Finance Calc App

Australia Bonus take-home calculator

See how much of a bonus you take home after income tax and the Medicare levy. A bonus is taxed at your marginal rate, so the proportion taken is higher than on your salary.

By Mitch Duncan Last reviewed Methodology

Your bonus

Tax year: 2025/26 · Source: ATO (ato.gov.au)

Bonus take-home
$6,800.00
Tax on the bonus
$3,200.00
Breakdown
Gross bonus
$10,000.00
Tax & contributions on bonus
−$3,200.00
You keep
$6,800.00
Effective tax rate on bonus
32.0%
Marginal rate (incl. on bonus)
30.0%
Why your payslip may differ

A bonus is taxed at your marginal rate plus the Medicare levy. The ATO has a specific method for withholding on lump-sum payments, which can differ from regular pay-period withholding, so your payslip may not match the final figure until you lodge your return.

A bonus is taxed at your marginal rate — the rate on your top slice of income — so a higher proportion is taken than on your average salary. This estimate uses current brackets and ignores benefits, salary-sacrifice, or pension routing of the bonus, which can reduce the tax.

Want the full picture? Overtime and Bonus Pay Explained →

How a bonus is taxed in Australia

A bonus is taxed at your marginal rate plus the 2% Medicare levy. The ATO publishes a specific method for withholding on lump-sum and bonus payments (Schedule 5), which averages the bonus over the year to find the right rate — so the tax withheld can differ from your regular pay-period withholding.

Bonus kept = net(salary + bonus) − net(salary)

Withholding vs your assessment

Whatever your employer withholds on the bonus is reconciled when you lodge your tax return. If too much was withheld you'll get it back; if too little, you'll have a bill. The take-home figure here reflects the true marginal tax on the bonus, not the PAYG amount on your payslip.

Salary sacrifice to super

Sacrificing a bonus into superannuation (within the concessional cap) means it's taxed at just 15% going in, rather than your marginal rate — usually a large saving for middle and higher earners, at the cost of locking the money away until preservation age.

What this calculator doesn't cover

Related calculators

Paycheck calculator

Gross to net take-home

Income tax

Annual tax — US, UK, CA, AU

Pay raise calculator

New salary & real increase

Related guides

How to Calculate Take-Home Pay

Step-by-step gross-to-net walkthrough for employees and freelancers.

8 min read

Self-Employment Tax Explained

How the 15.3% SE tax works, what deductions apply, and quarterly payment planning.

9 min read

Frequently asked questions

How is tax on a bonus calculated?
A bonus is taxed at your marginal rate — the rate on your top slice of income — because it stacks on top of your salary. The cleanest way to find what you keep is to compare your take-home pay with the bonus against your take-home without it; the difference is the bonus net of tax. The calculator above does exactly that using current tax brackets.
Why does it feel like my bonus is taxed more than my salary?
Because it's taxed at your marginal rate, not your average rate. Your salary benefits from lower bands and any tax-free allowance first; the bonus sits entirely on top, in your highest band, so a bigger share is taken. It isn't taxed under a special 'bonus tax' — it's just that the whole bonus falls in your top bracket.
Why is the tax on my payslip different from what I actually owe?
Payroll systems often use a special method to withhold tax on one-off payments — a flat supplemental rate, or treating the bonus as if you earned it every pay period. That can take too much or too little in that single cheque. It reconciles when you file your tax return or over the course of the tax year, so the payslip figure isn't your final tax.
Can I reduce the tax on my bonus?
Often yes. Routing some or all of a bonus into a tax-advantaged pension or retirement account can avoid income tax (and sometimes social contributions) on that portion. Timing a bonus into a lower-income year, or using tax-sheltered accounts for what you keep, can also help. The right option depends on your country's rules.
Is take-home from a bonus the same as from regular pay?
No — proportionally you keep less of a bonus than of your base salary, because the bonus is taxed entirely at your marginal rate while your salary is taxed progressively through the lower bands first. That's why the effective rate shown on the bonus is higher than your overall effective tax rate.
Does a bonus push me into a higher tax bracket?
It can push part of your income into a higher band, but only the portion above the threshold is taxed at the higher rate — the rest of your income is unaffected. A bonus never reduces your overall take-home; you always keep some of it. In some systems, though, a bonus can trigger allowance withdrawal or extra repayments, which the calculator's regional notes flag.

Embed this calculator

Free to embed on your website, blog, or resource page — no signup, no fees, no API key. The calculator runs entirely in the visitor's browser. 

<iframe
  src="https://financecalcapp.com/embed/bonus-tax/au/"
  width="100%"
  height="680"
  frameborder="0"
  title="Bonus Tax Calculator"
  loading="lazy"
></iframe>
<p>Free <a href="https://financecalcapp.com/calculators/bonus-tax/au/">Bonus Tax Calculator</a> by <a href="https://financecalcapp.com">Finance Calc App</a></p>