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.
Income Tax
$13,288
Effective Tax Rate
17.7%
Marginal Tax Rate
30.0%
Tax rate on your next dollar earned
| 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 |
Understanding Tax Brackets
Australian income tax uses a progressive tax system, meaning different portions of your income are taxed at different rates. As your income increases, you move into higher tax brackets, but only the income within each bracket is taxed at that bracket's rate.
For example, if you earn $75,000 per year, the first $18,200 is tax-free, the next $26,800 is taxed at 16%, and the remaining $30,000 is taxed at 30%. This is why your effective tax rate is lower than your marginal tax rate.
Key Terms
- Marginal Tax Rate: The tax 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 your total income. This gives you the average rate you pay across all brackets.
- Tax-Free Threshold: The first $18,200 of income is not subject to income tax for Australian residents.
Important Notes
- These rates apply to Australian residents for the 2026-27 financial year.
- Medicare levy (2% of taxable income) is calculated separately and added to your income tax.
- Additional levies may apply if you don't have private health insurance and earn above certain thresholds.
- Tax offsets and deductions can reduce your final tax payable. Use our Salary Tax Calculator for a complete calculation including all deductions.