Tax payable on income you receive, if you’re under 18 years old and not an excepted person with excepted income.
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 and receive excepted income.
IF YOU ARE A RESIDENT
Table: Tax rates for residents who are under 18 for 2023–24
| Income | Tax rates for 2022–23 income year |
| $0 – $416 | Nil |
| $417 – $1,307 | Nil plus 66% of the excess over $416 |
| Over $1,307 | 45% of the total amount of the income that is not excepted income |
Table: Tax rates for residents who are under 18 for 2022–23
| Income | Tax rates for 2022–23 income year |
| $0 – $416 | Nil |
| $417 – $1,307 | Nil plus 66% of the excess over $416 |
| Over $1,307 | 45% of the total amount of the income that is not excepted income |
IF YOU ARE A non-RESIDENT
Table: Tax rates for non-residents who are under 18 for 2023–24
| Income | Tax rates for 2022–23 income year |
| $0 – $416 | 32.5% of the entire amount |
| $417 – $663 | $135.20 plus 66% of the excess over $416 |
| Over $663 | 45% of the entire amount |
Table: Tax rates for non-residents who are under 18 for 2022–23
| Income | Tax rates for 2022–23 income year |
| $0 – $416 | 32.5% of the entire amount |
| $417 – $663 | $135.20 plus 66% of the excess over $416 |
| Over $663 | 45% of the entire amount |
How income is taxed if you are under 18
Table: How income of a person under 18 years old is taxed
| If you… | Then… |
| Are an excepted person | your excepted 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) |
|
| 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 |
This article is for general information only. It does not make recommendations nor does it provide advice to address your personal circumstances. To make an informed decision, always contact a registered tax professional.