How much tax do I pay? Marginal and average tax rates
Updated 13 November 2026.
Australia taxes income in brackets: nothing on the first $18,200, then 15%, 30%, 37% and 45% on each slice above the thresholds, plus the 2% Medicare levy. So two numbers matter: your average rate (total tax as a share of income) and your marginal rate (the tax on your next dollar).
Tax by salary in 2026–27
| Salary | Tax for the year | Average rate | Marginal rate |
|---|---|---|---|
| $30,000 | $1,268.90 | 4.2% | 25% |
| $40,000 | $3,495.00 | 8.7% | 22% |
| $50,000 | $6,270.00 | 12.5% | 33.5% |
| $60,000 | $9,620.00 | 16.0% | 33.5% |
| $70,000 | $12,920.00 | 18.5% | 32% |
| $80,000 | $16,120.00 | 20.2% | 32% |
| $90,000 | $19,320.00 | 21.5% | 32% |
| $100,000 | $22,520.00 | 22.5% | 32% |
| $120,000 | $28,920.00 | 24.1% | 32% |
| $150,000 | $39,570.00 | 26.4% | 39% |
| $180,000 | $51,270.00 | 28.5% | 39% |
| $200,000 | $59,870.00 | 29.9% | 47% |
| $250,000 | $83,370.00 | 33.3% | 47% |
Figures are for an Australian resident with no other income or deductions, including the low income tax offset and Medicare levy. The marginal rate includes the effect of offsets and the levy phasing in or out, so it isn't always a round bracket rate.
A pay rise never leaves you worse off
Moving into a higher bracket only raises the tax on the dollars above the threshold. If your salary goes from $134,000 to $136,000, only the last $1,000 is taxed at 37%.
Why your pay looks different
Your employer withholds tax from each pay using the ATO's formulas, which aim to collect roughly the tax for the year. The difference is settled when you lodge your tax return. See how tax withheld works and the full tax rates.