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Bonus Tax Calculator Australia

How much of your bonus do you keep after tax? Calculate for 2025–2026.

Key fact:There is no special “bonus tax rate” in Australia. Your bonus is taxed as ordinary income. Your payslip may show higher withholding, but any excess is refunded when you lodge your tax return. For the full explanation, read our bonus tax guide. Learn more below.

Bonus Tax Examples 2025–2026

How much you keep depends on your base salary and the bonus amount. All figures calculated using 2025-26 ATO rates.

Base SalaryBonusTax on BonusYou Keep
$95,000$5,000$1,600$3,400
$80,000$10,000$3,200$6,800
$130,000$20,000$7,700$12,300

How bonus tax works in Australia

When you receive a bonus, your employer adds it to your regular pay and calculates withholding using ATO Schedule 5. This schedule uses an annualisation method that temporarily treats the bonus as if you’d receive it every pay period, which often pushes withholding into a higher tax bracket than your actual average rate.

The actual tax you owe on the bonus is simply the difference between your total tax on (base salary + bonus) and your tax on (base salary alone). This calculator shows that real figure. If your employer withholds more than the actual tax (which is common), the excess is refunded when you lodge your tax return.

If you want the fuller explanation of Schedule 5 withholding, plus how HELP, MLS, and super can change the result, the bonus tax guide walks through it in more detail.

Maximum withholding is capped at 47% of the bonus amount (the top marginal rate of 45% plus 2% Medicare Levy), regardless of what the annualisation method produces.

Frequently Asked Questions

How is a bonus taxed in Australia?

There is no special "bonus tax rate" in Australia. Your bonus is added to your regular income and taxed using the standard 2025-26 ATO progressive tax brackets. The additional tax you owe is based on your marginal tax rate — the rate that applies to the top portion of your income. For example, on a $95,000 salary with a $5,000 bonus, the actual tax on the bonus is $1,600 (an effective rate of 32.0%), leaving you with $3,400.

Why does my bonus seem to be taxed at a higher rate?

Your payslip may show higher withholding than the actual tax owed. This is because employers use ATO Schedule 5 withholding methods that annualise the bonus — temporarily treating it as if you receive that amount every pay period — which pushes the withholding rate up to your marginal bracket (or even the 47% cap). This is a prepayment, not the final tax. When you lodge your tax return, the ATO calculates your actual liability on total income, credits the withholding already paid, and refunds any excess.

How much tax will I pay on a $10,000 bonus?

It depends on your base salary. On an $80,000 salary, a $10,000 bonus incurs approximately $3,200 in additional tax (income tax plus 2% Medicare Levy), giving you a net bonus of $6,800. On a $130,000 salary, the same $10,000 bonus crosses into the 37% bracket, so you'd pay more in tax. Use the calculator above with your actual salary for an exact figure.

Is HECS/HELP repayment affected by a bonus?

Yes. Your bonus increases your repayment income, which can push you into a higher HECS repayment band or trigger repayments if you were previously below the threshold. The additional HECS amount is based on the marginal rate system — you only pay more on the income within each band, not a flat rate on everything. Use the HECS toggle in the calculator above to see the exact impact.

Does my employer pay super on a bonus?

Generally yes. Under the Superannuation Guarantee, your employer must pay 12% super on ordinary time earnings, which typically includes bonuses. This means on a $10,000 bonus, you'd also receive approximately $1,200 in additional super contributions. However, some bonus types (e.g., genuine redundancy payments, overtime in some cases) may be treated differently. Check with your employer or the ATO for your specific situation.

What is the maximum withholding rate on a bonus?

Under ATO Schedule 5, the maximum withholding on a bonus payment is 47% of the bonus amount (the top marginal rate of 45% plus 2% Medicare Levy). Even if the Schedule 5 calculation produces a higher figure, your employer must cap withholding at 47%. Any difference between withholding and your actual tax liability is reconciled when you lodge your tax return.

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