Australia uses a progressive marginal tax system for residents, with a tax-free threshold and rates rising with income. Here's the full breakdown, including who pays differently.
| Taxable Income | Tax on This Income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c for each $1 over $135,000 |
| $190,001+ | $51,638 + 45c for each $1 over $190,000 |
These rates apply to Australian tax residents only — foreign residents and working holiday makers follow different schedules, covered below.
See your exact tax based on these brackets.
Use the Income Tax Calculator →Beyond the tax-free threshold, most low-to-middle income residents also get LITO — a non-refundable offset applied automatically, worth up to $700:
| Taxable Income | LITO Amount |
|---|---|
| Up to $37,500 | $700 (full offset) |
| $37,501 – $45,000 | $700 minus 5c per $1 over $37,500 |
| $45,001 – $66,667 | $325 minus 1.5c per $1 over $45,000 |
| Above $66,667 | $0 |
Combined with the tax-free threshold, LITO means eligible residents pay no income tax on earnings up to roughly $22,575.
| Taxable Income | Income Tax | Less LITO | Net Tax |
|---|---|---|---|
| $30,000 | $1,888 | − $700 | $1,188 |
| $60,000 | $8,788 | − $100 | $8,688 |
| $100,000 | $20,788 | − $0 | $20,788 |
| $200,000 | $56,138 | − $0 | $56,138 |
These figures exclude the Medicare Levy (an additional 2% for most residents) — see our Medicare Levy Guide for the full picture.
Foreign residents for tax purposes don't get the tax-free threshold — they're taxed from the very first dollar:
| Taxable Income | Tax on This Income |
|---|---|
| $0 – $135,000 | 30c for each $1 |
| $135,001 – $190,000 | $40,500 + 37c for each $1 over $135,000 |
| $190,001+ | $60,850 + 45c for each $1 over $190,000 |
Non-residents also generally can't claim LITO or most other resident tax offsets, and aren't liable for the Medicare Levy — but the absence of the tax-free threshold usually makes their overall tax bill higher for the same income.
Working holiday makers follow their own schedule, regardless of how long they've been in Australia or their residency status for other purposes:
| Taxable Income | Tax on This Income |
|---|---|
| $0 – $45,000 | 15c for each $1 |
| $45,001 – $135,000 | $6,750 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $33,750 + 37c for each $1 over $135,000 |
| $190,001+ | $54,100 + 45c for each $1 over $190,000 |
The "Stage 3" tax cuts, effective from 1 July 2024, restructured the system significantly — reducing the 32.5% rate to 30% and widening the bracket it applies to, among other changes. If you're comparing to figures from 2023-24 or earlier, expect meaningful differences, not just small annual indexation.
Tax brackets are set in the federal Budget and can change. Verify current figures with the ATO before filing.