# Foreign resident tax rates and calculator 2026-27

Source: https://calculatax.com/tax/foreign-resident-tax-calculator/
Title: Foreign Resident Tax Rates 2026-27 + Calculator | Calculatax
Last updated: 2026-11-06

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](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-foreign-residents)).

Foreign residents pay tax only on income from Australian sources. The rest of [income tax in Australia](https://calculatax.com/tax/) works the same way: you lodge a return, report your income and deductions, and receive a notice of assessment.

| Default example: $60,000 taxable income | Foreign resident |
|---|---|
| Income tax | $18,000.00 |
| Medicare levy | $0.00 |
| Average tax rate | 30.00% |
| Take-home after tax | $42,000.00 |

*2026-27 foreign resident tax on $60,000. Source: ATO foreign resident rates; Calculatax calculation.*

## 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 |

*Foreign resident tax rates for 2026-27 and 2025-26. Source: ATO.*

### 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 |

*2026-27 foreign resident tax against resident tax at selected incomes. Source: ATO rates; Calculatax calculation.*

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 | Foreign resident |
|---|---|---|
| Tax-free threshold | $18,200 | None |
| [Low income tax offset](https://calculatax.com/tax/low-income-tax-offset/) | Up to $700 | None |
| Rate on income from $18,201 to $45,000 | 15% | 30% |
| Medicare levy | 2% of taxable income | 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 | Foreign resident |
|---|---|---|
| Income tax before offsets | $8,520.00 | $18,000.00 |
| Low income tax offset | −$100.00 | Not available |
| Medicare levy | $1,200.00 | $0.00 |
| Total tax | $9,620.00 | $18,000.00 |
| Take-home | $50,380.00 | $42,000.00 |
| Average rate | 16.03% | 30.00% |

*2026-27 tax on $60,000, resident against foreign resident. Source: ATO; Calculatax calculation.*

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](https://www.ato.gov.au/individuals-and-families/investments-and-assets/foreign-resident-investments/interest-unfranked-dividends-and-royalties) depend on whether a tax treaty applies.

| Withholding rate | Interest | Unfranked dividends | Royalties |
|---|---|---|---|
| Without a tax treaty | 10% | 30% | 30% |
| Under most treaties | Some treaties exempt it in certain cases | 15% | 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.

## Arriving or leaving part way through the year

Residency can change during an income year. It turns on your circumstances, not your visa, so check the ATO tests or a registered tax agent when the answer is unclear.

### Arriving

If you arrive and become a resident, you're taxed as a resident from that date and your tax-free threshold is reduced for the months you were a foreign resident.

The part-year threshold, from the ATO's [tax-free threshold for newcomers to Australia](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/coming-to-australia/tax-free-threshold-for-newcomers-to-australia), is $13,464 plus $4,736 multiplied by your months as a resident and divided by 12. Someone who becomes a resident on 17 April gets three months, a threshold of $14,648.

### Leaving

If you leave and become a foreign resident, income you earn overseas after that date is generally no longer taxed in Australia. Australian-sourced income still is, at 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](https://calculatax.com/tax/working-holiday-maker-tax-calculator/).

## Foreign resident tax questions: tax payable, residency tests, HELP, super and lodging

### 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.*

## Sources

- [ATO: Tax rates for foreign residents](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-foreign-residents)
- [ATO: Schedule 1 coefficients (scale 3)](https://www.ato.gov.au/tax-rates-and-codes/payg-withholding-schedule-1-statement-of-formulas-for-calculating-amounts-to-be-withheld/coefficients-to-use-in-formulas-for-withholding-from-weekly-payments)
- [ATO: Tax rates for Australian residents](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents)