Income Tax — Resident Rates & Offsets
Income Tax — Resident Rates & Offsets
Resident marginal tax rates for 2025-26, the legislated cuts ahead, and the offsets that matter to tradies.
Resident rates 2025-26 (excludes 2% Medicare levy)
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c per $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c per $1 over $135,000 |
| $190,001 + | $51,638 + 45c per $1 over $190,000 |
Legislated changes ahead
| Second bracket from 1 Jul 2026 | 16% → 15% |
| Second bracket from 1 Jul 2027 | 15% → 14% |
Offsets & levies
| Low Income Tax Offset | up to $700 (income at or below $37,500) |
| Medicare levy | 2% of taxable income |
| Medicare Levy Surcharge (singles) | starts $101,000 (no private hospital cover) |
| Medicare Levy Surcharge (families) | starts $202,000 (+$1,500 per child after the first) |
| Small business income tax offset | 16% of tax on net SB income, capped $1,000 (turnover under $5m) |
Guidance only — not financial advice. Rates 2025-26; forward changes are legislated. Verify at ato.gov.au.
Sources: ATO — Individual income tax rates · ATO — Medicare levy surcharge · ATO — Small business income tax offset
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