Australian tax brackets: marginal and average rates

Each band applies to part of your income

The resident scale starts with a tax-free band and then applies different rates to successive portions of taxable income. The calculator adds the tax from the bands your income reaches.

A marginal income tax rate describes the rate on the next dollar within a band. It is different from dividing the total estimated liabilities by your entire salary.

Read the breakdown alongside the headline

The tax-bracket calculation comes before the included low income tax offset. Medicare levy, Medicare levy surcharge and compulsory HELP repayments are then separate calculations.

Use the result labels carefully: an effective rate including those items answers a broader question than an income-tax-only average rate. Neither rate tells you the payroll withholding on a particular payment.

Match both year and residency

This calculator provides the supported Australian resident years shown in its selector. A later rate change has its own start date; announcing a change does not make it apply to every year.

Foreign residents, working holiday makers and part-year residents require a different calculation. An Australian address or citizenship alone is not the profile confirmation this tool needs.

2026–27 resident tax brackets

These marginal rates apply to taxable income. Medicare, LITO, study loans and deductions are calculated separately.

Source: Income Tax Rates Act 1986, Schedule 7

2025–26 resident tax brackets

These marginal rates apply to taxable income. Medicare, LITO, study loans and deductions are calculated separately.

Source: Income Tax Rates Act 1986, Schedule 7

Common questions