Is a bonus taxed more?
No — a bonus isn't taxed at a special rate. It's added to your income for the year and taxed at the same marginal rates as your salary. The reason bonuses feel heavily taxed is that the whole amount sits on top of your salary, so all of it is taxed at your highest rate, and employers often withhold a large amount from the bonus payment itself.
How to use the calculator
- Enter your salary for the year, not including the bonus.
- Enter the bonus amount.
- Choose the income year and tick the study loan box if you have one.
- Read the bonus after tax and the breakdown of extra income tax, Medicare levy and study loan repayment.
How it's calculated
The calculator works out your tax for the year twice: once on your salary alone and once on salary plus bonus. The difference is the tax the bonus adds. This captures marginal rates, the Medicare levy, LITO phasing out and, if you tick it, the step up in your study loan repayment.
Worked example
On a $90,000 salary in 2026–27, a $10,000 bonus adds $3,200 to your tax and Medicare levy, so you keep $6,800. The bonus is taxed at 30% plus the 2% Medicare levy because your income stays inside the $45,001–$135,000 bracket.
Withholding versus actual tax
Employers withhold tax from a bonus using the ATO's method for back payments, commissions and bonuses, which spreads the bonus across the year's pay periods to estimate the extra tax. The amount withheld can be more or less than the tax the bonus actually adds. Any difference is settled when you lodge your tax return, which is why this calculator focuses on the true annual cost.
Bonuses and super
Whether a bonus attracts the 12% super guarantee depends on what it's for. Bonuses tied to ordinary hours of work or performance are generally part of ordinary time earnings and attract super; a one-off bonus unrelated to hours, such as a Christmas gift, may not. Check your contract and the ATO's guidance on ordinary time earnings.
Salary sacrificing a bonus
Some employers let you sacrifice part of a bonus into super before it's paid. Sacrificed amounts are taxed at 15% in the fund instead of your marginal rate, but count toward your concessional contributions cap and your repayment income for study loans. The arrangement has to be made before you become entitled to the bonus.
Bonuses and the tax brackets
If a bonus pushes your income into a higher bracket, only the part above the threshold is taxed at the higher rate. Earning more never reduces your after-tax income from salary alone.
Bonuses for employees with a study loan can also lift the repayment, so tick the box to include it.
Bonus timing
Because tax is assessed per income year, the timing of a bonus can matter. A bonus paid on 30 June counts towards that year's income; one paid on 1 July counts towards the next. If your income will be lower next year — for example because of parental leave or study — a later payment can mean less tax overall. Employers usually set payment dates, but it's worth knowing the effect.
Example: a bonus that crosses a threshold
On a $130,000 salary, a $15,000 bonus takes income to $145,000. The first $5,000 of the bonus is taxed at 30% and the remaining $10,000 at 37%, each plus the 2% Medicare levy. Enter those figures to see the effect; with a study loan ticked, the higher repayment band adds to the cost.
Frequently asked questions
How much tax do I pay on a bonus in Australia?
Your bonus is taxed at your marginal rate plus the 2% Medicare levy. On a $90,000 salary, a $10,000 bonus adds $3,200 in 2026–27.
Why was so much tax taken from my bonus?
Withholding on bonuses uses an ATO method that estimates the extra tax across the year. Any over-withholding is refunded at tax time.
Can a bonus push me into a higher tax bracket?
Yes, but only the part of income above the threshold is taxed at the higher rate.
Is super paid on bonuses?
It depends on the bonus. Performance bonuses linked to ordinary hours are generally included; some one-off bonuses are not.
Can I salary sacrifice my bonus?
Possibly, if your employer allows it and you arrange it before you become entitled to the bonus.
