Bonus Tax Calculator 2026–27
Find out how much tax comes out of your bonus, how much you keep, and what happens at tax time.
Withholding uses the ATO's Schedule 5 Method A, which spreads the bonus over the pay periods in a year. Your employer may use a different method.
Printed from ClearCalc (clearcalc.com.au/bonus-tax-calculator/). Estimates only, not financial advice.
Are bonuses taxed more?
No. A bonus is ordinary income, taxed at the same rates as your salary. It can feel like more is taken because the bonus is taxed at your marginal rate, the rate on your top dollars, rather than your average rate. On a $90,000 salary, each extra dollar is taxed at 30% plus 2% Medicare, so a $5,000 bonus costs about $1,600 in tax.
How employers withhold tax from a bonus
The ATO's Schedule 5 gives employers two ways to withhold tax from bonuses and back pay:
- Method A: divide the bonus by the number of pay periods in a year, add that to a normal pay, work out the extra tax, then multiply it back up. This is what the calculator uses.
- Method B: add the whole bonus to one pay and use the normal tax tables. This often withholds too much, but any extra comes back at tax time.
Either way, the final tax is settled in your tax return.
Ways to keep more of a bonus
- Salary sacrifice it into super, where it's taxed at 15% instead of your marginal rate, if you're under the $32,500 concessional cap. Use the salary sacrifice calculator.
- Ask for it after 30 June if you expect a lower income next year.
Frequently asked questions
How much tax will I pay on a $10,000 bonus?
On a $90,000 salary, about $3,200, because each extra dollar is taxed at 30% plus 2% Medicare. On a $150,000 salary it's about $3,900.
Why was half my bonus taken in tax?
Your employer may have added the whole bonus to one pay and used the normal tables, which treat it as if you earn that much every pay. You'll get the excess back when you lodge your tax return.
Can I put my bonus into super?
Yes, if you arrange salary sacrifice with your employer before the bonus is paid. It's taxed at 15% in your fund, but counts towards your $32,500 concessional cap.
Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.