Australian Tax Rates 2026–27
The income tax brackets, Medicare levy, HECS/HELP repayment rates and super caps that apply this financial year — 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 second-bracket rate stepped down to 15% on 1 July 2026 under the legislated cost-of-living tax cuts, and is legislated to fall again from 1 July 2027; the other rates and thresholds are unchanged.
| Taxable income | Marginal rate | Tax payable at top of bracket |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 | 15% | $4,020 |
| $45,001 – $135,000 | 30% | $31,020 |
| $135,001 – $190,000 | 37% | $51,370 |
| $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 2026–27 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 $22,867. (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 $105,000 | Below $210,000 | No surcharge |
| Tier 1 | $105,001 – $123,000 | $210,001 – $246,000 | 1% |
| Tier 2 | $123,001 – $164,000 | $246,001 – $328,000 | 1.25% |
| Tier 3 | $164,001+ | $328,001+ | 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 – $69,528 | Nil |
| $69,529 – $129,717 | 15c per dollar above $69,528 |
| $129,718 – $186,050 | $9,028 plus 17c per dollar above $129,717 |
| $186,051+ | 10% of total repayment income |
Project your own repayments and payoff timeline with the HECS repayment calculator.
Superannuation
What your employer must pay into your super in 2026-27, 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 $2,100,000 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 2027
Further legislated cut to the second bracket
The 2026-27 rates on this page already include the second-bracket cut to 15% that applied from 1 July 2026. Under the same legislated path, that rate is set to fall again from 1 July 2027. See the Budget cost-of-living factsheet for the full schedule.
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 2026-27 settings.
More reading
Related guides
Background reading on tax, super, and salary topics.
Frequently Asked Questions
What are the income tax brackets for 2026-27 in Australia?
How much tax do I pay on $80,000 in 2026-27?
What is the tax-free threshold in Australia for 2026-27?
What is the Medicare levy threshold for 2026-27?
What is the HECS repayment threshold for 2026-27?
What is the superannuation guarantee rate for 2026-27?
This reference page is for general information only. Tax rates are sourced from the ATO and are correct as at 1 July 2026. Rates and thresholds are subject to legislative change. Always consult a registered tax agent for advice on your specific circumstances.