Income Tax Rates FY 2026

The tables below will help you calculate your estimated tax and marginal rate.

Tax Rates (FY2026)

These rates apply to individuals who are Australian residents for tax purposes. They do not include the standard 2% Medicare Levy or any potential HELP/HECS debt repayments.

Taxable IncomeTax on this Income
$0 – $18,200Nil
$18,201 – $45,00016c for each $1 over $18,200
$45,001 – $135,000$4,288 + 30c for each $1 over $45,000
$135,001 – $190,000$31,288 + 37c for each $1 over $135,000
$190,001 and above$51,638 + 45c for each $1 over $190,000

Key Nuances to Keep in Mind

  • The 2% Medicare Levy: This is an extra 2% tax added on top of your income tax to help fund Australia’s public health system. Low-income earners may qualify for a reduction or exemption.
  • Medicare Levy Surcharge (MLS): If your income is above $97,000 (for singles) or $194,000 (for families) and you don’t have an eligible level of private hospital health insurance, you could face an additional 1% to 1.5% surcharge penalty.
  • Study and Training Loans (HELP/HECS): If you have an outstanding student loan, compulsory repayments kick in automatically once your repayment income hits the minimum threshold (which shifts slightly each year with indexation). Your employer usually handles this via pay packet withholding if you’ve ticked the box on your TFN declaration.

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