Victoria is widely cited as Australia's highest-taxed state, particularly concerning property taxes and overall state taxes relative to its economy (Gross State Product), with data from sources like the Parliamentary Budget Office and various analyses consistently showing higher tax burdens per person and as a percentage of economic output compared to other states like NSW and Queensland, driven by numerous state-specific levies.
Highest taxed states
💰 State-wise GST Revenue Report for September 2025 | Maharashtra Tops the Chart Again! 🚀 | Economic Growth Indicators India's GST collection data for September 2025 is out — and here's the complete state-wise breakdown! 🧾 Maharashtra leads once again with a whopping ₹27,762 Crore, followed by Karnataka and Tamil Nadu.
ATO confirms resources sector pays half of large corporation tax. The resources sector has once again emerged as Australia's biggest taxpayer, with the ATO Corporate Tax Transparency Report revealing major mining and energy firms contributed $48 billion in company tax in 2023-24.
This means, before any deductions or offsets, you'll pay $20,787.84 in income tax on $100,000.
To be in Australia's top 1% of individual taxpayers, you generally need an annual income of around $375,000 to $390,000, though figures vary slightly by source and year, with higher thresholds for households (around $530,000). For context, the median individual income is much lower (around $55,000), and while top earners often include surgeons and anaesthetists, reaching the top 1% of net worth requires significantly more wealth, often exceeding $7 million.
How to avoid paying higher-rate tax
Around 80,000 Australians had over $2 million in superannuation as of 2019-2020 data, with estimates suggesting this number might be higher now due to asset growth, potentially affecting around 80,000 people with balances over $3 million by 2025. While most with high balances are older, some young individuals (under 30) also hold over $2 million in super.
Australia's 2022 tax-to-GDP ratio ranked it 29th¹ out of 38 OECD countries in terms of the tax- to-GDP ratio compared with the 2023 figures. In 2022 Australia had a tax-to-GDP ratio of 29.4%, compared with the OECD average of 33.9% in 2023 and 34.0% in 2022.
There aren't many of them, just 110,613 — 82,258 men and 28,355 women. Only 39,209 have taxable incomes of more than $500,000, and of these only 14,467 have taxable incomes of more than $1 million.
States with the lowest personal income tax rates
The country that has the highest taxes is the Ivory Coast (60%), according to statistics platform Data Panda's 2025 survey. Other countries with high taxes are Finland (56%), Japan (55%), Austria (55%), Denmark (55%), Sweden (52%), Aruba (52%), Belgium (50%), Israel (50%), and Slovenia (50%).
In India, the 42% income tax rate applies to high-income earners and top corporate taxpayers who fall under the highest tax bracket after adding surcharge and cess.
Hawaii property owners enjoy the lowest property tax rates in the United States, largely due to the state's thriving tourism industry that generates significant tax revenue. Additionally, high property values in the Aloha State allow it to collect adequate property tax revenue while keeping its rates extremely low.
The State-Wise Reality. Assuming only 5% people pay tax - the gap is wild. Delhi tops the list at ₹1.8 lakh per person, while UP is last at just ₹4,000.
Heavy Reliance on Personal Income Tax
Australia funds a larger share of public spending through personal income tax than most countries. OECD data shows Australia collects about 40% of its tax revenue from individuals, compared to an OECD average closer to 25%.
Yes, $70k is a fair salary in Australia, often near the median income, making it a decent living for a single person, especially outside major cities, but it can be tight in expensive areas or for those with high living costs like mortgages, with full-time averages now closer to $90k-$100k.
So, on average Australians pay about $3,000 more than Americans a year. Both countries veer close to the OECD average, which was $12,911 USD. Residence of high-tax, high-benefits countries like Norway, in contrast, pay rates of over $30,000 USD.
Yes, $600,000 can be enough to retire at 60 in Australia for many, especially if you're a single person aiming for a comfortable lifestyle, but it depends heavily on your spending, assets, and eligibility for the Age Pension. While some sources suggest $600k covers a single's comfortable retirement (around $52k-$53k/year), it's near the lower end, and couples might need closer to $700k for a similar standard, making financial planning crucial for a stress-free retirement.
The short answer: to retire on $80,000 a year in Australia, you'll need a super balance of roughly between $700,000 and $1.4 million. It's a broad range, and that's because everyone's circumstances are different.
$500,000 in Australian retirement can last anywhere from 10-15 years for high spending ($40k-$50k/yr) to 20+ years if supplemented by the Age Pension and lower spending ($30k/yr), depending heavily on your age, lifestyle, investment returns (3-7% p.a. for 10-20 years), and if you qualify for the Age Pension. Expect 10-13 years at $50k/year or 17-20 years at $30k/year if you're 60, but combining it with the Age Pension at 65+ significantly extends its life, potentially covering expenses until 90-95.
Pensions - Articles - Eight tips to beat the taxman this April
When you earn over £150,000 in a tax year, you need to file a high earner tax return with HMRC unless all of your income is taxed through PAYE. If you aren't already registered for Self Assessment tax returns, you need to register by the 5th October following the tax year you had the income.
To help save for your retirement, the government doesn't make you pay income tax on all or a lot of the earnings you put into your pension pot. Instead of paying tax, the government gives you tax relief by topping up your pension contribution or letting you pay in before income tax is taken.