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How the income tax brackets have changed year by year, and what the cuts mean for your take-home pay. All rates are ATO figures — the calculators on this site use the 2026–27 rates by default.
| Taxable income | 2024–25 | 2025–26 | 2026–27 (current) | 2027–28 |
|---|---|---|---|---|
| $0 – $18,200 | 0% | 0% | 0% | 0% |
| $18,201 – $45,000 | 16% | 16% | 15% | 14.0% |
| $45,001 – $135,000 | 30% | 30% | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% | 37% | 37% |
| $190,001+ | 45% | 45% | 45% | 45% |
Rates exclude the 2% Medicare levy. Source: ATO – Tax rates and codes.
| Year | 19% | 32.5% | 37% | 45% |
|---|---|---|---|---|
| 2023–24 | $18,201 – $45,000 | $45,001 – $120,000 | $120,001 – $180,000 | $180,001+ |
| 2022–23 | $18,201 – $45,000 | $45,001 – $120,000 | $120,001 – $180,000 | $180,001+ |
| 2021–22 | $18,201 – $45,000 | $45,001 – $120,000 | $120,001 – $180,000 | $180,001+ |
| 2020–21 | $18,201 – $45,000 | $45,001 – $120,000 | $120,001 – $180,000 | $180,001+ |
| 2019–20 | $18,201 – $37,000 | $37,001 – $90,000 | $90,001 – $180,000 | $180,001+ |
| 2018–19 | $18,201 – $37,000 | $37,001 – $90,000 | $90,001 – $180,000 | $180,001+ |
| 2017–18 | $18,201 – $37,000 | $37,001 – $87,000 | $87,001 – $180,000 | $180,001+ |
| 2016–17 | $18,201 – $37,000 | $37,001 – $87,000 | $87,001 – $180,000 | $180,001+ |
The first $18,200 is tax-free in every year shown. Rates exclude the 2% Medicare levy. A 2% Temporary Budget Repair Levy also applied to income over $180,000 up to 30 June 2017. Figures cross-checked across independent sources; reference only — the calculators use 2026–27 rates.
| Salary | Income tax 2024–25 | Income tax 2027–28 | You save |
|---|---|---|---|
| $40,000 | $2,913 | $2,287 | $626 |
| $60,000 | $8,688 | $7,837 | $851 |
| $80,000 | $14,788 | $13,952 | $836 |
| $100,000 | $20,788 | $19,952 | $836 |
| $150,000 | $36,838 | $35,932 | $906 |
Income tax only, for a resident claiming the tax-free threshold. Figures are calculated with this site's salary tax calculator.
From 1 July 2024 the second tax rate dropped from 19% to 16% and the 32.5% rate fell to 30%, with the 30% bracket widened up to $135,000. This was the revised "Stage 3" package.
Yes. The lowest marginal rate steps down further in later years — you can see each supported year's rates in the comparison table above. The current 2026–27 rates are the ones the calculators use by default.
No. Superannuation is separate from income tax. Your employer pays the super guarantee (12%) on top of your salary regardless of the income tax rates.
Every resident taxpayer benefits, but the dollar value differs by income. Because tax brackets are progressive, a cut to a lower rate saves every taxpayer earning above that bracket the same flat amount, while widening a bracket mainly benefits people earning near the top of it. See the savings table above for how the 2024–25 → 2027–28 change plays out at different salaries.
No. Foreign resident tax rates are a separate schedule with no tax-free threshold, and the cuts described here apply to the resident rates only. Foreign residents are taxed from the first dollar at their own bracket rates.
LITO is a separate offset from the tax brackets shown here — it reduces tax payable for incomes up to about $66,667 and phases out above that. Rate cuts to the brackets and LITO both reduce your final bill, but they're calculated independently.
See the full income tax and take-home breakdown for common Australian salaries.
Current and historical resident tax rates are cross-checked against ATO published rates each financial year.
Rates checked against the ATO — verified 17 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.
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.
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