Check your pay · 2026-27

Bonus tax calculator

A $5,000 bonus on top of $3,000 a fortnight should have $1,560 withheld (31.2%). Its real cost on your tax return is $1,600, so about $40 more is due at tax time.

Withheld from the bonus

$1,560.00

31.2% of the bonus

Pay this period, with the bonus	$8,000.00
Tax on normal pay	-$598.00
Tax on the bonus	-$1,560.00
In your account	$5,842.00
Real tax on the bonus (your return)	$1,600.00
Back (or owed) at tax time	-$40.00

The ATO's method, step by step

Payroll uses Schedule 5, Method A. With your figures:

Normal gross pay for the period, ignoring cents$3,000
Tax on that from the normal tables$598
Bonus divided by 26 pays in the year, ignoring cents$192
Step 1 plus step 3$3,192
Tax on step 4 from the normal tables$658
Step 5 minus step 2: the extra tax per pay$60
Step 6 times the number of pays$1,560
47% of the bonus (the cap)$2,350.00
Withheld from the bonus: the lower of steps 7 and 8$1,560

Why your bonus might look over-taxed

Some payroll systems simply add the bonus to that period's pay and use the normal tables, which treats you as if you earned that much every pay. On a large bonus that can withhold close to half. It is not the correct method, but it is not lost money either: the difference comes back when you lodge. Your bonus is taxed at your marginal rate (30% here, plus the 2% Medicare levy) on your return, nothing more.

Common questions

How much tax is taken out of a bonus in Australia?

It depends on your normal pay. Employers spread the bonus across the year's pays, work out the extra tax that adds to each one, then multiply back up (ATO Schedule 5, Method A). On $3,000 a fortnight, a $5,000 bonus has about $1,560 withheld: 31.2%.

Is a bonus taxed at a higher rate?

No. A bonus is ordinary income, taxed at your marginal rate on your tax return like the rest of your pay. What looks like a higher rate is usually the bonus being added to a normal pay and withheld as if you earned that combined amount every period, which some payroll systems still do.

What is the most that can be withheld from a bonus?

Under Method A, never more than 47% of the bonus: the top rate plus the Medicare levy.

Will I get the bonus tax back?

Only the part that was over-withheld. Your real tax is worked out on the whole year. If more was withheld than the bonus actually adds to your tax bill, the difference comes back as part of your refund.

More ways to check your pay

Payslip checkerIs the tax and super on your payslip right?Minimum wage 2026-27$26.44 an hour, and what it leaves after tax.Overtime & penalty ratesTime and a half, weekends and public holidays.Medicare levy surchargeIs hospital cover cheaper than the surcharge?Pay after tax by week, fortnight or monthFrom $500 a week to $20,000 a month.Tax return estimateRefund or bill for 2025-26 or 2026-27.Second job taxWhy two jobs can end in a tax bill.Sole trader & contractor taxWhat to set aside from each invoice.Pro rata & part-time salaryPart-time pay and hourly conversions.Annual leaveLeave built up, and what it is worth.

How this is worked out

Withholding follows the ATO's Schedule 5 Method A with the 2026-27 Schedule 1 coefficients. Method B gives a result closer to your real tax, but either is acceptable to the ATO.
"Real tax on the bonus" is the tax on a full year at your normal pay, with and without the bonus, including the Medicare levy and the low income tax offset.
Not for employment termination payments or unused leave paid out when you leave a job; those are taxed differently.

Estimate only, not tax advice. See our methodology.