Compare taxes and see how much you save moving from USA to Australia
The hidden trap: Australia has no state income tax—abolished since 1942. A $150,000 earner in California pays ~$51,000 combined (federal + 13.3% state), whereas Australia charges ~$43,000 (including 2% Medicare levy). Choose USA if: you're in a no-tax state like Texas or Florida, or earn under $60,000. Choose Australia if: you'd live in a high-tax US state, or value the 11.5% employer Super contribution.
Federal Rate
Plus state tax 0-13%
Top Rate
Progressive brackets
At $100,000 income:
That is $667/month back in your pocket!
| Income | US Tax | AU Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $4,200 (federal only) | $6,717 (incl. Medicare) | USA saves $2,517 | $25,170 |
| $75,000 | $8,700 (federal only) | $13,842 (incl. Medicare) | USA saves $5,142 | $51,420 |
| $100,000 | $14,000 (federal only) | $22,217 (incl. Medicare) | USA saves $8,217 (no-tax state) | $82,170 |
| $150,000 | $26,000 (federal only) | $38,842 (incl. Medicare) | USA saves $12,842 (no-tax state) | $128,420 |
| $100,000 (CA) | $23,300 (fed + CA 9.3%) | $22,217 (incl. Medicare) | Australia saves $1,083 | $10,830 |
| $150,000 (CA) | $40,000 (fed + CA 9.3%) | $38,842 (incl. Medicare) | Australia saves $1,158 | $11,580 |
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Send Money USA ↔ Australia →At $100,000: USA federal tax is roughly $14,000, plus state tax (0% in Texas, $9,300 in California). Australia charges about $22,000 including the 2% Medicare levy. So USA wins in no-tax states, but loses in high-tax states like California where total reaches $23,300.
Yes—US citizens must file Form 1040 reporting worldwide income regardless of where they live. The Foreign Tax Credit usually eliminates US liability since Australian rates are higher. The FEIE can exclude up to $130,000+ of earned income. You'll file both Australian and US returns annually.
Australia's 2% Medicare levy covers universal healthcare. In the USA, employer health insurance averages $6,000-$12,000/year employee cost. Add this to the tax comparison: a $100,000 Californian might pay $23,300 taxes + $8,000 healthcare = $31,300 total, vs Australia's $22,000 all-inclusive.
No—Australia abolished state income taxes in 1942 and never brought them back. This is the biggest advantage over the USA: Sydney and Melbourne have 0% state tax. Compare to California (13.3%), New York City (12.7%), or New Jersey (10.75%). For high earners, this alone can mean $15,000+ annual savings.
Super is mandatory employer retirement contributions—currently 11.5% of salary, rising to 12% by 2025. Unlike US 401(k) which is optional and averages 3-6% match, every Australian employee automatically builds significant retirement savings. On a $100,000 salary, that's $11,500/year your employer pays into your retirement.