Quick Summary for 2025-26
- ✓Tax-free threshold remains at $18,200
- ✓Stage 3 tax cuts continue (16% rate on $18,201-$45,000)
- ✓30% bracket applies from $45,001 to $135,000
- ✓Superannuation increased to 11.5% (from 11%)
- ✓HELP repayment threshold adjusted for inflation
In This Guide
Current Tax Brackets (2025-26)
The 2025-26 financial year continues to use the Stage 3 tax rates that came into effect on 1 July 2024. Here are the tax brackets for income earned from 1 July 2025 to 30 June 2026:
| Taxable Income | Tax Rate | Tax Payable |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $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 |
Note: These rates do not include the Medicare levy of 2%, which applies to most taxpayers. See the Medicare Levy section for details.
Superannuation Rate Increase
From 1 July 2025, the Superannuation Guarantee (SG) rate increased from 11% to 11.5%. This means employers must contribute more to your super fund.
What This Means For You
- •On a $100,000 salary, your employer now contributes $11,500 to super (up from $11,000)
- •If your salary "includes super", your base salary decreases slightly to accommodate the higher rate
- •The rate will increase again to 12% from 1 July 2026
Previous Years
- 2024-25 11%
- 2023-24 11%
- 2022-23 10.5%
Current & Future
- 2025-26 11.5%
- 2026-27 12%
Tax Calculation Examples
Here's how much tax you'll pay at different income levels under the current Stage 3 rates, compared to the pre-Stage 3 rates:
| Taxable Income | Pre-Stage 3 | Current (2025-26) | Annual Savings |
|---|---|---|---|
| $50,000 | $6,717 | $5,788 | $929 |
| $80,000 | $17,867 | $15,288 | $2,579 |
| $100,000 | $24,367 | $21,288 | $3,079 |
| $120,000 | $30,867 | $27,288 | $3,579 |
| $150,000 | $40,567 | $36,838 | $3,729 |
| $200,000 | $60,667 | $56,138 | $4,529 |
Remember: These figures show income tax only. Your actual take-home pay also depends on Medicare levy, HELP repayments, and superannuation contributions.
Low Income Tax Offset (LITO)
If you earn under $66,667, you may be eligible for the Low Income Tax Offset, which reduces your tax bill by up to $700. Check your eligibility:
Am I eligible for LITO?
The Low Income Tax Offset (LITO) reduces the tax you pay if you earn under $66,667. Check your eligibility below.
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Medicare Levy Explained
In addition to income tax, most Australian residents pay a Medicare levy of 2% of their taxable income. This funds Australia's public health system.
Medicare Levy Thresholds (2025-26)
- •Singles: No levy if income is under $26,000. Reduced levy between $26,000 and $32,500.
- •Families: No levy if combined income is under $43,846. Threshold increases by $4,027 per dependent child.
- •Seniors/Pensioners: Higher thresholds apply. Check with the ATO for specific amounts.
Medicare Levy Surcharge
Higher-income earners without private hospital cover may pay an additional Medicare Levy Surcharge of 1% to 1.5%:
- •$93,001 – $108,000: 1% surcharge
- •$108,001 – $144,000: 1.25% surcharge
- •$144,001+: 1.5% surcharge
Do I need to pay the Medicare Levy Surcharge?
Answer a few questions to find out if the MLS applies to you.
HELP/HECS Repayments (2025-26)
If you have a HELP, VSL, SFSS, SSL, or TSL debt, you must make compulsory repayments once your income exceeds the minimum repayment threshold.
2025-26 HELP Repayment Rates
The minimum repayment threshold for 2025-26 is approximately $54,000-$55,000 (adjusted annually for inflation). If your repayment income is at or above this amount, you'll make compulsory repayments.
Repayment rates range from 1% to 10% of your repayment income, depending on how much you earn.
Will I need to repay my HELP debt?
HELP repayments are automatically deducted from your pay once you earn above the threshold.
Frequently Asked Questions
The 2025-26 tax rates apply to income earned from 1 July 2025 to 30 June 2026. Your employer should be using these rates for PAYG withholding.
Yes, the income tax brackets remain unchanged from 2024-25. The Stage 3 tax cuts continue to apply. The main change for 2025-26 is the superannuation rate increase from 11% to 11.5%.
Your tax bracket is determined by your total taxable income for the financial year. Australia uses a progressive tax system, so you only pay the higher rates on the portion of income above each threshold.
No, compulsory superannuation guarantee contributions (currently 11.5%) are paid on top of your salary and taxed separately at 15% within your super fund. They're not included in your taxable income for income tax purposes.
The superannuation guarantee rate will increase to 12% from 1 July 2026, completing the gradual increases that began in 2021.
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Related Resources
Salary Calculator →
Calculate your take-home pay after tax, super, and HELP
HECS Calculator →
See your HECS/HELP repayment rates for 2025-26
Medicare Calculator →
Calculate Medicare levy and surcharge
Tax Offsets Guide →
LITO, SAPTO, and other tax offsets explained
Salary Sacrifice →
How to reduce your taxable income with packaging
Salary by Role & City →
Compare salaries across different roles and Australian cities
This guide provides general information only and is not financial or tax advice. Tax rates and thresholds are sourced from the Australian Taxation Office (ATO). Please consult a registered tax agent for advice specific to your circumstances.
Last updated: February 2026