Resident tax rates 2026–27
| Taxable income | Tax rate (2026–27) |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c per $1 over $18,200 |
| $45,001 – $135,000 | 30c per $1 over $45,000 |
| $135,001 – $190,000 | 37c per $1 over $135,000 |
| $190,001 and over | 45c per $1 over $190,000 |
Plus the Medicare levy of 2%, minus the low income tax offset (LITO) of up to $700 if you qualify. Your employer also pays 12% super guarantee on top of your salary (up to the maximum base).
Worked example: $150,000 income
Tax builds up as $4,020 (to $45,000) + $27,000 (30% band) + $5,550 (the $15,000 slice in the 37% band) = $36,570. No LITO at this income. Add Medicare of $3,000 and take-home is $110,430. Your marginal rate is 37%, but your effective income-tax rate is 24.4%.
Frequently asked questions
What are the tax rates for 2026–27?
Residents: 0% to $18,200; 15% from $18,201–$45,000; 30% to $135,000; 37% to $190,000; 45% above. The 15% rate (down from 16%) applies for the whole 2026–27 year.
What is the LITO and who gets it?
The low income tax offset cuts your tax by up to $700 if you earn $37,500 or less, phasing out to zero at $66,667. It's applied automatically in this calculator and in your tax return — you don't claim it separately.
What is the Medicare levy surcharge?
An extra 1%, 1.25% or 1.5% if you earn over $105,000 (singles) / $210,000 (families) without eligible private hospital cover. The base Medicare levy of 2% applies to almost everyone regardless.
What's my effective tax rate on $150,000?
Income tax is $36,570 — an effective rate of 24.4%, well below your 37% marginal rate, because most of your income was taxed in the lower bands first. Add Medicare and it's about 26.4% all-in.
Rates checked against official sources on 1 November 2026: ATO tax rates — Australian residents and ATO low income tax offset. See how we calculate (AU) for the full method.