Australian Income Tax Rates 2025-2026
The Australian financial year runs from 1 July to 30 June. Below are the current resident individual income tax rates effective from 1 July 2025.
| Taxable Income | Tax Rate | Tax Payable |
|---|
| $0 - $18,200 | 0% | Nil |
| $18,201 - $45,000 | 16% | 16c for each $1 over $18,200 |
| $45,001 - $135,000 | 30% | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 - $190,000 | 37% | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $51,638 plus 45c for each $1 over $190,000 |
Tip: The tax-free threshold of $18,200 means you do not pay tax on the first $18,200 of your income. If you earn less than this amount, you are generally not required to lodge a tax return unless you had tax withheld.
Medicare Levy
Most Australian taxpayers are required to pay the Medicare levy, which funds the public healthcare system. The current rate is 2% of taxable income.
Medicare Levy Surcharge (MLS)
If you earn above certain thresholds and do not hold an appropriate level of private hospital cover, you may also need to pay the Medicare Levy Surcharge:
| Taxable Income (Singles) | MLS Rate |
|---|
| $93,000 or less | 0% |
| $93,001 - $108,000 | 1.0% |
| $108,001 - $144,000 | 1.25% |
| $144,001 or more | 1.5% |
Key Tax Dates
| Date | Event |
|---|
| 1 July | Start of Australian financial year |
| 31 October | Deadline for lodging your own tax return |
| 30 June | End of financial year; last day for deductions |
| 21 of each quarter month | BAS (Business Activity Statement) due dates |
Superannuation (Super)
Employers must pay a minimum of 12% of ordinary time earnings into a complying super fund. The super guarantee rate is legislated to increase to 12.5% from 1 July 2026.
Tip: You may be able to claim a tax deduction for personal super contributions. This strategy, known as a concessional contribution, can reduce your taxable income. The concessional contributions cap is $30,000 per financial year.