For the 2025-26 financial year, the top marginal income tax rate of 45 per cent begins to apply to a resident individual's taxable income above **$190,000**.

The resident individual income tax rate scale for 2025-26 is:

| Taxable income | Tax on this income |
|---|---|
| $0 - $18,200 | Nil |
| $18,201 - $45,000 | 16c per $1 over $18,200 |
| $45,001 - $135,000 | $4,288 plus 30c per $1 over $45,000 |
| $135,001 - $190,000 | $31,288 plus 37c per $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c per $1 over $190,000 |

Working: the third bracket ends at $135,000 and the fourth (37 per cent) bracket runs from $135,001 to $190,000. The top bracket starts immediately above the top of that fourth bracket, so the 45 per cent rate applies to each dollar of taxable income above the $190,000 threshold. The 2 per cent Medicare levy is imposed separately and is not part of this figure.

Dollar threshold at which the top bracket starts: **$190,000**.

Controlling authority: the resident individual income tax rates are set by the *Income Tax Rates Act 1986* (Cth), Schedule 7, Part I (which prescribes the rates of tax for resident taxpayers). Income tax itself is imposed under the *Income Tax Act 1986* (Cth) and assessed under the *Income Tax Assessment Act 1936* and *Income Tax Assessment Act 1997* (Cth), administered by the Australian Taxation Office (ATO).