Australia's financial year runs 1 July to 30 June, so 2026-27 (the year we're now in) brought a small but real tax cut: the second bracket rate dropped from 16% to 15%.
2026-27 resident tax brackets
0% up to $18,200, 15% on $18,201–$45,000, 30% on $45,001–$135,000, 37% on $135,001–$190,000, and 45% above $190,000. This is the second year of a legislated multi-year series of cuts to the lower brackets — the rate falls again to 14% from 1 July 2027.
The Medicare levy
Most residents pay an additional 2% Medicare levy on top of income tax, funding the public health system. Lower earners get relief: no levy below roughly $29,207 for singles, and a reduced phase-in rate between $29,207 and $36,509.
What the rate cut actually saves you
For anyone earning above $45,000, the 1-percentage-point cut on the second bracket is worth up to $268 a year — modest, but automatic; your employer's payroll system applies it without you doing anything.
Superannuation is separate
The 12% Super Guarantee your employer pays into your super fund sits on top of your salary — it isn't part of your taxable income calculation above, though very high earners may face extra Division 293 tax on super contributions.
Estimate your total tax with the Australia Income Tax Calculator.