Working Holiday Maker Tax Australia 2026/27
Working holiday makers (visa subclass 417 and 462) pay a flat 15% tax on every dollar earned in Australia up to $45,000 in 2026/27. Above that, ordinary resident rates apply.
Who is a working holiday maker?
The working holiday maker (WHM) tax regime applies to people in Australia on:
- Subclass 417 (Working Holiday visa), or
- Subclass 462 (Work and Holiday visa).
Employers must check the visa subclass before applying the WHM rate. An employer who withholds at the wrong rate (for example, the resident rate) can face penalties.
The 15% flat rate on the first $45,000
Under Schedule 15 of the ATO's withholding tables, WHM workers pay a flat 15% on all earnings from the first dollar up to $45,000. There is no tax-free threshold. This is simpler than the resident rate schedule but means that low earners pay more tax than an equivalent resident would.
| Annual income | WHM tax | Resident tax (approximate) |
|---|---|---|
| $20,000 | $3,000 (15%) | $288 (16% on $1,800 above $18,200) |
| $35,000 | $5,250 (15%) | $2,688 (approx) |
| $45,000 | $6,750 (15%) | $4,288 (approx) |
Income above $45,000 is taxed at ordinary rates. For most WHM workers who remain non-residents for tax purposes, the foreign resident rates apply above that threshold (32.5% to $135,000, then 37%, then 45%).
Medicare levy
Working holiday makers are exempt from the 2% Medicare levy. This is different from the treatment of residents and most temporary visa holders, who generally pay the levy. The exemption applies for the duration of the WHM visa.
Superannuation
Despite the special tax treatment, working holiday makers are entitled to superannuation. Employers must pay 12% of ordinary time earnings as super in 2026/27 (the Super Guarantee rate). Super contributions are paid into a complying super fund in your name.
When you leave Australia permanently or when your visa expires, you can claim the balance as a Departing Australia Superannuation Payment (DASP). However, DASP for working holiday makers is taxed at 65% on the taxable component. The after-tax DASP amount is still often worth claiming.
Tax file number
Apply for a Tax File Number (TFN) as soon as you start working. If you do not give your TFN to your employer, they are required to withhold tax at the highest marginal rate of 47% on your earnings. There is no advantage to withholding your TFN.
Calculate your take-home pay under the WHM rate with our Australia Pay Calculator: select "Working Holiday" as your residency type.
Frequently asked questions
What is the working holiday maker tax rate in Australia 2026/27?
Working holiday makers pay a flat 15% tax on Australian income up to $45,000. Income above $45,000 is taxed at ordinary non-resident or resident rates depending on visa and residency status.
Do working holiday makers pay the Medicare levy?
No. Working holiday makers are exempt from the 2% Medicare levy.
Can working holiday makers claim their superannuation back?
Yes. When you leave Australia permanently, you can claim your superannuation as a Departing Australia Superannuation Payment (DASP). However, DASP is taxed at 65% for working holiday makers.
Sources: ATO Tax Withheld Calculator, Schedule 15 (Working Holiday Makers) 2026/27. Last updated 2026-11-04.