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Find out exactly how much of your bonus or overtime you take home. Bonuses are taxed at your marginal rate — not a special higher rate. 2026–27 ATO rates.
Your salary before the bonus, excluding super
Gross amount before tax
From your $10,000 bonus
Bonus take-home
$6,800
After $3,200 in tax (32.0%)
Marginal rate
30.0%
+Medicare levy
$200
Does not include compulsory HECS/HELP repayments — a bonus can itself push your repayment income into a higher band. For that, use the salary tax calculator, which models HELP repayments.
Bracket breakdown
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.
Bonuses and overtime payments are taxed as ordinary income — they are added to your annual salary and taxed at your marginal rate. There is no special 'bonus tax rate' in Australia.
What confuses many people is that employers often over-withhold tax from bonuses at the time of payment. This is because the ATO's PAYG withholding schedules may require employers to annualise the bonus and withhold based on a higher assumed income. However, when you lodge your tax return, any over-withheld tax is refunded.
The key number to know is your marginal rate — the rate that applies to your last dollar of income. If a bonus pushes you into a higher bracket, only the portion above that bracket threshold is taxed at the higher rate.
Bonuses are taxed at your marginal income tax rate — not a special bonus rate. For 2026–27, the marginal rates are: 0% ($0–$18,200), 15% ($18,201–$45,000), 30% ($45,001–$135,000), 37% ($135,001–$190,000), 45% (over $190,000). Add the 2% Medicare levy on top, unless your income is low enough for the Medicare levy reduction.
Your employer must withhold PAYG tax from your bonus using ATO schedules, which may over-withhold by treating the bonus as if it were a regular salary payment. The extra withheld comes back to you when you lodge your tax return. Your actual tax rate on the bonus is your marginal rate — typically 30% to 37% for most earners.
Taxable income for the year is what sets the brackets. Allowable deductions, concessional super contributions (taxed in the fund at 15%) and which financial year the bonus is paid in all change that total. This calculator shows the tax on the bonus at the salary and bonus you enter, without modelling those other adjustments.
No — overtime and bonuses are both taxed as ordinary income at your marginal rate. There is no separate tax rate for overtime pay in Australia.
It might — but only the amount above the bracket threshold is taxed at the higher rate. For example, if you earn $130,000 and receive a $10,000 bonus, the first $5,000 of the bonus falls in the 30% bracket and the remaining $5,000 falls in the 37% bracket. This calculator shows the exact bracket split.
Rates checked against the ATO, verified 11 September 2026
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
Rates and thresholds last updated for the 2026–27 financial year.
This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.
What can move this result
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.