# Australian Resident Individual Income Tax – Top Marginal Rate Threshold (FY 2025-26)

## Threshold at which the 45% rate begins

**$190,001**

The 45% top marginal rate applies to each dollar of taxable income **above $190,000**.

### Working – 2025-26 resident individual tax brackets

| Taxable income | Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 19% |
| $45,001 – $135,000 | 32.5% |
| $135,001 – $190,000 | 37% |
| **$190,001 and above** | **45%** |

The brackets above reflect the legislated position for FY 2025-26 (the Stage 3 changes operative from 1 July 2024 are fully in effect). The Medicare levy (2%) is a separate impost and is not included in these rates, consistent with the question.

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## Controlling authority

The income tax rates for resident individuals are set by the **Commonwealth Parliament of Australia**, through the *Income Tax Rates Act 1986* (Cth). Parliament enacts (and amends) the schedule of rates; the Australian Taxation Office (ATO) administers collection but does not set the rates.