Australia Income Tax Rates: 2026-27, 2025-26 and Historical 2017-18

Australia uses progressive personal income tax rates. The applicable schedule depends on tax residency, the income year and, for some taxpayers, visa status. The Australian income year runs from 1 July to 30 June. Amounts below are in Australian dollars (AUD).

Resident individual income tax rates

The Income Tax Rates Act 1986, Schedule 7, Part I, sets resident individual rates. The 2025 legislation reduced the 16% marginal rate to 15% from 1 July 2026.

2026-27 Australian residents

2025-26 Australian residents

The Medicare levy is generally 2% of taxable income for liable taxpayers, subject to low-income thresholds and exemptions. A Medicare levy surcharge may also apply. The temporary budget repair levy ended on 30 June 2017.

Foreign resident income tax rates

Schedule 7, Part II, of the Income Tax Rates Act 1986 provides rates for foreign residents. Foreign residents generally do not receive the resident tax-free threshold and generally do not pay the Medicare levy.

Working holiday maker tax rates

Visa subclasses 417 (Working Holiday) and 462 (Work and Holiday) are covered by special working holiday maker rules under Schedule 7, Part III. These rates generally apply to foreign residents and Australian residents who are not eligible for relevant non-discrimination treaty treatment. Residency and treaty exceptions should be checked individually.

Employers generally must register with the ATO as working holiday maker employers to apply the relevant withholding schedule. Withholding and final income tax liability are not always identical. Consult the ATO working holiday maker guidance.

Corporate and company income tax rates

Company income tax is governed principally by the Income Tax Act 1986 and associated income tax legislation. A base rate entity generally has aggregated turnover below $50 million and no more than 80% of assessable income comprising specified passive income. Qualification is tested for each income year.

Special rules apply to life insurance companies, retirement savings account (RSA) providers, pooled development funds, credit unions and non-profit companies. Those entities should consult the applicable ATO company tax guidance rather than assume the general rates apply to every component of their income.

Special company and investment categories

Life insurance companies: Different tax rates may apply to ordinary taxable income and the complying superannuation class of taxable income, including a 15% rate for the latter. RSA providers: RSA components may attract a 15% rate, while other components follow applicable company tax rules. Additional tax can apply to certain contributions without a tax file number.

Pooled development funds: Qualifying SME income and unregulated investment components may be taxed at special rates (historically 15% and 25% respectively). Credit unions: Special rates can apply to the medium credit union taxable-income band. Non-profit companies: Special tax-free thresholds and stepped rates may apply to non-exempt non-profit companies. Check the ATO's relevant income-year schedule before applying these rules.

Historical Australia income tax tables for 2017-18

The following original schedules are preserved as a historical reference for the year 1 July 2017 to 30 June 2018. They include residents, foreign residents, working holiday makers, company classes, life insurers, RSA providers, pooled development funds, credit unions and non-profit companies. They are not current tax rates.

Official legislation and tax resources

• ATO: Tax rates for Australian residents
• ATO: Tax rates for foreign residents
• ATO: Working holiday maker rates
• ATO: Company tax rate changes
• Income Tax Rates Act 1986 (current compilation)
• ATO tax withheld calculator

General information only. Tax residency, deductions, offsets, levies, treaty rules and the type of income can change the final tax payable.