In Australia, the amount of tax you pay depends on your taxable income and is calculated using progressive tax rates. For the 2025-26 financial year, the tax rates for Australian residents are:
- $0 to $18,200: No tax (tax-free threshold)
- $18,201 to $45,000: 16 cents for each $1 over $18,200
- $45,001 to $135,000: $4,288 plus 30 cents for each $1 over $45,000
- $135,001 to $190,000: $31,288 plus 37 cents for each $1 over $135,000
- Over $190,000: $51,638 plus 45 cents for each $1 over $190,000
Additionally, there is a Medicare levy of 2% on your taxable income that is generally applicable. This means the actual tax you pay will vary based on where your income falls in these brackets, plus the 2% Medicare levy on top of that.
