The 2026-27 non-resident scale
| Taxable income | Rate |
|---|---|
| $0 – $135,000 | 30% |
| $135,000 – $190,000 | 37% |
| $190,000 and over | 45% |
The bracket boundaries match the resident scale; the difference is the missing bottom of the ladder. Residents climb through a $18,200 tax-free band and a 15% band before reaching 30%. Non-residents start at 30% on dollar one. The side-by-side scales live on the 2026-27 tax brackets page.
No threshold, no Medicare levy
Worked example: $90,000 of Australian income
The Medicare levy exemption softens the blow slightly, since non-residents cannot use the public health system the levy funds, but the missing threshold and 15% band dominate at every income level. Note also what is being taxed: foreign residents are taxed on Australian-sourced income only, while residents are taxed on worldwide income.
The four residency tests
Tax residency is its own concept, separate from citizenship and immigration status. You are a resident for tax purposes if you satisfy any one of the ATO's four tests:
- The resides test
If you actually reside in Australia in the ordinary sense (your life is here), you are a resident and no further test applies.
- The domicile test
Your domicile (permanent legal home) is in Australia, unless the ATO is satisfied your permanent place of abode is outside the country.
- The 183-day test
Present in Australia for more than half the income year, unless your usual place of abode is overseas and you do not intend to take up residence here.
- The Commonwealth superannuation test
A narrow test for Australian government employees posted overseas who belong to the CSS or PSS schemes.
Getting the answer wrong on a TFN declaration is expensive in both directions: residents marked as foreign get over-withheld from the first dollar, a scenario covered in why is my PAYG tax so high. To see either scale applied to your own income, the PAYG calculator handles resident, non-resident and working holiday maker status.
Working holiday makers are a third category
Subclass 417 and 462 visa holders sit on their own 2026-27 scale: 15% to $45,000, then the ordinary resident brackets above that. It is neither the resident nor the foreign resident treatment, so a backpacker should not be using the 30% figures on this page unless they fall outside the working holiday maker rules.
Frequently asked questions
What are the non-resident tax rates in Australia for 2026-27?
Do non-residents get the tax-free threshold?
Do non-residents pay the Medicare levy?
Am I a non-resident if I am here on a work visa?
What income do non-residents pay Australian tax on?
Sources
- ATO: Tax rates: foreign residents
- ATO: Your tax residency (the four tests)
Related resources
2026-27 Tax Brackets
Resident, non-resident and WHM scales side by side
Open →PAYG Calculator
Run your income under any residency status
Open →Why Is My PAYG Tax So High?
Wrong residency is cause number six
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Narelle Hartigan is a CPA-qualified tax accountant with over a decade of experience in Australian personal taxation and payroll. She founded PAYG Calculator Australia to make tax withholding easy for every Australian worker to understand.