Foreign resident tax rates and calculator 2026-27
Foreign resident tax rates for 2026-27 start at 30% from the first dollar up to $135,000, then 37% and 45%. On $60,000, a foreign resident pays $18,000, against $9,620 for a resident after the low income tax offset and Medicare levy (ATO foreign resident rates (opens in a new tab)).
The link carries the numbers you entered, so anyone who opens it sees the same result.
2026-27 key figures
- Tax-free threshold
- None
- First rate
- 30% up to $135,000
- Medicare levy
- Not payable
- Top rate
- 45% over $190,000
Take-home pay per year
$42,000
From $60,000 gross per year
- You keep 70.0%
- Income tax 30.0%
Breakdown
| Item | Per year |
|---|---|
| Gross income | $60,000 |
| Income tax before offsets | $18,000 |
| Low income tax offset (not available to foreign residents) | $0 |
| Medicare levy (not payable by foreign residents) | $0 |
| Total tax | $18,000 |
| Take-home pay | $42,000 |
Tax per bracket
| Taxable income | Rate | Your income in band | Tax |
|---|---|---|---|
| $0 to $135,000 | 30% | $60,000 | $18,000 |
| $135,001 to $190,000 | 37% | $0 | $0 |
| Over $190,000 | 45% | $0 | $0 |
- Total tax per year
- $18,000
- Effective tax rate
- 30.00%
- Marginal tax rate
- 30%
- A resident would pay
- $9,620
- After LITO and the Medicare levy
Compared with 2025-26: Foreign resident rates did not change on 1 July 2026, so your income tax is the same as in 2025-26. See how the 2026-27 tax cut works
2026-27 foreign resident rates: 30% from the first dollar
Foreign residents pay 30% on every dollar up to $135,000. There's no tax-free band and no lower rate.
| Taxable income | Tax on this income |
|---|---|
| $0 to $135,000 | 30c for each $1 |
| $135,001 to $190,000 | $40,500 plus 37c for each $1 over $135,000 |
| $190,001 and over | $60,850 plus 45c for each $1 over $190,000 |
Why the 2025-26 table still applies in 2026-27
The ATO rates page still shows only a 2025-26 table. The 2026-27 rates are the same: the scale 3 withholding formula that applies from 1 July 2026 uses 30%, 37% and 45% at the same thresholds. The 2025 law change cut only the resident 16% rate.
| Taxable income | Foreign resident tax | Average rate | Resident tax, LITO and Medicare levy |
|---|---|---|---|
| $30,000 | $9,000 | 30.00% | $1,268.90 |
| $45,000 | $13,500 | 30.00% | $4,595.00 |
| $100,000 | $30,000 | 30.00% | $22,520.00 |
| $135,000 | $40,500 | 30.00% | $33,720.00 |
| $150,000 | $46,050 | 30.70% | $39,570.00 |
| $200,000 | $65,350 | 32.68% | $59,870.00 |
The gap narrows as income rises, from $8,380 at $60,000 to $5,480 at $200,000. Residents pay the 2% Medicare levy on every dollar, which partly offsets their lower rates.
No tax-free threshold, no LITO, no Medicare levy
Foreign residents miss out on the main resident concessions, but they don't pay the levy.
What applies
Resident
- Tax-free threshold
- $18,200
- Low income tax offset
- Up to $700
- Rate on income from $18,201 to $45,000
- 15%
- Medicare levy
- 2% of taxable income
Foreign resident
- Tax-free threshold
- None
- Rate on income from $18,201 to $45,000
- 30%
- Medicare levy
- None
Skipping the levy saves 2% of taxable income, but at most incomes it's far smaller than the extra income tax.
New resident-only measures that widen the gap
The $1,000 standard deduction for work-related expenses, available from 2026-27, is limited to Australian residents. So is the working Australians tax offset of up to $250, which starts in 2027-28.
The resident 15% rate also falls to 14% from 1 July 2027. A resident on $60,000 would then pay $268 less income tax, while the foreign resident rate stays at 30% unless the law changes.
Worked example: $60,000 as a resident vs a foreign resident
Take $60,000 of Australian employment income in 2026-27, with no deductions.
$60,000 taxable income
Resident
- Income tax before offsets
- $8,520.00
- Low income tax offset
- −$100.00
- Medicare levy
- $1,200.00
- Total tax
- $9,620.00
- Take-home
- $50,380.00
- Average rate
- 16.03%
Foreign resident
- Income tax before offsets
- $18,000.00
- Low income tax offset
- Not available
- Medicare levy
- $0.00
- Total tax
- $18,000.00
- Take-home
- $42,000.00
- Average rate
- 30.00%
The foreign resident pays $8,380 more. The resident's income tax is 15% of $26,800 plus 30% of $15,000, less a $100 offset, while the foreign resident's is a flat 30% of $60,000.
Employers withhold from foreign residents under scale 3 of Schedule 1. On $60,000 paid weekly, that's $346 a week, or $17,992 over 52 weeks, within $8 of the final tax.
Check the scale on your payslip. If an employer wrongly applies the tax-free threshold through scale 2, only $9,724 is withheld over the year, leaving a bill of more than $8,000.
Interest, dividends and royalties: withholding instead of rates
Interest, unfranked dividends and royalties paid to foreign residents usually have non-resident withholding tax taken out at source. That withholding is generally the final tax on the payment, so the amounts don't go through the rates above.
The ATO's withholding rates for interest, unfranked dividends and royalties (opens in a new tab) depend on whether a tax treaty applies.
Withholding rate
Interest
- Without a tax treaty
- 10%
- Under most treaties
- Some treaties exempt it in certain cases
Unfranked dividends
- Without a tax treaty
- 30%
- Under most treaties
- 15%
Royalties
- Without a tax treaty
- 30%
- Under most treaties
- 10%
Australian rental income and capital gains on Australian property are different. They go on a tax return and are taxed at the foreign resident rates.
Situations the foreign resident calculator skips
The calculator applies foreign resident rates to the taxable income you enter. It doesn't decide your residency, split a part-year, or apply a tax treaty.
It leaves out non-resident withholding tax on investment income, capital gains rules for foreign residents, and HELP repayments. Working holiday makers on 417 and 462 visas have their own rates, set out in the working holiday maker tax calculator.
Foreign resident tax questions: tax payable, residency tests, HELP, super and lodging
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Last reviewed
How much tax do non-residents pay in Australia?
Non-residents pay 30% on every dollar of Australian-sourced taxable income up to $135,000 in 2026-27. Above that, the rate is 37% to $190,000 and 45% after. On $60,000, the tax is $18,000, an average rate of 30.00%. No Medicare levy is added.
Does a non-resident have to pay tax in Australia?
Yes, on income from Australian sources such as wages for work done here, Australian rent and some capital gains. Foreign income isn't taxed in Australia while you're a foreign resident. There's no tax-free threshold, so tax starts at 30% from the first dollar of Australian-sourced taxable income.
What does non-resident mean for tax purposes?
It means you're not an Australian resident under the tax residency tests: the resides test, the domicile test, the 183-day test and the Commonwealth superannuation fund test. Tax residency is separate from visa or citizenship status. A foreign resident on $60,000 pays $18,000 against $9,620 for a resident.
Does a HELP debt still apply if I become a foreign resident?
Yes. A HELP debt stays in place after you move overseas or become a foreign resident. Compulsory repayments are worked out on worldwide income, using the same $69,528 threshold for 2026-27. On $60,000 of worldwide income, nothing is due for the year, but the balance is still indexed on 1 June.
Do foreign residents get super from their employer?
Generally, yes. Employers pay super guarantee of 12% on qualifying earnings for eligible employees, whatever their residency. On $60,000 that's $7,200 a year. Temporary visa holders who leave Australia can later claim that super as a departing Australia superannuation payment. That payment is taxed at 35% on the taxed element and 45% on the untaxed element. Working holiday makers pay 65% on both.
Do foreign residents need to lodge a tax return?
Usually, if you earn Australian-sourced income other than interest, dividends or royalties that already had final withholding taken out. Wages, rent and capital gains from Australian property all go on a return. On $60,000 of wages, the return confirms tax of $18,000 against the $17,992 withheld under scale 3, leaving $8 to pay.
Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.
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