $18,200 is tax-free, the next $26,800 ($18,201–$45,000) is taxed at 15%, 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

•Your marginal rate tells you how much extra tax you pay on a pay rise or bonus
•Medicare levy (2%) is calculated separately and added on top of income tax
•Non-residents don't get the tax-free threshold and face different rates
•Tax offsets like LMITO (expired) and LITO can reduce your final tax payable

Frequently Asked Questions

Official Sources

Rates checked against the ATO — verified 18 August 2026

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

Rates and thresholds last updated for the 2026–27 financial year.

About this calculator

This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.

This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.

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Income Range

Tax Rate

Base Tax

Up to $18,200

0.0%

$18,201 - $45,000

15.0%

$45,001 - $135,000

30.0%

$4,020

$135,001 - $190,000

37.0%

$31,020

$190,001 and over

45.0%

$51,370

About this calculator

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.