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United Kingdom vs Australia
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom
vs
๐Ÿ‡ฆ๐Ÿ‡บ Australia
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“45%
Thresholds remain frozen; fiscal drag continuing
No change
0โ€“45%
+ 2% Medicare; thresholds indexed to CPI
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0โ€“20%
Standard 20% maintained
No change
10%
No change planned
No change
Corporate Tax Rate
Corporate Tax Rate
19โ€“25%
25% main rate; possible future reform discussions
No change
25โ€“30%
Stable; Pillar Two active for large MNCs
No change
Capital Gains Tax
Capital Gains Tax
18โ€“24%
Post-Oct 2024 rates in full effect
No change
0โ€“22.5%
50% discount maintained
No change
Social Security & Payroll
Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
12%
12% super guarantee; target rate reached
No change
State, Regional & Local Taxes

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom โ€” Devolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically ยฃ1,200โ€“ยฃ4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

๐Ÿ‡ฆ๐Ÿ‡บ Australia โ€” State & Territory Taxes

Australia's 6 states and 2 territories levy payroll tax (4.75%โ€“6.85%), stamp duty on property, and land tax on investment properties. There is no state income tax โ€” income tax is federal only. The Stage 3 tax cuts (effective July 2024) restructured brackets significantly. The ACT is progressively replacing stamp duty with broad-based land value tax. Councils levy rates on property owners.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

United Kingdom vs Australia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: United Kingdom and Australia have similar top income tax rates (0โ€“45% vs 0โ€“45%).

๐Ÿ›’ VAT/Sales Tax: United Kingdom has a higher consumption tax (0โ€“20% vs 10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฆ๐Ÿ‡บ Australia taxes investment gains at a lower rate (22.5% vs 24%), benefiting investors.

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