Australian Income Tax Brackets 2024-25
Current rates for Australian residents · FY 1 July 2024 – 30 June 2025
Resident Tax Rates
| Taxable Income | Tax Rate | Tax on This Bracket |
|---|---|---|
| $0 – $18,200 | Nil | $0 |
| $18,201 – $45,000 | 16% | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,288 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,288 + 37c for each $1 over $135,000 |
| $190,001+ | 45% | $51,638 + 45c for each $1 over $190,000 |
* The above rates do not include the 2% Medicare levy. Rates apply to taxable income after deductions.
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Low Income Tax Offset (LITO)
If you earn under $66,667, you're eligible for a tax offset that reduces the amount of income tax you pay. The maximum offset is $700 for incomes up to $37,500. Our calculator automatically applies this.
How Australia's Progressive Tax System Works
Australia uses a progressive (marginal) tax system. This means you only pay the higher rate on the portion of income that falls within each bracket — not your entire income.
Example: If you earn $60,000, you pay 0% on the first $18,200, 19% on $18,201–$45,000, and 32.5% on $45,001–$60,000. Your effective (average) tax rate will be much lower than 32.5%.