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Pay & tax calculator

Bonus Tax Calculator (Australia)

Enter your salary and bonus to see how much tax you'll actually pay and what lands in your pocket. It stacks the bonus on your income at 2026–27 ATO marginal rates, so you get the real number, not the inflated amount your payslip may withhold. Free, no signup.

Free, no signup2026-27 ATO ratesReal tax, not just withholding
Your bonus
Your gross salary before this bonus, excluding super
$
The gross bonus or commission, before tax
$
A bonus lifts your income, so it can raise your HECS/HELP repayment too.
Bonus after tax
$3,400
Of a $5,000 bonus · $1,600 tax · 32% effective rate
Bonus (gross)$5,000
Income tax on bonusat your marginal rate−$1,500
Medicare levy on bonus2%−$100
Bonus in your pocket$3,400
Where your bonus goes
Keep 68%Tax 30%Medicare
Why your payslip may show a bigger tax hit
Employers often withhold on a bonus using the ATO’s Method B (Schedule 5), which can hold back more than the tax actually owed. The figure above is the true tax on the bonus. Any over-withholding comes back at tax time. See the tax refund calculator.
Estimate based on 2026–27 ATO resident rates. A guide, not tax advice, check ato.gov.au.
Simon Chadwick
Simon Chadwick
Founder, Orbit Money
Method: ATO 2026-27 marginal ratesUpdated: 16 July 2026Sources: ato.gov.au (tax rates), ATO Schedule 5

How tax on a bonus works in Australia

A bonus isn’t taxed at a separate “bonus rate”. The ATO treats it as ordinary income, so it’s taxed at your marginal rate, the rate on your next dollar of income. The tax on the bonus is the difference between your tax with the bonus and your tax without it, plus the 2% Medicare levy on the extra income. If your bonus is big enough to push part of your income into a higher bracket, only that part is taxed at the higher rate.

2026–27 income tax rates (residents)

Taxable incomeTax on this incomeRate
$0 – $18,200Nil0%
$18,201 – $45,00015c per $1 over $18,20015%
$45,001 – $135,000$4,020 + 30c per $1 over $45,00030%
$135,001 – $190,000$31,020 + 37c per $1 over $135,00037%
$190,001+$51,370 + 45c per $1 over $190,00045%

These are marginal rates plus the 2% Medicare levy. Your bonus is taxed at whichever band your income sits in. Figures are the 2026–27 resident rates; verify the current year at ato.gov.au. This tool is a guide, not tax advice.

Worked example: a $5,000 bonus on a $90,000 salary

On a $90,000 salary, a $5,000 bonus sits entirely inside the 30% bracket. Income tax on the bonus is $1,500 (30% of $5,000) and the Medicare levy is $100 (2%), a total of $1,600. You keep $3,400, an effective rate of 32%. If the same person earned $200,000, the bonus would be taxed at 45% plus 2%, so they’d keep $2,650. The rate you pay depends on the income the bonus lands on.

Why your payslip withholds more than this

When a bonus hits your pay, your employer often withholds tax using the ATO’s Method B (Schedule 5), which annualises the payment and can hold back more than you actually owe, sometimes close to the top marginal rate. That’s withholding, not your final tax bill. Your real tax is the marginal-stack figure this calculator shows. Any amount over-withheld comes back when you lodge your return, so a big deduction on the payslip often means a bigger refund later. You can estimate that with the tax refund calculator.

Bonuses, super and HECS/HELP

Most bonuses count as ordinary time earnings, so your employer pays 12% super on top of the bonus, separate from the tax you pay. If you have a HECS/HELP debt, a bonus lifts your income for the year, which can raise your compulsory repayment, so tick the HECS box above to include that effect. Salary sacrificing part of a bonus into super is one way to cut the tax on it: see the salary sacrifice calculator.

How to use this calculator

  1. Enter your annual salary, the gross figure before tax and excluding super.
  2. Enter your bonus or commission amount, before tax.
  3. Tick the HECS/HELP box if you have a study or training loan.
  4. Read the tax on the bonus, the Medicare levy, and what you keep, with the effective rate.

Frequently asked questions

How is a bonus taxed in Australia?
A bonus is not taxed at a special rate. It's added to your other income and taxed at your marginal rate. In practice, the tax on a bonus is the difference between your tax with the bonus and your tax without it, plus the 2% Medicare levy on the extra income. If the bonus pushes part of your income into a higher bracket, that part is taxed at the higher rate. This calculator works out that stacked figure for 2026-27.
How much tax will I pay on my bonus?
It depends on the salary the bonus sits on top of. Because it's taxed at your marginal rate, someone earning $60,000 pays 30% plus 2% Medicare on a bonus (32%), while someone earning $200,000 pays 45% plus 2% (47%). Enter your salary and bonus above to see the exact tax and what you keep.
How much tax would you pay on a $5,000 bonus?
On a $90,000 salary, a $5,000 bonus falls entirely in the 30% bracket, so income tax is $1,500 and the Medicare levy is $100, a total of $1,600. You keep $3,400, an effective rate of 32%. On a higher salary the rate rises. This is the tax actually owed; your payslip may withhold more and you get the difference back at tax time.
How much tax is taken out of a $10,000 bonus?
On a $90,000 salary, a $10,000 bonus is taxed at 30% plus the 2% Medicare levy, so $3,200 in tax and $6,800 kept. Part of a large bonus can spill into the next bracket: on a $130,000 salary, some of a $10,000 bonus is taxed at 37%. Note your employer may withhold more than this on the payslip under the ATO's Method B, with the excess refunded later.
How is tax calculated on your bonus?
The true tax on a bonus uses the marginal-stack method: work out your tax on salary plus bonus, subtract your tax on salary alone, and the gap is the tax on the bonus. Add the 2% Medicare levy on the bonus, and a HECS/HELP repayment if you have a study debt. This calculator does all three using the 2026-27 resident rates.
Why is so much tax taken out of my bonus on my payslip?
Employers often withhold on bonuses using the ATO's Method B (Schedule 5), which annualises the bonus and can hold back more than the tax you actually owe, sometimes near the top marginal rate. That's withholding, not your final tax. When you lodge your return, your real tax is the marginal-stack figure this tool shows, and any over-withholding is refunded.
Does a bonus get taxed at 40% or 47%?
There's no flat 40% or 47% bonus tax in Australia. The 47% figure people see is the top withholding cap on the payslip (45% top rate plus 2% Medicare), not the tax owed unless you're already a top-bracket earner. Your actual tax is your marginal rate on the bonus, which this calculator estimates for your income.
Do I pay super on a bonus?
Usually yes. Most bonuses count as ordinary time earnings, so your employer pays 12% super on top of the bonus into your super fund. That super is separate from the tax you pay and doesn't reduce the bonus you take home. Performance bonuses tied to ordinary hours are generally included; check with your employer for edge cases.

Related tools

Take-Home Pay Calculator (AU)
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Tax Refund Calculator (AU)
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Salary Sacrifice Calculator (AU)
Cut tax on a bonus by putting pre-tax income into super.
GST Calculator (AU)
Add or remove Australia's 10% GST from any price.
HECS Repayment Calculator
See how a bonus changes your HECS/HELP repayment.

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Simon Chadwick
About the author
Simon Chadwick
Founder of Orbit Money

Simon is the founder of Orbit Money, a tool that helps people track subscriptions and recurring spend. He builds Orbit's free money calculators and writes about personal finance for Australian and UK readers.

More from Simon →
This tool is a guide, not tax advice. It shows the tax actually owed on a bonus; the PAYG amount withheld on your payslip may differ and any difference is settled at tax time.