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πŸ‡ΊπŸ‡Έ United States vs πŸ‡¦πŸ‡Ί Australia

US earners keep ~$9,000 more than Australia at $150k

2026 tax data Β· Last reviewed: April 1, 2026 Β· Source: methodology

TL;DR β€” Key Takeaways

  • β†’At $150,000 salary: US (avg state) take-home β‰ˆ $111,000 vs. Australia β‰ˆ $102,000.
  • β†’Australia's 37% bracket applies to AUD 120k–$180k; the top 45% rate kicks in above AUD 180k.
  • β†’Medicare Levy: 2% of taxable income for most earners.
  • β†’Employer superannuation (11.5%) is on top of salary β€” a benefit, but invisible to take-home calculation.
  • β†’Australia does not tax capital gains at a separate rate β€” gains are added to income (50% discount if held >12 months).

Net Pay at $150,000 Salary (2026)

πŸ‡ΊπŸ‡Έ

United States

$111,000

estimated net take-home

Top rate: 37%

πŸ‡¦πŸ‡Ί

Australia

$102,000

estimated net take-home

Top rate: 45%

Annual delta at $150,000

πŸ‡ΊπŸ‡Έ United States saves $9,000/year

Over 10 years at 7% compounding: $133,020 more

Key Tax Differences

FactorπŸ‡ΊπŸ‡Έ United StatesπŸ‡¦πŸ‡Ί Australia
Top income tax rate37%45%
Effective rate at $100k18%28%
Taxation basisWorldwideWorldwide
Special regimesForeign Earned Income Exclusion (FEIE)None

πŸ‡ΊπŸ‡Έ United States β€” Key Tax Facts

  • β†’US citizens and Green Card holders owe US tax on worldwide income regardless of where they live.
  • β†’Federal income tax: 10%–37% progressive brackets; standard deduction $16,150 for single filers (2026).
  • β†’FICA (Social Security + Medicare): 7.65% employee share on wages up to $184,500 (SS cap).
  • β†’State income tax: ranges from 0% (Florida, Texas, Nevada) to 13.3% (California).
  • β†’Foreign Earned Income Exclusion: up to $132,900 excluded for qualifying expats (2026).
  • β†’Self-employed pay 15.3% self-employment tax (both sides of FICA).

Full United States tax guide β†’

πŸ‡¦πŸ‡Ί Australia β€” Key Tax Facts

  • β†’Income tax: 0% below AUD 18,200; 19%–45% progressive.
  • β†’Medicare Levy: 2% of taxable income (standard; reductions apply for low earners).
  • β†’Superannuation: employers must contribute 11.5% of earnings into the employee's super fund.
  • β†’No income tax on first AUD 18,200 β€” significant for lower-income earners.
  • β†’Worldwide taxation for tax residents; 2% Medicare Levy surcharge for those without private health insurance.
  • β†’Capital gains discount: 50% reduction on gains if asset held >12 months.

Full Australia tax guide β†’

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Estimates assume a single filer with no dependents and no treaty benefits. Not tax advice. See methodology.