Australian Tax Rates 2025–26
Quick-reference for all key Australian tax rates, thresholds, and caps for the 2025-26 financial year — every figure sourced from the same constants that power the site's calculators.
Income Tax Brackets
Resident individuals pay tax at marginal rates — each rate applies only to the slice of income inside its bracket. The Stage 3 rates that started on 1 July 2024 continue unchanged for 2025-26.
| Taxable income | Marginal rate | Tax payable at top of bracket |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 | 16% | $4,288 |
| $45,001 – $135,000 | 30% | $31,288 |
| $135,001 – $190,000 | 37% | $51,638 |
| $190,001 – and over | 45% | — |
See how these brackets land on your own pay with the tax calculator or the take-home pay calculator.
Low Income Tax Offset (LITO)
Maximum $700 — automatically applied by the ATO. Reduces tax payable (not taxable income), lifting the effective tax-free threshold to about $22,575. LMITO ended 30 June 2022 and does not apply for 2025-26.
| Taxable income | LITO amount |
|---|---|
| $0 – $37,500 | $700 (maximum) |
| $37,501 – $45,000 | $700 less 5c per $1 above $37,500 |
| $45,001 – $66,667 | $325 less 1.5c per $1 above $45,000 |
| $66,668+ | Nil |
Medicare Levy
2% of taxable income for most Australian residents, with a shade-in range that phases the levy in above the low-income threshold.
Holders of a Medicare Entitlement Statement, certain visa categories, and low-income earners below the threshold may be exempt or reduced.
Medicare Levy Surcharge (MLS)
Applies to individuals and families without private hospital cover whose income exceeds the base threshold. Paid in addition to the standard 2% Medicare levy.
| Tier | Single income | Family income | Surcharge |
|---|---|---|---|
| Below threshold | Below $101,000 | Below $202,000 | No surcharge |
| Tier 1 | $101,001 – $118,000 | $202,001 – $236,000 | 1% |
| Tier 2 | $118,001 – $158,000 | $236,001 – $316,000 | 1.25% |
| Tier 3 | $158,001+ | $316,001+ | 1.5% |
HECS/HELP Repayment Rates
From 2025-26, HECS/HELP uses a marginal repayment system — you repay a percentage of income above each bracket threshold, not a flat percentage of total income.
| Repayment income | Annual repayment |
|---|---|
| $0 – $67,000 | Nil |
| $67,001 – $125,000 | 15c per dollar above $67,000 |
| $125,001 – $179,285 | $8,700 plus 17c per dollar above $125,000 |
| $179,286+ | 10% of total repayment income |
Project your own repayments and payoff timeline with the HECS repayment calculator.
Show 2024-25 HECS rates (percentage-based system)
| Repayment income | Rate (% of total income) |
|---|---|
| Below $54,435 | Nil |
| $54,435 – $62,850 | 1.0% |
| $62,851 – $66,620 | 2.0% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3.0% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4.0% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5.0% |
| $94,504 – $100,174 | 5.5% |
| $100,175 – $106,185 | 6.0% |
| $106,186 – $112,556 | 6.5% |
| $112,557 – $119,309 | 7.0% |
| $119,310 – $126,467 | 7.5% |
| $126,468 – $134,056 | 8.0% |
| $134,057 – $142,100 | 8.5% |
| $142,101 – $150,626 | 9.0% |
| $150,627 – $159,663 | 9.5% |
| $159,664 – + | 10.0% |
Superannuation
Key rates and caps for the 2025-26 financial year.
Concessional contributions include employer SG, salary sacrifice, and personal deductible contributions. The non-concessional cap is nil once total super balance exceeds the $2,000,000 transfer balance cap. Model contribution strategies with the super projection calculator.
Other Key Rates
What changes from 1 July 2026
Legislated cuts to the second bracket
The Australian Government has legislated further cuts to the rate on the second bracket ($18,200–$45,000), stepping down from 16% from 1 July 2026 and again from 1 July 2027. The 2025-26 rates on this page are unaffected. See the Budget cost-of-living factsheet for the legislated path — this reference will be joined by a 2026-27 page when the new year starts.
See how these rates apply to your salary
Enter your income to see your exact take-home pay, HECS repayment, super, and Medicare levy under the 2025-26 settings.
More reading
Related guides
Background reading on tax, super, and salary topics.
Frequently Asked Questions
What are the income tax brackets for 2025-26 in Australia?
How much tax do I pay on $80,000 in 2025-26?
What is the tax-free threshold in Australia for 2025-26?
What is the Medicare levy threshold for 2025-26?
What is the HECS repayment threshold for 2025-26?
What is the superannuation guarantee rate for 2025-26?
This reference page is for general information only. Tax rates are sourced from the ATO and are correct as at 1 July 2025. Rates and thresholds are subject to legislative change. Always consult a registered tax agent for advice on your specific circumstances.