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Tax rates if you're under 18 years old

Tax payable on income you receive, if you're under 18 years old and not an excepted person with excepted income.

Last updated 17 June 2025

How tax applies if you're under 18 years old

Special rules apply and you pay tax on certain income types at a higher rate on income you receive if you're under 18 years old. This rule was introduced to discourage adults from diverting income to their children.

If you aren't an excepted person or receiving excepted income, you pay tax on that income as below depending on your residency.

You pay the same individual income tax rates as an adult if you're an excepted person or on excepted income.

If you are a resident

Table 1: Tax rates for residents who are under 18 for 2024–25

Income for the year

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil plus 66% of the excess over $416 (see Note)

Over $1,307

45% of the total amount of the income that is not excepted income
Table 2: Tax rates for residents who are under 18 for 2020–21 to 2023–24

Income for the year

Tax rates

$0 – $416

Nil

$417 – $1,307

Nil plus 66%of the excess over $416 (see Note)

Over $1,307

45% of the total amount of the income that is not excepted income

Note: This rate, or if it is greater, the rate payable on eligible taxable income if it were the top slice of total taxable income and the general rates applied.

If you are a non-resident

Table 3: Tax rates for non-residents who are under 18 for 2024–25

Income for the year

Tax rates

$0 – $416

30% of the entire amount

$417 – $713

$124.80 plus 66% of the excess over $416 (see Note 1)

Over $713

45% of the entire amount
Table 4: Tax rates for non-residents who are under 18 for 2020–21 to 2023–24

Income for the year

Tax rates

$0 – $416

32.5% of the entire amount

$417 – $663

$135.20 plus 66% of the excess over $416(see Note 1)

Over $663

45% of the entire amount

Note 1: This rate, or if it is greater, the rate payable on eligible taxable income if it were the top slice of total taxable income and the general rates applied.

How income is taxed if you are under 18

Table 5: How income of a person under 18 years old is taxed

If you...

Then...

Are an excepted person

your net income is taxed at the same individual income tax rates as an adult

Only have excepted income, such as part-time employment income

your excepted net income is taxed at the same individual income tax rates as an adult

Have some excepted income (such as part-time employment income) and some other income (such as a family trust distribution)
  • your excepted net income is taxed at the same individual income tax rates as an adult
  • your other income (after taking away deductions claimed for that income) will be taxed at higher rates

 

Only have other income (such as a family trust distribution)

your other income (after taking away deductions claimed for that income) will be taxed at higher rates 

To check the individual tax rates of an adult, see:

QC72762