Results are estimates for educational purposes only. Income tax is set federally in Australia and does not vary by state. Always consult a registered tax agent.
Does Australian Capital Territory have its own income tax?
No. Unlike the US, Canada, or even the UK's devolved system, Australian income tax is set entirely at the federal level — there is no separate Australian Capital Territory state income tax. Every Australian resident pays the exact same income tax brackets and Medicare Levy regardless of which state or territory they live in. What differs by state is payroll tax (which employers pay, not employees directly), stamp duty, and land tax — none of which affect your personal income tax return.
The Australian Capital Territory is home to Canberra, the nation's capital and seat of the federal government. With a workforce heavily weighted toward public service, education, and government-adjacent professional services, the ACT has consistently recorded some of the highest average incomes and lowest unemployment rates in the country. Income tax remains entirely federal, identical nationwide. Canberra's planned-city layout, strong public sector employment base, and significant number of embassies and international organisations give the territory a distinct character compared to the state capitals, with housing costs that sit toward the higher end nationally despite the territory's smaller population.
2025-26 national income tax brackets (apply in Australian Capital Territory too)
Taxable income
Tax rate
$0 – $18,200
Nil
$18,201 – $45,000
16c for each $1 over $18,200
$45,001 – $135,000
$4,288 + 30c for each $1 over $45,000
$135,001 – $190,000
$31,288 + 37c for each $1 over $135,000
Over $190,000
$51,638 + 45c for each $1 over $190,000
Worked example: $80,000 salary in Australian Capital Territory
Tax on $80,000: $4,288 + 30% × ($80,000 − $45,000) = $14,788. Medicare Levy: $80,000 × 2% = $1,600. Take-home: approximately $63,612 per year — identical to the same salary anywhere else in Australia, since income tax doesn't vary by state.
Key facts: Income tax is federal — identical to every other state or territory · High average incomes driven by public service employment · Smallest jurisdiction by land area (mainland)
Frequently asked questions — Australian Capital Territory
No. Income tax is entirely federal, so ACT residents pay the same national tax brackets and Medicare Levy as everyone else in Australia.
The ACT's economy is heavily weighted toward federal public service employment, along with government-adjacent professional services, consulting, and technology roles, which tend to command higher average salaries than the national average.
Housing costs in Canberra sit toward the higher end nationally, reflecting strong demand from a stable, well-paid public service workforce, though it remains generally less expensive than Sydney.
The ACT is a federal territory rather than a state, meaning it has a different constitutional relationship with the Commonwealth government, though for personal income tax purposes residents are treated identically to state residents.
Federal public servants may have access to specific superannuation schemes (such as the PSS or CSS for older employees), but the underlying tax treatment of superannuation contributions and concessional caps follows the same national rules as everywhere else.