Working Holiday Visa Tax Calculator: How Much Tax Do Backpackers Pay in Australia?
Published 3 March 2026 · 6 min read
On a Working Holiday visa (Subclass 417 or 462) in Australia? Understanding your tax obligations as a Working Holiday Maker (WHM) is simpler than you might think — but there are some important differences from ordinary Australian residents. Most notably, you pay a flat 15% tax on your first $45,000 of income with no tax-free threshold. This is sometimes called the "backpacker tax."
This guide covers everything you need to know about Working Holiday Maker tax for FY 2025-26, including the 15% flat rate, Medicare Levy exemption, superannuation, and how to claim your super back when you leave Australia. Use our take-home pay calculator to estimate your fortnightly and weekly pay instantly.
What Is the Working Holiday Maker (Backpacker) Tax?
Working Holiday Makers — people on a Subclass 417 or 462 visa — are taxed under a special regime by the ATO. Unlike regular Australian residents who get a $18,200 tax-free threshold and progressive rates starting at 0%, WHMs pay a flat 15% on every dollar earned up to $45,000 from their very first dollar.
This rate was introduced in 2017 after significant public debate and is sometimes called the "backpacker tax." While 15% sounds low, the key difference is that there's no tax-free threshold — a regular Australian resident earning $30,000 pays only 16% on income above $18,200, effectively paying much less overall. A WHM earning the same $30,000 pays 15% on all of it.
Key rules for Working Holiday Makers (FY 2025-26):
- No tax-free threshold — tax starts from your very first dollar of income
- Flat 15% rate on your first $45,000 earned in Australia
- Standard rates apply above $45,000 (30%, 37%, 45%)
- No LITO — the Low Income Tax Offset does not apply
- No Medicare Levy — most WHMs are exempt (see below)
- Super still applies — your employer must pay 12% SGC on top of your wages
It's important to know that this 15% rate applies per employer, not per financial year as a whole. If you earn $30,000 with one employer and then $30,000 with another, each employer applies 15% to the first $45,000 — but your total tax return at the end of the year is reconciled based on your total income for the year. The ATO will calculate the correct tax when you lodge your return.
Working Holiday Visa Tax Rates (FY 2025-26)
Here are the tax rates that apply to Working Holiday Makers for FY 2025-26:
| Taxable Income | Tax Rate | Notes |
|---|---|---|
| $0 – $45,000 | 15% flat | No tax-free threshold, no LITO |
| $45,001 – $135,000 | 30% | Standard resident rate (Stage 3) |
| $135,001 – $190,000 | 37% | Standard resident rate |
| $190,001+ | 45% | Standard resident rate |
Note that income above $45,000 is taxed at the same rates that apply to Australian residents under the Stage 3 Tax Cuts — there's no special penalty for earning more as a WHM. The 15% flat rate only applies to the first $45,000.
See our income tax calculator for more detail on how Australian marginal rates work in general.
Worked Examples: What You'll Actually Take Home
Let's work through some realistic income scenarios for backpackers and working holiday workers in FY 2025-26. These assume you have no Medicare Levy (most WHMs are exempt — see the next section).
Example 1: Earning $20,000 (Part-Year or Part-Time)
Example 2: Earning $40,000 (Full Year at Minimum Wage)
Example 3: Earning $60,000 (Skilled or Farm Work Above Threshold)
Quick Reference Table: WHM Take-Home Pay (FY 2025-26)
| Annual Income | Total Tax | Take-Home | Weekly Pay | Effective Rate |
|---|---|---|---|---|
| $15,000 | $2,250 | $12,750 | $245 | 15.0% |
| $25,000 | $3,750 | $21,250 | $409 | 15.0% |
| $35,000 | $5,250 | $29,750 | $572 | 15.0% |
| $45,000 | $6,750 | $38,250 | $736 | 15.0% |
| $55,000 | $9,750 | $45,250 | $870 | 17.7% |
| $70,000 | $14,250 | $55,750 | $1,072 | 20.4% |
Medicare Levy excluded (assumed exempt). Super not included — your employer pays an additional 12% SGC on top of your gross income.
Medicare Levy: Almost All WHMs Are Exempt
The Medicare Levy is normally 2% of taxable income, paid by Australian residents to fund the public healthcare system. However, most Working Holiday Makers are not eligible to enrol in Medicare and are therefore exempt from the levy.
The exceptions are WHMs from countries with a Reciprocal Health Care Agreement (RHCA) with Australia — currently the UK, Ireland, New Zealand, Netherlands, Belgium, Sweden, Norway, Finland, Slovenia, Italy, and Malta. If you're from one of these countries, you can enrol in Medicare and the 2% levy applies to your income.
How to claim your Medicare Levy exemption:
- Apply for a Medicare Levy Exemption Certificate through the ATO's online services (via myGov)
- This is not automatic — you must apply each year when lodging your tax return
- On a $40,000 income, this exemption saves you $800 per year
- If your employer withheld Medicare Levy from your pay, you'll get it refunded when you lodge your return
Superannuation: You'll Get Contributions — But Tax Applies When You Claim
Even as a Working Holiday Maker, your employer is legally required to pay Superannuation Guarantee (SGC) of 12% of your ordinary time earnings into a super fund on your behalf. This is on top of your wages — it doesn't come out of your take-home pay.
When you leave Australia permanently after your visa expires, you can claim your accumulated super balance back through the Departing Australia Superannuation Payment (DASP) scheme.
Important: DASP tax for Working Holiday Makers is 65%
- WHMs who claimed the 15% WHM tax rate face a 65% DASP withholding tax on the taxable portion of their super
- This is significantly higher than the 35% that applies to other temporary visa holders
- Despite this, it's still worth claiming — even after 65% tax, you receive 35% of your accumulated super
- You can apply for DASP online through the ATO after departing Australia
- You must have left Australia and cancelled your visa to be eligible
Example: You worked in Australia for 12 months earning $45,000. Your employer contributed $5,400 in super (12%). After 65% DASP tax, you'd receive approximately $1,890 back. Not huge, but worth claiming.
Use our superannuation calculator to see how much your employer is contributing during your stay.
Tax Tips for Working Holiday Visa Holders
- Get a Tax File Number (TFN) as soon as you arrive. Without a TFN, your employer must withhold tax at the highest rate (47%). Apply online at the ATO website — it's free and usually processed within 28 days.
- Always lodge a tax return. Even if you only worked for a short time in Australia, lodge a tax return for the financial year (1 July – 30 June). If your employer withheld too much tax during the year, you'll receive a refund. Tax returns are due by 31 October each year, or later if you use a registered tax agent.
- Tell your employer you're on a Working Holiday visa. Your employer needs to register as a "Working Holiday Maker employer" to withhold tax at the correct 15% rate. If they don't, they'll withhold at the wrong (higher) rate. Make sure you tell them your visa type at the start.
- Keep records of all income and deductions. Even as a WHM, you can claim legitimate work-related deductions — tools, uniforms, and sometimes travel between multiple worksites. Good records mean a bigger refund.
- Apply for your Medicare Levy Exemption. Don't leave money on the table — if you're not from an RHCA country, claim your exemption through myGov or a tax agent when you lodge your return.
- Claim your DASP when you leave. Apply for your Departing Australia Superannuation Payment after you leave the country and cancel your visa. Even with 65% withholding, it's free money you're entitled to.
WHM Tax vs. Regular Resident Tax: Side-by-Side Comparison
| Feature | Working Holiday Maker | Australian Resident |
|---|---|---|
| Tax-Free Threshold | None | $18,200 |
| Tax Rate (first $45K) | Flat 15% | 0% / 16% progressive |
| Tax Rate ($45K–$135K) | 30% | 30% |
| LITO (up to $700) | Not eligible | Eligible (if income < $66,667) |
| Medicare Levy | Usually exempt | 2% of income |
| Super (SGC) | 12% — entitled | 12% — entitled |
| Claim Super Back | Yes, via DASP (65% tax) | At retirement age |
| Tax on $30,000 | $4,500 | $1,888 |
| Tax on $45,000 | $6,750 | $5,488 |
The WHM rate is notably higher on lower incomes because residents benefit from the $18,200 tax-free threshold and LITO. At $45,000, the gap narrows significantly. Use our take-home pay calculator to compare both scenarios.
Summary: Working Holiday Visa Tax at a Glance
- Visa types: Applies to Subclass 417 (Working Holiday) and Subclass 462 (Work and Holiday)
- Flat 15% rate: On all income up to $45,000 — no tax-free threshold, no LITO
- Above $45,000: Standard resident rates apply (30%, 37%, 45%)
- Medicare Levy: Exempt for most WHMs — but apply for the exemption certificate at tax time
- Super: 12% SGC from your employer — you can claim it back as DASP when you leave (65% withholding tax)
- TFN: Apply immediately on arrival to avoid 47% withholding
- Lodge your return: Always lodge a tax return — you may get a refund
Ready to calculate your exact take-home pay? Use our take-home pay calculator — or check the income tax calculator to explore different salary levels. For Medicare Levy questions, visit our Medicare Levy calculator.