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.
These rates reflect changes announced in the May 2025 Federal Budget and are subject to parliamentary passage. Confirm with the ATO before lodging.
FY 2026-27 Income Tax Brackets — Australian Residents
| Taxable Income | Marginal Rate |
|---|---|
| $0 – $18,900 (proposed) | Nil |
| $18,901 – $45,000 (proposed: 16%) | 16% |
| $45,001 – $135,000 (proposed: 30%) | 30% |
| $135,001 – $190,000 (proposed) | 37% |
| $190,001+ (proposed) | 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
- →Tax-free threshold proposed to increase from $18,200 to $18,900
- →Lowest marginal rate proposed to reduce from 19% to 16% ($18,901–$45,000)
- →32.5% rate proposed to reduce to 30% and upper limit increase to $135,000
- →37% bracket upper limit proposed to increase to $190,000
- →Super Guarantee remains at 12%
- →Subject to parliamentary passage — confirm with ATO before use
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 proposed 2026-27 income tax rates?+
The May 2025 Federal Budget proposed significant rate cuts for FY 2026-27: 0% up to $18,900; 16% from $18,901 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. These changes require parliamentary passage and are not yet confirmed law.
When do the 2026-27 tax cuts take effect?+
If passed by Parliament, the 2026-27 tax cuts would apply from 1 July 2026. The ATO would update withholding tables for employers to reflect the new rates. Workers would see higher take-home pay from their first pay period after 1 July 2026.
How much will the 2026-27 tax cuts save me?+
The saving depends on your income. Someone earning $45,000 would save approximately $1,350 per year (the reduction from 19% to 16% on income between $18,901 and $45,000). Someone earning $100,000 would save approximately $1,350 plus 2.5% on income between $45,001 and $100,000 — approximately $3,225 total.
Are the 2026-27 tax rates confirmed?+
No — the 2026-27 rates announced in the May 2025 Budget are proposed changes that require legislation to pass Parliament. They have not yet been enacted into law. Use current 2025-26 rates for tax planning and PAYG purposes until confirmed.
What stays the same in 2026-27?+
The Super Guarantee rate (12%), Medicare Levy (2%), and the 45% top marginal rate are not proposed to change for 2026-27. The Medicare Levy Surcharge thresholds will be indexed as usual. HECS-HELP repayment thresholds will also be indexed.
Australian Tax Rates — Other Years
Tax rates are based on ATO published information and proposed budget measures that have not yet become law. This page provides general information only and does not constitute tax advice. Consult a registered tax agent for advice specific to your circumstances.