Guide · 2026-27
Australian income tax brackets 2026-27
The resident income tax rates and thresholds for the 2026-27 financial year (1 July 2026 to 30 June 2027), on current ATO figures. Includes the new 15% second bracket, the Medicare levy, and marginal HELP repayment bands.
Resident tax rates 2026-27
| Taxable income | Marginal rate | Tax on this income |
|---|---|---|
| $0 - $18,200 | 0% | Nil |
| $18,201 - $45,000 | 15% | 15c for each $1 over $18,200 |
| $45,001 - $135,000 | 30% | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 - $190,000 | 37% | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $51,370 plus 45c for each $1 over $190,000 |
The above rates do not include the Medicare levy of 2%.
HELP / HECS repayment bands 2026-27
From 1 July 2025 HELP repayments use a marginal system: you repay a percentage only of the income above each threshold.
| Repayment income | Compulsory repayment |
|---|---|
| $0 - $69,528 | No compulsory repayment |
| $69,529 - $129,717 | 15% of income over $69,528 |
| $129,718 - $186,050 | 17% of income over $129,717 |
| $186,051 and over | 10% of your total repayment income |
Work out your own figure with the HECS/HELP repayment calculator.
Frequently asked questions
What changed for the 2026-27 financial year?
From 1 July 2026 the second marginal tax rate dropped from 16% to 15% (the income from $18,201 to $45,000 band). A further cut to 14% is legislated from 1 July 2027. HELP repayment thresholds were also indexed upward.
What is the tax-free threshold in Australia?
The tax-free threshold is $18,200. If you are an Australian resident for tax purposes, you pay no income tax on the first $18,200 you earn, provided you claim the threshold with one employer.
Do these rates include the Medicare levy?
No. The marginal rates in the table are income tax only. Most taxpayers also pay the Medicare levy of 2% of taxable income on top, with a reduction or exemption for low incomes (below about $27,222).
Are these the resident or non-resident rates?
These are the rates for Australian residents for tax purposes. Foreign residents pay a different scale with no tax-free threshold and are not liable for the Medicare levy.
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Estimate only - based on the figures you enter and the assumptions shown. General information, not financial, tax, or legal advice.