US Citizens Working in Australia
See what you actually take home after US and Australia taxes: whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Australia:
- •Medicare levy adds 2% for most residents (higher for high earners)
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
Who taxes you?
As a US citizen working in Australia, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to $132,900 of foreign earned income in 2026 if you meet the 330-day physical presence test. Australia taxes its tax residents on income earned in Australia and overseas, with progressive rates up to 45%. If you are in Australia on a temporary visa and neither you nor your spouse is an Australian citizen or permanent resident, you are also a temporary resident for tax. Then you declare only income you earn in Australia and, in some cases, pay for work done overseas while a temporary resident. Other foreign income, such as US interest and dividends, does not have to be declared. A Medicare levy of 2% (or higher for high earners) applies to most residents. The US-Australia tax treaty provides foreign tax credits to prevent double taxation.
Common pitfalls
- Australian tax rates are high, with top marginal rate of 45%
- Medicare levy adds 2% (or more for high earners) on top of income tax
- Currency fluctuations between USD and AUD can impact your effective income
Is there a US-Australia tax treaty?
Yes. The US-Australia income tax treaty is in force, and foreign tax credits cover what it does not.
Getting paid in Australian Dollar
Salaries in Sydney are paid in Australian Dollar (AUD). A 100,000 US-dollar salary is roughly 152,000 AUD at current rates. That matters twice over: your US return is always filed in dollars, so the rate on each payday feeds straight into what you report, and a currency that moves against the dollar changes what the same nominal salary is worth to you without your pay changing at all.
Frequently asked questions
Not on the same income: a treaty is in force. You pay the higher of the two rates, not both.
The Australian Dollar (AUD). A 100,000 US-dollar salary is about 152,000 AUD at current rates. Your US tax is always calculated in dollars, so the exchange rate on the day you are paid feeds directly into what you report, and into how far the same nominal salary goes in Sydney.
Australia has a progressive income tax system with rates from 0% to 45%. A Medicare levy of 2% applies to most residents (higher for high earners). You can claim foreign tax credits on your US return to offset taxes paid to Australia.
The Medicare levy is a tax that helps fund Australia's public healthcare system. It's typically 2% of taxable income, but can be higher for high earners who don't have private health insurance.
Official resources
Primary sources:
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
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