Bonus Tax Calculator — Updated for 2025–2026
Bonus Tax Calculator: Schedule 5 Withholding vs Real Tax
Work out exactly how much of your bonus you keep after PAYG, Medicare and HECS. The result shows Schedule 5 payslip withholding alongside the actual marginal tax you'll owe at lodgment — so you can see at a glance how Schedule 5 withholding compares to your real tax liability.
Bonus Tax
Bonus details
Bonus Tax Breakdown
You keep
$3,400
out of your $5,000 bonus
32.0% effective rate on bonus
- Total tax
- $1,600
- Bonus eff. rate
- 32.0%
- Marginal rate
- 30.0%
- Overall eff. rate
- 21.8%
- Base salary eff. rate
- 21.2%
- Combined take-home
- $70,412
Tax on Your Bonus
- Income tax on bonus
- $1,500
- Medicare Levy
- $100
- Total deducted
- $1,600
- Net bonus
- $3,400
Schedule 5 Withholding vs Real Tax
- Schedule 5 withholding (payslip)
- $2,016
- Real tax owed at lodgment
- $1,600
- Estimated refund at tax time
- $416
Annual Summary
- Base salary
- $85,000
- Base take-home
- $67,012
- Combined gross (base + bonus)
- $90,000
- Combined take-home
- $70,412
See your full annual take-home
View your complete yearly pay breakdown including this bonus.
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This calculator shows the actual tax on your bonus based on ATO income tax brackets. Your payslip may show higher withholding because employers use ATO Schedule 5 annualisation methods — any excess is refunded when you lodge your tax return. This is not financial advice. Source: ATO Schedule 5 — Tax table for back payments, commissions, bonuses and similar payments.
Bonus Tax Examples, 2025–2026
Quick reference for common base-salary and bonus combinations. Assumes tax-free threshold claimed, no HECS debt, and no salary sacrifice.
| Base Salary | Bonus | Tax on Bonus | You Keep | Eff. Rate |
|---|---|---|---|---|
| $60,000 | $5,000 | $1,675 | $3,325 | 33.5% |
| $80,000 | $10,000 | $3,200 | $6,800 | 32.0% |
| $95,000 | $5,000 | $1,600 | $3,400 | 32.0% |
| $130,000 | $20,000 | $7,700 | $12,300 | 38.5% |
| $160,000 | $25,000 | $10,125 | $14,875 | 40.5% |
| $200,000 | $50,000 | $24,250 | $25,750 | 48.5% |
Schedule 5 vs marginal — how bonus tax works
When you receive a bonus, your employer adds it to your regular pay and calculates withholding using ATO Schedule 5. This schedule uses an annualisation method that temporarily treats the bonus as if you’d receive it every pay period, which often pushes withholding into a higher tax bracket than your actual average rate.
The actual tax you owe on the bonus is simply the difference between your total tax on (base salary + bonus) and your tax on (base salary alone). This calculator shows that real figure. If your employer withholds more than the actual tax (which is common), the excess is refunded when you lodge your tax return — the tax refund guide walks through how the reconciliation works.
If you want the fuller explanation of Schedule 5 withholding, plus how HELP, MLS, and super can change the result, the bonus tax guide walks through it in more detail.
Maximum withholding is capped at 47% of the bonus amount (the top marginal rate of 45% plus 2% Medicare Levy), regardless of what the annualisation method produces.
If you have a study loan, the HECS calculator shows how a bonus shifts your repayment, and the HECS/HELP repayment guide explains the income-band system in full. If the bonus pushes your income near the surcharge threshold, the Medicare Levy Surcharge guide covers thresholds, tiers and when private hospital cover removes the charge.
Frequently Asked Questions
How is a bonus taxed?
Your bonus is treated as ordinary income — there is no separate "bonus tax rate" in the tax code. It gets added to your regular salary for the year, and tax is calculated on the combined total using the 2025-26 ATO progressive brackets. The real tax you owe on the bonus is the difference between your tax on (salary + bonus) and your tax on salary alone. For a $95,000 salary with a $5,000 bonus, that real tax comes to $1,600, leaving $3,400 of the bonus in your pocket. Use the calculator above to see the figures for your own salary and bonus.
Why does my bonus look over-taxed on my payslip?
Employers don't tax bonuses at a higher rate — they withhold using ATO Schedule 5, which annualises the bonus by treating it as if you received that amount every pay period. That temporarily pushes the withholding rate higher than your actual marginal rate, so the bonus appears over-taxed at the moment of payment. Schedule 5 also caps total withholding at 47% of the bonus (top marginal rate of 45% plus 2% Medicare Levy). When you lodge your tax return the ATO recalculates your real liability on combined income, credits the withholding already paid, and refunds any excess.
How do I calculate tax on a bonus?
Three steps: calculate the income tax on (base salary + bonus) using the current 2025-26 marginal brackets, calculate the tax on the base salary alone, then subtract one from the other — the difference is the real tax on the bonus. Most payslips won't show this number directly because employers apply Schedule 5 withholding instead, which is reconciled at lodgment. Enter your salary and bonus into the calculator above and it runs both calculations side by side, including HECS/HELP, Medicare Levy and Medicare Levy Surcharge where they apply.
How much tax will I pay on a $10,000 bonus?
It depends on your base salary, since a bonus is taxed at your marginal rate. On $80,000, a $10,000 bonus draws roughly $3,200 in extra tax once income tax and 2% Medicare Levy apply, leaving about $6,800 — an effective rate of 32.0% on the bonus. Earn enough to cross into the 37% bracket and you'll pay more: on $130,000 a $20,000 bonus draws $7,700 in tax, leaving $12,300. Enter your own figures above for an exact result.
Is HECS/HELP repayment affected by a bonus?
Yes — your bonus counts towards your HECS/HELP repayment income, so a bonus can push you into a higher repayment band or trigger your first repayment if you were sitting below the threshold. HECS uses a tiered system: you pay more only on the portion of income that falls in each band, not a flat rate on everything. Bonuses are particularly sharp because payslip withholding doesn't always deduct HECS the same way it deducts income tax, so under-payment can land on your end-of-year tax bill. Toggle HECS on in the calculator above to see exactly how your bonus affects your repayment.
Can a bonus push me over the Medicare Levy Surcharge threshold?
Yes — and this is one of the most common bonus-related surprises. The Medicare Levy Surcharge starts at 1% of total income for singles earning over $101,000 without an appropriate private hospital cover, and the rate rises as income increases. Because the surcharge applies to your full income (not just the amount above the threshold), a bonus that nudges you over the line can trigger a noticeable extra bill at tax time. Tick the "Private health insurance" toggle above if you hold eligible hospital cover — the calculator removes the MLS from your result.
Does my employer pay super on a bonus?
Usually yes. The Superannuation Guarantee requires employers to pay 12% super on Ordinary Time Earnings (OTE), which generally covers performance bonuses, sign-on bonuses, and commissions paid for work performed during ordinary hours. A few categories sit outside OTE — overtime pay, genuine redundancy payments, and some lump sums — and don't attract super. Your bonus payslip should show a separate super line if super applies. If it doesn't, ask your payroll team to confirm whether the bonus is treated as OTE under the ATO's definition before assuming it's missing.
What is the maximum withholding rate on a bonus?
Schedule 5 caps total withholding at 47% of the bonus amount — the top marginal rate of 45% plus the 2% Medicare Levy. Even when the Schedule 5 annualisation formula produces a higher figure, your employer must cap the withheld amount at 47%. This cap exists to prevent obviously excessive withholding on one-off lump sums, but it's still common to see withholding well above your actual marginal rate on bonus payslips. The gap between withholding and real tax owed is reconciled when you lodge your tax return.
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