Non-resident income tax for 2026-27.
Tax payable
—
Net income
—
Average rate
—
Taxed from the very first dollar
If the ATO treats you as a foreign resident for tax purposes, your Australian-sourced income is taxed on a harsher schedule than a resident's. There is no $18,200 tax-free threshold. Instead, 30 percent applies from the first dollar you earn here, then 37 percent above $135,000 and 45 percent above $190,000 for 2026-27. You also do not pay the 2 percent Medicare levy, because you are not entitled to Medicare, but that small relief rarely makes up for losing the tax-free threshold. This calculator applies that foreign-resident schedule and shows your tax, your net income, and the average rate you are really paying.
Residency is about facts, not your visa
The single most important point is that tax residency is not the same as your immigration status or your citizenship. The ATO looks at where you actually live, your ties, your habits and how long you intend to stay, using tests such as the resides test and the 183-day test. Someone on a temporary visa can still be a tax resident, and an Australian citizen working abroad long-term can become a non-resident. Getting this wrong is expensive in both directions, so if your situation is borderline it is worth confirming your status before you rely on these figures.
A $100,000 salary, foreign resident
Take a foreign resident earning $100,000 of Australian-sourced income. The whole amount falls inside the first band, so the tax is a flat 30 percent, which is $30,000. There is no Medicare levy to add. Net income is $70,000, and because no part of the income escaped tax, the average rate is exactly 30 percent. Compare that with a resident on the same income, who shelters the first $18,200 entirely and pays noticeably less overall.
| Line | Foreign resident |
|---|
Offsets you lose, and HELP debts you keep
Foreign residents generally cannot claim the low-income tax offset and most other resident-only concessions, which is part of why the effective rate stays so high at lower incomes. Two edge cases catch people out. First, if you hold a HECS or HELP study debt and move overseas, you still have a compulsory repayment obligation based on your worldwide income, and you must report it to the ATO. Second, interest, dividends and royalties paid to non-residents are usually handled through separate withholding tax rather than this schedule, so this calculator is aimed at salary, wages and business income with an Australian source.
Who this is built for
This tool suits people leaving or arriving mid-career: an expat taking an Australian contract, a returning Australian still classed as non-resident for part of the year, or a globally mobile worker checking the cost of an Australian-sourced bonus. A practical tip worth its weight: if you genuinely change residency partway through the year, you are taxed as a part-year resident, which blends the two schedules and gives you a pro-rated tax-free threshold. In that case neither this calculator nor a pure resident one tells the full story, and the part-year rules will usually treat you more kindly than the flat foreign-resident rates shown here.
Do non-residents pay tax on overseas income?
No. Foreign residents are taxed by Australia only on income that has an Australian source, such as salary for work performed here or rent from Australian property. Income earned entirely overseas is outside the Australian net, which is the flip side of losing the tax-free threshold.
Can a tax treaty reduce what I owe?
It can. Australia has tax treaties with many countries that decide which country gets to tax particular income and provide relief from being taxed twice. If your home country has a treaty with Australia, it may cap the rate on certain income or shift taxing rights, so treaty positions are worth checking alongside these baseline figures.