Do international students pay tax in Australia?

Yes, on income you earn in Australia. But most international students are Australian residents for tax purposes, so the first $18,200 is tax-free rather than taxed from the first dollar. On a $25,000 wage in 2026–27 that is $170 of tax as a resident, against $7,500 on the foreign-resident scale.

What is my tax residency as a student?

If you are enrolled in a course that lasts 6 months or more, the ATO says you may be an Australian resident for tax purposes — and for most students on a degree, diploma or masters that is the answer. It is not automatic: residency depends on your circumstances, and a short course or keeping your home and main ties overseas can point the other way. Use the Tax Residency Quick Check to work through it.

Do I get the tax-free threshold as an international student?

If you are a resident for tax purposes, yes — $18,200, or a pro-rated part of it in the year you arrive. That is what makes the difference between $170 and $7,500 of tax on a $25,000 wage: $7,330 a year.

Do international students pay the Medicare levy?

Only if you are a resident for tax and your income is above $28,011, and even then most student-visa holders can claim a full exemption because they are not entitled to Medicare benefits. You need a Medicare Entitlement Statement from Services Australia to claim the exemption, and all of your dependants must also be in an exemption category.

I ticked foreign resident on my TFN declaration. What now?

Give your employer a new tax file number declaration with the correct answer so the rest of the year is withheld on the right scale, then lodge your tax return — the ATO assesses you on your actual residency, so the over-withheld amount comes back as a refund. Left alone for a full year on a $25,000 wage this costs $7,330.

Should I lodge a tax return as an international student?

Yes, if you earned income during the financial year. Students on resident rates who have had tax withheld from every pay are usually owed a refund, and you cannot get it without lodging.

International Student Tax Calculator Australia

See your take-home pay as an international student on a visa

International student tax Australia: if your course runs 6 months or more, the ATO usually treats you as an Australian resident for tax purposes — which means resident tax rates and the $18,200 tax-free threshold, not the foreign-resident rates most calculators assume. On a $25,000 student wage in 2026–27 that is the difference between $170 and $7,500 of tax.

Open the Salary Tax Calculator

Most students are Australian residents for tax purposes, so the resident button is the usual starting point. Use the foreign-resident one if your course runs less than 6 months, or if you are keeping your home and main ties overseas.

My course is 6 months or longer My course is shorter than 6 months

Not sure? Residency depends on your circumstances rather than your visa — run the Tax Residency Quick Check first.

What residency is worth on a $25,000 student wage

2026–27 rates, an illustrative wage for the 48 hours a fortnight a student visa usually allows during semester.

If you are	Income tax	Medicare levy	Take-home
An Australian resident for tax (course of 6 months or more)	$170	$0	$24,830
A foreign resident for tax	$7,500	$0	$17,500

A student who declares the wrong residency on their TFN declaration pays $7,330 a year too much at this wage, and has to lodge a return to get it back. The resident row does not assume a Medicare levy exemption, so it is the worst case for the resident answer rather than the best.

How to Use This Calculator

1Check how long your course runs — 6 months or more usually makes you an Australian resident for tax purposes
2If you are unsure, run the Tax Residency Quick Check before you go further
3Open the Salary Tax Calculator on the scale that matches your residency
4Enter your annual or hourly salary to see your take-home pay

How Are International Students Taxed in Australia?

Most international students are Australian residents for tax purposes, not foreign residents. The ATO's rule of thumb is course length: if you are enrolled in a course that lasts 6 months or more — which covers almost every degree, diploma or masters — you are usually a resident for tax purposes from when you arrive.

Being a resident for tax has nothing to do with your visa or your citizenship. It means you are taxed at the same rates as anyone else living here: the first $18,200 of income is tax-free (or a pro-rated part of it if you arrive partway through the year) and you can claim tax offsets.

The difference is large. On a $25,000 wage in 2026–27, a resident pays $170 of tax and a foreign resident pays $7,500 — $7,330 more. Declaring the wrong residency on your tax file number declaration is the costlier mistake, because your employer then withholds on the wrong scale all year.

Residency does turn on your own circumstances, so treat the 6-month course rule as the starting point rather than the answer. A short course, keeping your home and main ties overseas or leaving Australia partway through the year can all put you on the other side of the line. Run the residency checker before you fill in a TFN declaration.

Key Tax Rules for International Students

A course of 6 months or more usually means resident for tax: The ATO's Studying in Australia guidance: an overseas student enrolled in a course lasting 6 months or more may be an Australian resident for tax purposes, taxed at resident rates with access to the tax-free threshold and tax offsets.
Tax-free threshold, in full or pro-rated: As a resident you get the $18,200 tax-free threshold. If you arrived partway through the financial year it is pro-rated — a part-year resident gets at least $13,464 plus a share of the remaining $4,736, apportioned by the number of months you were a resident.
Medicare levy: usually exempt, but you must claim it: Residents pay the 2% Medicare levy, and the levy is nil anyway while your income is under $28,011. Above that, most student-visa holders can claim a full exemption because they hold overseas student health cover and are not entitled to Medicare — but you need a Medicare Entitlement Statement from Services Australia to claim it, and every dependant must also be in an exemption category.
Foreign income you earn while a temporary resident: As a temporary resident who is also an Australian resident for tax, most of your foreign income is not taxed here and you do not declare it. You declare income you earn in Australia, plus some employment income for services you perform overseas while a temporary resident.
Work hour limits: Student visa holders can usually work up to 48 hours per fortnight during semester, and unlimited hours during course breaks.
TFN required: Apply for a tax file number. Without one your employer must withhold at the top rate of tax plus Medicare — 47% if you are a resident, 45% if you are a foreign resident.

Tax Tips for International Students

•Check your residency before you sign your TFN declaration, not after — a 6-month-plus course usually means you answer "yes" to being an Australian resident for tax purposes
•Get your TFN as soon as you arrive — apply online through the ATO
•If you have already ticked foreign resident by mistake, tell your employer and lodge a new TFN declaration, then claim the difference back in your tax return
•Lodge a tax return each year, even on a small wage — most students on resident rates get a refund
•Keep records of work expenses, and apply for a Medicare Entitlement Statement if your income is high enough for the levy to bite

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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International Student Tax Calculator Australia

See your take-home pay as an international student on a visa

If you are

Income tax

Medicare levy

Take-home

An Australian resident for tax (course of 6 months or more)

$170

$24,830

A foreign resident for tax

$7,500

$17,500

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.