What are the Australian tax brackets for 2026-27?

0% to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above $190,000. The second bracket fell from 16% to 15% on 1 July 2026.

What is the Low Income Tax Offset?

Up to $700 for taxable incomes up to $37,500, phasing out to nil at $66,667. It reduces income tax but never below zero, and it does not reduce the Medicare levy.

What is the superannuation guarantee rate?

12% from 1 July 2025 — the final scheduled increase, unchanged for 2026-27. Your employer pays it on top of your salary.

How much tax do I pay on $80,000 in Australia?

In 2026-27, income tax is $14,520 and the Medicare levy is $1,600 — take-home pay is $63,880 a year. Super of $9,600 is paid on top by your employer.

Australia Tax Brackets 2026-27

Q: What is the Medicare levy?

2% of taxable income for most Australian residents. Low-income earners pay less: no levy at or below $28,011 (singles), then 10% of the excess up to $35,013, then the full 2%.

Q: What is the Medicare Levy Surcharge?

An extra 1% to 1.5% for singles earning over $105,000 (2026-27) without appropriate private hospital cover. It is not included in the basic calculator.

TL;DR: Australian resident tax in 2026-27 runs from 0% on the first $18,200 to 45% above $190,000, plus the 2% Medicare levy. The only change for 2026-27 is the second bracket falling from 16% to 15% — worth up to $268 a year. The Low Income Tax Offset is worth up to $700, and super is 12% on top of your salary. All figures are from the ATO.

Resident tax rates 2026-27

Taxable income	Tax
$0 – $18,200	Nil
$18,201 – $45,000	15c for each $1 over $18,200
$45,001 – $135,000	$4,020 plus 30c for each $1 over $45,000
$135,001 – $190,000	$31,020 plus 37c for each $1 over $135,000
$190,001 and over	$51,370 plus 45c for each $1 over $190,000

The 2025-26 rates are identical except the second bracket is 16% instead of 15% (tax at the top of that bracket $4,288 instead of $4,020). The tax-free threshold of $18,200 has not changed since 2012. These rates do not include the Medicare levy.

Medicare levy: 2%, with a shade-in

Most Australian residents pay the Medicare levy of 2% of taxable income. Low-income earners pay less: no levy at or below $28,011 (singles, 2025-26), then 10% of the excess up to $35,013, then the full 2%. The ATO's own example proves the rule: a single person on $29,000 pays $98.90 — exactly 10% of the $989 over the threshold. The 2026-27 thresholds have not been separately published by the ATO, so the 2025-26 figures are carried forward as provisional. If you earn over $105,000 (singles, 2026-27) without appropriate private hospital cover, the Medicare Levy Surcharge adds 1% to 1.5% on top.

Low Income Tax Offset (LITO)

Taxable income	LITO
$37,500 or less	$700 (maximum)
$37,501 – $45,000	$700 less 5c per $1 over $37,500
$45,001 – $66,667	$325 less 1.5c per $1 over $45,000
$66,668 or more	Nil

LITO is non-refundable: it can cut your tax to zero but never below, and it does not reduce the Medicare levy. It is applied automatically by the ATO — there is nothing to claim. Combined with the tax-free threshold, the effective tax-free income in 2026-27 is $22,867 ($18,200 + $700 ÷ 15%). Do not confuse LITO with the Low and Middle Income Tax Offset (LMITO), which ended after 2021-22.

Superannuation guarantee: 12%

From 1 July 2025 the superannuation guarantee is 12% of ordinary time earnings — the final scheduled increase, and it stays 12% from 1 July 2026. Your employer pays it on top of your salary; it is not deducted from your take-home pay. From 1 July 2026, Payday Super requires payment within 7 business days of payday (instead of quarterly) and changes the contribution base to “qualifying earnings” with an annual cap of $270,830.

Worked example: $80,000 salary, 2026-27

	Amount
Gross salary	$80,000.00
Income tax	$14,520.00
Medicare levy (2%)	$1,600.00
Take-home pay	$63,880.00 a year ($5,323.33 a month)
Super (12%, on top)	$9,600.00

Your marginal rate at $80,000 is 32% (30% tax + 2% levy), so each extra dollar keeps 68 cents. Cross $135,000 and the marginal rate rises to 39%.

Sources: Australian Taxation Office, “Tax rates – Australian resident”, “Medicare levy reduction for low-income earners”, “Low income tax offset”, “Medicare levy surcharge income, thresholds and rates” and “How much super to pay” (ato.gov.au). Checked 13 November 2026.

Important: All content is general information and not professional financial advice, not tax advice, and not a substitute for advice from a qualified adviser. Figures are estimates for the 2025-26 and 2026-27 financial years (1 July – 30 June) and can change. Your actual pay depends on your deductions, HELP/HECS debt and private health cover. Check the current figures on ato.gov.au or speak to a qualified adviser before acting.