One rate changed on 1 July 2026. The first tax rate for Australian residents dropped from 16c to 15c for each dollar over the tax-free threshold. Every threshold stayed where it was.
The 2026-27 resident rates
| Taxable income | Tax on this income |
|---|---|
| 0 to $18,200 | Nil |
| $18,201 to $45,000 | 15c for each $1 over $18,200 |
| $45,001 to $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 to $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
Source: ATO, Tax rates: Australian residents. Checked 17 October 2026.
General information only. It does not take your circumstances into account. Speak to us before acting on it.
What changed from 2025-26
- The first rate, on income between $18,201 and $45,000, fell from 16c to 15c for each dollar.
- The tax-free threshold stayed at $18,200.
- The other thresholds and rates (30c, 37c and 45c) did not change.
- The rates still do not include the 2% Medicare levy.
What it means for you
If your taxable income is above $18,200, you pay a little less tax on the first band of your income. Your 2026-27 tax return is worked out on these rates.
If you run a business through a company or a trust, the change affects the individuals who receive wages, salaries or distributions from it. It is worth checking how income is split across the family group before the end of the financial year.
Source: ATO, Tax rates: Australian residents. Checked 17 October 2026.
General information only. It does not take your circumstances into account. Speak to us before acting on it.
Sources
Sources read on 17 October 2026. General information only. It does not take your circumstances into account. Speak to us before acting on it.
