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United States vs Australia
Tax Rate Comparison

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

🇺🇸 United States
vs
🇦🇺 Australia
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
10–37%
TCJA provisions extended; no sunset
No change
0–45%
+ 2% Medicare; thresholds indexed to CPI
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
10%
No change planned
No change

Corporate Tax Rate

Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
25–30%
Stable; Pillar Two active for large MNCs
No change

Capital Gains Tax

Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
0–22.5%
50% discount maintained
No change

Social Security & Payroll

Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
12%
12% super guarantee; target rate reached
No change
State, Regional & Local Taxes

🇺🇸 United StatesState & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

🇦🇺 AustraliaState & Territory Taxes

Australia's 6 states and 2 territories levy payroll tax (4.75%–6.85%), stamp duty on property, and land tax on investment properties. There is no state income tax — 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.

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

United States vs Australia: Key Tax Differences (2026)

💰 Income Tax: 🇦🇺 Australia has a higher top income tax rate (10–37% vs 0–45%). 🇺🇸 United States is more favourable for high earners.

🛒 VAT/Sales Tax: United States has a higher consumption tax (0–11% vs 10%).

🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇺🇸 United States taxes investment gains at a lower rate (20% vs 22.5%), benefiting investors.

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All 🇺🇸 United States comparisons →All 🇦🇺 Australia comparisons →