Australian Income Tax Rates 2026-27 — ATO Tax Brackets & Calculator
Complete guide to Australian income tax brackets, marginal rates, Medicare Levy, Super Guarantee, and HECS-HELP thresholds for FY 2026-27.
Legislated. The 16% rate on $18,201–$45,000 was reduced to 15% from 1 July 2026 by the Treasury Laws Amendment (More Cost of Living Relief) Act 2025.
FY 2026-27 Income Tax Brackets — Australian Residents
| Taxable Income | Marginal Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
Excludes Medicare Levy (2%). Resident rates only. Foreign resident rates differ.
Key 2026-27 Tax Figures at a Glance
Key Changes for FY 2026-27
- →Lowest marginal rate reduced from 16% to 15% ($18,201–$45,000) from 1 July 2026
- →Tax-free threshold unchanged at $18,200
- →Legislated by the Treasury Laws Amendment (More Cost of Living Relief) Act 2025
- →Super Guarantee remains at 12%
- →Medicare Levy Surcharge singles threshold indexed to $105,000 (family $210,000)
- →HECS-HELP repayment thresholds are indexed annually — confirm the current figure with the ATO
Calculate Your 2026-27 Tax Refund or Debt
Enter your income, PAYG withheld, and deductions for an instant ATO-accurate estimate.
Open Tax Refund Calculator →Australian Tax 2026-27 — Frequently Asked Questions
What are the 2026-27 income tax rates?+
For FY 2026-27, resident income tax rates are: 0% up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. The only change from 2025-26 is the first marginal rate dropping from 16% to 15%.
When does the 2026-27 tax cut take effect?+
The 2026-27 tax cut applies from 1 July 2026. It was legislated by the Treasury Laws Amendment (More Cost of Living Relief) Act 2025, which reduced the 16% rate to 15%. The ATO updated PAYG withholding so the change flows through to take-home pay from the first pay period after 1 July 2026.
How much will the 2026-27 tax cut save me?+
The 15% rate applies to income between $18,201 and $45,000, so anyone earning at or above $45,000 saves up to $268 a year compared with 2025-26 (1% of the $26,800 in that band). A further cut to 14% is legislated for 2027-28, worth up to about $536 a year versus 2024-25 settings.
Are the 2026-27 tax rates confirmed?+
Yes. The reduction of the 16% rate to 15% from 1 July 2026 is law under the Treasury Laws Amendment (More Cost of Living Relief) Act 2025. The other brackets and the 45% top rate are unchanged from 2025-26.
What stays the same in 2026-27?+
The Super Guarantee rate (12%), the Medicare Levy (2%), and the 30%, 37% and 45% brackets are unchanged. Only the first marginal rate changes, from 16% to 15%. The Medicare Levy Surcharge singles threshold is $105,000 for 2026-27.
Australian Tax Rates — Other Years
Tax rates are based on ATO published information. This page provides general information only and does not constitute tax advice. Consult a registered tax agent for advice specific to your circumstances.