Tax withheld for foreign residents
Updated 13 November 2026.
If you're a foreign resident for tax purposes, a separate withholding scale applies. You can't claim the tax-free threshold, so tax is withheld from your first dollar, and you don't pay the Medicare levy.
Withholding rates for 2026–27
- 30% on weekly earnings up to $2,596 (about $135,000 a year)
- 37% on weekly earnings from $2,596 to $3,653 (about $190,000 a year)
- 45% above that
Compared with residents
| Weekly pay | Foreign resident | Resident (threshold claimed) |
|---|---|---|
| $1,000.00 | $300.00 | $138.00 |
| $2,000.00 | $600.00 | $459.00 |
| $3,000.00 | $929.00 | $807.00 |
| $4,000.00 | $1,326.00 | $1,225.00 |
Working holiday makers (on visa subclass 417 or 462) use different rates again. Whether you're a resident for tax isn't the same as your visa status; the ATO has a residency test to help you work it out.
Try your numbers on the pay calculator.