Bonus Tax Calculator Australia
See how much tax comes out of a work bonus at your marginal rate. The calculator compares the standalone withholding method with the ATO’s aggregate Schedule 5 approach, then shows the bonus after tax using 2026–27 resident rates and the Medicare levy.
- ATO-based tax rates
- Instant results
- No sign-up
- Private by design
Your salary and bonus
Gross amounts before tax and super.
All calculations run locally in your browser.
Tax on your bonus
At your 32.0% marginal rate on a $10,000 bonus
- Bonus after tax
- $6,800
- Marginal rate
- 32.0%
- Standalone withholding
- $3,200
- Aggregate withholding
- $3,224
Annual tax breakdown
- Tax on salary alone
- $19,320
- Tax on salary + bonus
- $22,520
- Extra tax on the bonus
- +$3,200
- Bonus after tax
- $6,800
- Effective tax on bonus
- 32.0%
Standalone vs aggregate
Weekly- Standalone
- Withhold the bonus at your marginal rate as a separate payment. Simple, but can drift from your actual yearly tax if the bonus changes your bracket.
- $3,200 withheld
- Aggregate (Schedule 5)
- Spread the bonus across the year, add one slice to each pay, then multiply the extra withholding back. Usually closer to the real tax.
- $3,224 withheld
Both are withholding methods. Neither changes the final tax on the bonus when you lodge your return.
Estimate only. Actual withholding depends on your payroll system, pay frequency, HELP debt, deductions and the timing of the bonus.
A bonus is taxed at your marginal rate
There is no separate bonus tax rate in Australia. A bonus is ordinary assessable income. It is added to your salary and taxed through the same progressive brackets, which means each bonus dollar is taxed at your marginal rate: the rate that applies to your next dollar of income. For 2026–27 the resident rates are 0% to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that, plus the 2% Medicare levy.
Tax on a bonus = tax on (salary + bonus) − tax on salary. This is the extra annual tax caused by the bonus, not a special bonus rate.
If your salary is $90,000, your marginal rate is 30% plus 2% Medicare, so a $10,000 bonus adds about $3,200 of tax. If your salary is $130,000, the bonus starts in the 37% bracket and the extra tax is higher. If the bonus is large enough to cross a threshold, only the part above the threshold is taxed at the higher rate; the rest stays in the lower bracket.
Standalone vs aggregate withholding
The tax on your bonus is fixed by your total income, but the amount withheld when the bonus is paid depends on the method your employer uses. The two common approaches are:
- Standalone method. The employer treats the bonus as a separate payment and withholds at your marginal rate, including the Medicare levy. It is simple and usually close to the real tax, but it can be slightly high or low if the bonus changes your bracket or affects a HELP repayment.
- Aggregate method (Schedule 5). The employer spreads the bonus across the pay periods in the year, adds one slice to your regular pay, works out the extra withholding and multiplies it back. It keeps withholding aligned with your yearly income and avoids the over-withholding that happens if the whole bonus is added to a single pay.
Both methods are acceptable to the ATO, and both are only withholding. Your final tax is worked out on your tax return using your actual taxable income. If too much was withheld, you receive a refund; if too little, you pay the difference. The method affects your cash flow during the year, not the total tax you owe.
Adding the entire bonus to one pay without apportioning it would treat the bonus as if you earned it every pay period. That can withhold far more than your marginal rate, which is why Schedule 5 exists. If your payroll system does this, expect a larger refund after you lodge.
Why a bonus can feel heavily taxed
Your normal salary fills the tax-free threshold and the lower brackets first. The bonus sits on top, so it is taxed at the highest rate you pay. If your salary is $90,000, your average tax rate is around 21%, but your marginal rate is 32% including Medicare. A $10,000 bonus therefore loses about 32%, not 21%, and the difference is noticeable.
A HELP debt can make the deduction larger. The compulsory repayment is based on your total repayment income, and a bonus can push you into a higher repayment band. The extra repayment is not a separate tax on the bonus; it is part of your overall study loan obligation and is reconciled in your return.
Bonus, super and total package
Most performance and incentive bonuses are ordinary time earnings, so the 12% super guarantee applies on top of the gross bonus, subject to the maximum contribution base. A $10,000 bonus therefore adds about $1,200 to your super (or less if you are above the cap). Super is paid into your fund and is not part of your take-home pay, and it does not reduce the income tax on the bonus.
If you are comparing offers, ask whether the bonus is included in the quoted package or paid on top. A “$100,000 package including super and bonus” is very different from a $100,000 base salary plus super plus a bonus. Use the salary calculator to separate base salary from super, and the reverse salary calculator to see what gross figure supports a target take-home amount.
Bonus tax examples for 2026–27
Resident taxpayer, tax-free threshold claimed, 2% Medicare levy, no HELP, no deductions and no other income. The effective rate is the extra tax divided by the bonus, which can differ slightly from the marginal rate because of bracket thresholds and the low income tax offset.
| Salary | Bonus | Tax on bonus | Effective rate | Bonus after tax |
|---|---|---|---|---|
| $70,000 | $5,000 | $1,600 | 32.0% | $3,400 |
| $90,000 | $10,000 | $3,200 | 32.0% | $6,800 |
| $120,000 | $15,000 | $4,800 | 32.0% | $10,200 |
| $160,000 | $20,000 | $7,800 | 39.0% | $12,200 |
These figures are the annual tax effect, not the amount withheld from the bonus payment. Withholding can differ because of the standalone or aggregate method, your pay cycle and your HELP position.
What to check on your bonus payslip
The bonus line should show the gross bonus, the PAYG withheld and any study loan component separately. Compare the withholding with the standalone and aggregate figures above. If the withheld amount is much higher than both, the payroll system may have added the whole bonus to one pay period. If it is much lower, check whether the bonus was treated as ordinary earnings, whether the tax-free threshold was applied twice, or whether a HELP component was missed.
To see how the bonus affects your yearly position, use the tax return calculator. To check the withholding on a normal weekly or fortnightly pay, use the tax withheld calculator. If you have a second job as well, thesecond job tax calculator combines both incomes.
Questions
Bonus Tax Calculator Australia FAQs
Quick answers about how this calculator works and what it includes.
How is a bonus taxed in Australia?
A bonus is ordinary assessable income, not a special category. It is added to your salary and taxed at your marginal rate, which is the rate on your next dollar of income. For 2026–27 that is 15%, 30%, 37% or 45% depending on your income, plus the 2% Medicare levy. If the bonus pushes you into a higher bracket, only the part inside that bracket is taxed at the higher rate.
What is the difference between the standalone and aggregate methods?
The standalone method withholds tax from the bonus at your marginal rate as a separate amount. The aggregate method (ATO Schedule 5) spreads the bonus across the pay periods in the year, adds one slice to each pay, works out the extra withholding and multiplies it back. Both are withholding methods and usually produce a similar amount. The aggregate method keeps withholding closer to your actual yearly tax, particularly when the bonus is large.
Why does my bonus look taxed at a higher rate than my salary?
Your salary already uses the tax-free threshold and the lower brackets. The bonus sits on top, so every dollar of it is taxed at your top marginal rate rather than your average rate. That makes the withholding look high compared with your normal payslip, even though it is the same progressive tax system. The extra tax is reconciled in your return.
Will I get the extra bonus tax back?
If your employer withheld more than your actual liability, the excess is refunded when you lodge your return. If the bonus pushed you into a higher bracket, or if you have a HELP debt or other income, you may instead owe a small amount. The final tax is always based on your total taxable income for the year, not on the withholding method used.
Does super apply to a bonus?
Usually yes. Performance bonuses and incentive payments are generally ordinary time earnings, so the 12% super guarantee is paid on top, subject to the maximum contribution base. Bonuses tied specifically to overtime may be excluded. Super does not reduce the income tax on the bonus and is not part of your take-home pay.
Can a bonus push me into a higher tax bracket?
Yes, but only the portion above the threshold is taxed at the higher rate. If a bonus takes you from $130,000 to $140,000, the first $5,000 remains in the 30% bracket and only the next $5,000 is taxed at 37% (plus Medicare). Your whole salary is not re-taxed at the higher rate.
Free tools