Australian resident income tax rates 2026–27
See how the resident tax bands, low income tax offset and the new instant work-related deduction fit together before Medicare and study-loan amounts are added.
Resident tax rates for 2026–27
Australian resident individual tax is progressive. A rate applies only to the taxable-income slice inside its band. The schedule below excludes the Medicare levy.
| Taxable income | Tax on this income | Marginal rate |
|---|---|---|
| $0–$18,200 | Nil | 0% |
| $18,201–$45,000 | 15 cents for each $1 over $18,200 | 15% |
| $45,001–$135,000 | $4,020 plus 30 cents for each $1 over $45,000 | 30% |
| $135,001–$190,000 | $31,020 plus 37 cents for each $1 over $135,000 | 37% |
| Over $190,000 | $51,370 plus 45 cents for each $1 over $190,000 | 45% |
Taxable income is not always salary
Salary is one part of assessable income. Taxable income is generally assessable income less allowable deductions. A complete return may also include investment income, capital gains, allowances, benefits and other deductions. The salary calculator deliberately narrows the model to employment cash, an entered salary sacrifice and the optional instant work deduction.
The $1,000 instant work-related deduction
From 2026–27, an eligible Australian resident with assessable labour income can choose a standard work-related deduction of up to $1,000 instead of substantiating individual work expenses. If eligible work income is below $1,000, the standard amount is limited to that income. A person with deductible work expenses above $1,000 can instead claim the substantiated amount under the ordinary rules.
Low income tax offset
LITO can reduce income tax payable but cannot create a refund by itself. The maximum is $700 at taxable income up to $37,500. It then withdraws at 5 cents per dollar to $45,000, leaving $325, and withdraws at 1.5 cents per dollar until it reaches nil at $66,667.
A $75,000 simplified example
With no salary sacrifice and the eligible $1,000 standard work deduction, taxable income is $74,000. The resident schedule gives $12,720 of income tax before offsets. LITO is nil at this income. The Medicare levy and any HELP repayment are separate calculations, which is why a tax-band table alone is not a take-home result.
Who needs a different calculation
- Foreign residents and working holiday makers use different schedules.
- Part-year residency can change the tax-free threshold.
- Business, investment or capital-gains income needs a full return calculation.
- Offsets, family circumstances and private health cover can change the final assessment.
Official sources
Turn the bands into take-home pay.
Combine resident tax, LITO, Medicare levy, HELP and salary sacrifice in one estimate.