2025–26 Tax Year
ATO tax rates, thresholds, and Medicare Levy Surcharge rates for the 2025–26 financial year (1 July 2025 – 30 June 2026).
What's New for 2025–26
Personal Income Tax
- Second marginal rate: 16% on income between $18,201 and $45,000
- Standard brackets: 0%, 16%, 30%, 37%, 45%
- Stage 3 tax cuts (from 1 July 2024) fully in effect
Medicare Levy
- Rate remains 2% of taxable income
Medicare Levy Surcharge
- Base threshold for singles: $101,000
- Base threshold for families: $202,000
- Same tier rates: 1%, 1.25%, 1.5%
HELP/HECS Repayment
- First year of marginal rate system
- Minimum repayment threshold: $67,000
- $0–$67,000: Nil
- $67,001–$125,000: 15c per $1 over $67,000
- $125,001–$179,285: $8,700 + 17c per $1 over $125,000
- $179,286+: 10% of total repayment income
Resident Income Tax Rates
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,200 – $45,000 | 16c for each $1 over $18,200 |
| $45,000 – $135,000 | 30c for each $1 over $45,000 |
| $135,000 – $190,000 | 37c for each $1 over $135,000 |
| $190,000+ | 45c for each $1 over $190,000 |
These rates do not include the 2% Medicare levy.
HELP/HECS Repayment Thresholds
| Repayment income | Repayment |
|---|---|
| $0 – $67,000 | Nil |
| $67,000 – $125,000 | $0 + 15c per $1 over $67,000 |
| $125,000 – $179,285 | $8,700 + 17c per $1 over $125,000 |
| $179,285+ | 10% of total repayment income |
From 2025–26, HELP repayments are calculated using marginal rates (not a single flat rate). Repayment income = taxable income + reportable fringe benefits + net investment losses + reportable super contributions + exempt foreign employment income.
Medicare Levy Surcharge Thresholds
| Tier | Rate | Single | Family |
|---|---|---|---|
| Base | 0% | $0 – $101,000 | $0 – $202,000 |
| Tier 1 | 1% | $101,000 – $118,000 | $202,000 – $236,000 |
| Tier 2 | 1.25% | $118,000 – $158,000 | $236,000 – $316,000 |
| Tier 3 | 1.5% | $158,000+ | $316,000+ |
Family thresholds increase by $1,500 for each dependent child after the first. MLS only applies if you do not have appropriate private hospital cover.
Information sourced from the Australian Taxation Office (ATO) and Treasury legislation. All figures are for informational purposes only and do not constitute financial advice. Last updated: July 2026. Check the ATO website for the most current rates.