Australian Tax Rates 2025–26
The income tax brackets, Medicare levy, HECS/HELP repayment rates and super caps that applied in 2025-26 — the same figures used by this 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. At tax time, the tax return calculator estimates your refund or amount owing — select 2025–26 in its year selector to apply these rates.
Low Income Tax Offset (LITO)
A tax offset of up to $700 for lower incomes, applied automatically when you lodge — no claim needed. It lifts the effective tax-free threshold to about $22,575. (The larger LMITO ended on 30 June 2022 and no longer applies.)
| 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
Most residents pay 2% of taxable income. Below the low-income threshold you pay nothing, and the levy phases in gradually across the shade-in range.
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)
An extra levy if you earn above the base threshold and don't hold private hospital cover — charged on top of 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
What your employer must pay into your super in 2025-26, plus the caps that limit concessional and after-tax contributions.
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
Business and investment rates for quick reference — GST, FBT, company tax and the CGT discount.
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, or the 2026-27 tax rates that apply from 1 July 2026.
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.