Working holiday maker tax rates 2026–27
Working holiday makers are taxed on a separate scale set out in the ATO's Schedule 15. The first $45,000 is taxed at 15 cents per dollar, with no tax-free threshold. Above that, the normal 30%, 37% and 45% brackets apply.
| Taxable income | Rate |
|---|---|
| $0 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 and over | 45% |
How to use the calculator
- Enter your pay before tax and how often you are paid.
- Leave the TFN box ticked if you've given your employer your tax file number.
- Untick the registered-employer box if your employer isn't registered with the ATO for working holiday maker withholding.
- Read your yearly and weekly take-home and the tax rate that applies.
Worked example
Earning $40,000 across the year with a registered employer, you pay $6,000 in tax and take home $34,000. An Australian resident on the same income would pay $3,495 in tax and Medicare levy after the tax-free threshold and LITO — so residents pay less at this income, but working holiday makers pay less than other foreign residents, who pay 30% from the first dollar. At $55,000 a working holiday maker pays $9,750.
Who counts as a working holiday maker
These rates apply if you hold a subclass 417 Working Holiday visa, a subclass 462 Work and Holiday visa, or a bridging visa linked to an application for one of those visas. It doesn't matter whether you are a resident or foreign resident for tax purposes, with one exception: residents from countries with a non-discrimination article in their tax treaty with Australia may be taxed at ordinary resident rates. Check the ATO guidance if that may apply to you.
No TFN, unregistered employers
If you don't give your employer your TFN within 28 days of starting, they must withhold 45% of every payment. If your employer hasn't registered with the ATO as a working holiday maker employer, they must withhold at foreign resident rates — 30% from the first dollar — rather than 15%. Tick and untick the boxes to see the difference. Your actual tax is still worked out at the working holiday maker rates when you lodge your tax return, so over-withheld tax is refunded.
Super and leaving Australia
Your employer must pay 12% super for you, and from 1 July 2026 it must reach your fund within seven business days of each payday. When you leave Australia and your visa ends, you can claim your super as a departing Australia superannuation payment, which is taxed at a special rate. Your super isn't included in the take-home figure.
Medicare levy and study loans
Working holiday makers generally don't pay the Medicare levy and can't hold a HELP or other study loan debt, so neither appears in the result. Tax offsets can't be claimed through withholding either.
Checking your payslip
With a registered employer and your TFN provided, the tax on each pay should be close to 15% of your gross pay until your total earnings for the year pass $45,000. If you see about 30% taken out, ask whether your employer is registered for working holiday maker withholding. If you see 45%, check that your TFN reached payroll. Keep your payslips: you'll need the totals for your tax return.
Lodging your tax return
Working holiday makers lodge an Australian tax return for each income year they earn income here, usually after 30 June or when leaving Australia. If too much tax was withheld — for example because of a missing TFN — the excess is refunded. Your employer reports your income through Single Touch Payroll, so it appears in myGov ready for lodgment.
Remember too that the $45,000 limit is counted across all your employers in the income year, not per job.
Frequently asked questions
What is the backpacker tax rate in 2026–27?
15% on the first $45,000 of income, then 30% up to $135,000, 37% up to $190,000 and 45% above.
Do working holiday makers get the tax-free threshold?
No. Tax starts from the first dollar earned.
Why is my employer taking 30%?
Your employer may not be registered with the ATO as a working holiday maker employer. Unregistered employers must withhold at foreign resident rates.
What happens if I don't give my TFN?
Your employer must withhold 45% from every payment until you provide it.
Do I pay the Medicare levy?
Working holiday makers generally don't pay the Medicare levy.
