Bonus tax calculator
How much of a bonus you keep after the extra income tax, Medicare levy and optional HELP repayment.
Your tax for the year is worked out on all your income together, so a bonus is taxed at your marginal rate. Employers withhold tax from a bonus using ATO withholding rules that can differ from this, and any difference is settled when you lodge your tax return. Estimate only.
How this calculator works
A bonus is not taxed on its own. It is added to your other income, and the extra tax is the difference between the tax on your income with and without the bonus: extra tax = tax(salary + bonus) − tax(salary), plus 2% Medicare levy on the bonus.
Worked example for 2026-27: on a $90,000 salary, a $10,000 bonus lifts income to $100,000. Tax rises from $17,520 to $20,520, which is $3,000 extra, plus $200 of Medicare levy, so you keep $6,800, or 68%. Pay-time withholding may take more or less than that, with the balance settled when you lodge your tax return.
Sources and checks
Our figures and rules follow these official sources:
- ATO: Tax rates for Australian residents (page updated 13 August 2026)
- ATO: Medicare levy
- ATO: Study and training loan repayment income and rates (page updated 13 October 2026)
Figures last checked: 29 October 2026. Spotted a mistake? Tell us.