The foreign resident rates
The ATO says to use this table if you are an individual and were a foreign resident for tax for the full income year.
| Taxable income | Tax on that 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 |
Taxable income means income after allowable deductions. Foreign residency is decided by the residency tests, not by citizenship, so an Australian citizen living abroad can fall into this table. See the four residency tests for how that is decided.
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Are the 2026-27 rates the same?
The ATO's foreign resident rates page was last updated on 1 June 2026 and its newest table is headed 2025-26. The ATO's page for Australian residents has already been rolled forward to 2026-27 (last updated 13 August 2026).
The law explains why the foreign resident brackets do not move. The Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 (Act No. 3 of 2024) sets the non-resident table for the 2024-25 year "or a later year of income". It builds the table from the second and third resident rates (30% and 37%) plus 45% at the top. The Treasury Laws Amendment (More Cost of Living Relief) Act 2025 (Act No. 28 of 2025) changes only the lowest resident rate, from 16% to 15% in 2026-27 and 14% in 2027-28. Foreign residents do not use that lowest rate. The ATO page is the place to confirm once it shows 2026-27.
Worked examples
The table compares foreign resident tax with the 2026-27 resident scale on the same taxable income. The resident column excludes the 2% Medicare levy, which the ATO's resident page notes is not included in its rates.
| Taxable income | Foreign resident | Australian resident, 2026-27 |
|---|---|---|
| $30,000 | $9,000 | $1,770 |
| $60,000 | $18,000 | $8,520 |
| $150,000 | $46,050 | $36,570 |
| $250,000 | $87,850 | $78,370 |
The arithmetic behind each row:
- $30,000. Foreign resident: 30% x $30,000 = $9,000. Resident: 15% x ($30,000 - $18,200) = 15% x $11,800 = $1,770.
- $60,000. Foreign resident: 30% x $60,000 = $18,000. Resident: $4,020 + 30% x ($60,000 - $45,000) = $4,020 + $4,500 = $8,520.
- $150,000. Foreign resident: $40,500 + 37% x ($150,000 - $135,000) = $40,500 + $5,550 = $46,050. Resident: $31,020 + $5,550 = $36,570.
- $250,000. Foreign resident: $60,850 + 45% x ($250,000 - $190,000) = $60,850 + $27,000 = $87,850. Resident: $51,370 + $27,000 = $78,370.
At $60,000 a resident would also pay the Medicare levy of 2%, which is $1,200 if the full levy applies. A foreign resident does not pay it.
What the rates apply to
Foreign residents declare Australian-sourced income in an Australian tax return. The ATO lists employment income, rental income, Australian pensions and annuities, and capital gains on taxable Australian property. Australian-sourced interest, dividends and royalties are not declared where the payer has already withheld tax. Income earned outside Australia generally does not need to be declared, with exceptions such as certain study and training loan debts. See HELP repayments from overseas.
For rent on an Australian property, the rental income guide covers what is declared, and the deductions guide covers what reduces taxable income.
Part-year residents
If you stop being an Australian resident part-way through an income year, the ATO says to answer "yes" to the resident question on your return. You then get a pro-rata tax-free threshold: $13,464 plus ($4,736 divided by 12, multiplied by the number of months you were an Australian resident, counting the month you left). For six months that is $13,464 + ($4,736 / 12 x 6) = $13,464 + $2,368 = $15,832. From the date you cease to be a resident, you do not need to return foreign-source income.
Working holiday makers
Working holiday makers on a subclass 417 or 462 visa are taxed on a separate scale if they are foreign residents, or Australian residents from a country without a non-discriminatory article in its tax treaty. The ATO page, last updated 1 June 2026, shows these 2025-26 rates and does not yet list 2026-27.
| Taxable income (2025-26) | Tax on that income |
|---|---|
| $0 to $45,000 | 15c for each $1 |
| $45,001 to $135,000 | $6,750 plus 30c for each $1 over $45,000 |
| $135,001 to $190,000 | $33,750 plus 37c for each $1 over $135,000 |
| $190,001 and over | $54,100 plus 45c for each $1 over $190,000 |
Keep reading
- Australian tax residency tests explained: are you a resident or a foreign resident?
- Tax on rental income for non-resident landlords: how the ATO treats rent from Australia
- Tax deductions for non-resident landlords: what you can and cannot claim
- Tax for Australian expats: what the ATO expects while you live overseas
- Do Australian expats pay the foreign buyer stamp duty and land tax surcharges?
- Double tax agreements and Australian property: how treaties treat rent and sale gains
Frequently asked questions
Is there a tax-free threshold for foreign residents?
No. The ATO says a foreign resident has no tax-free threshold, so tax applies from the first dollar of Australian-sourced taxable income at 30%. The $18,200 threshold in the resident scale is available only while you are an Australian resident, and in a part-year case it is pro-rated by the months you were a resident.
Do foreign residents pay the Medicare levy?
No. The ATO says foreign residents do not pay the Medicare levy. You claim the exemption in your Australian tax return for the number of days in the income year you were a foreign resident.
Are capital gains on Australian property taxed at these rates?
A foreign resident declares capital gains on taxable Australian property in the return, so the taxable part of the gain sits on top of other Australian income in the same table. The CGT discount and main residence exemption work differently for foreign residents. See the main residence exemption guide.
Does being an Australian citizen change the rates?
Not by itself. The rate table depends on tax residency for the year, not citizenship. A citizen who is a resident uses the resident scale, and a citizen who is a foreign resident for the full year uses the table above.
Sources
- Tax rates: foreign residents, Australian Taxation Office
- Tax rates: Australian residents, Australian Taxation Office
- Tax rates: working holiday makers, Australian Taxation Office
- Foreign and temporary residents, Australian Taxation Office
- Foreign and temporary resident income, Australian Taxation Office
- Your tax residency, Australian Taxation Office
- Living overseas and becoming a foreign tax resident, Australian Taxation Office
- Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024, Act No. 3 of 2024
- Treasury Laws Amendment (More Cost of Living Relief) Act 2025, Act No. 28 of 2025
Checked 7 October 2026.
Expat Finance is an independent guide. It is not a lender, mortgage broker or credit provider, it does not hold an Australian credit licence, and it does not give credit, legal, tax or migration advice. It is not affiliated with any bank, the ATO or the Foreign Investment Review Board. General information only, not legal, tax, migration or financial advice.