# Bonus tax calculator

Source: https://calculatax.com/salary/bonus-tax-calculator/
Title: Bonus Tax Calculator Australia 2026-27 | Calculatax
Last updated: 2026-11-06

This bonus tax calculator estimates the tax withheld from a bonus under the ATO's Schedule 5 and the tax you actually owe at 2026-27 rates. On a $105,000 salary, a $7,500 bonus has about $2,392 withheld and $2,400 of final tax, so you keep **$5,100**.

| Default example (2026-27) | Amount |
|---|---|
| Salary | $105,000 |
| Bonus | $7,500 |
| Pay cycle | Fortnightly, 26 pays |
| Normal fortnightly pay | $4,038.46 |
| Normal fortnightly withholding | $930 |
| Extra withheld on the bonus (Method A estimate) | $2,392 |
| Extra income tax and Medicare levy owed on the bonus | $2,400 |
| Shortfall at tax time | $8 |
| Bonus after tax | $5,100 |
| Employer super on the bonus at 12% | $900 |

*2026-27 resident rates and Schedule 1 coefficients from 1 July 2026, tax-free threshold claimed, no HELP debt, private hospital cover held. Source: ATO.*

A bonus is ordinary income, so it's taxed with the rest of your pay. There's no special bonus rate. It sits with the other [salary and pay calculators](https://calculatax.com/salary/) because the result depends on your salary as much as on the bonus.

## Withheld now vs owed at tax time

Withholding is an instalment. The tax you owe is worked out once, on your total taxable income for the year, when you lodge your return.

A resident earning $105,000 pays $24,120 in income tax and Medicare levy for 2026-27. Add a $7,500 bonus and taxable income becomes $112,500, so total tax rises to $26,520. That extra is $2,250 of income tax at 30% plus $150 of Medicare levy at 2%.

The whole bonus lands in the 30% bracket, which is why your [marginal tax rate](https://calculatax.com/tax/marginal-tax-rate-calculator/) of 32% (including Medicare) sets the figure. The $8 gap against what payroll withheld is small enough to disappear among other items on your return.

Two things can add to the cost. The 2026-27 singles threshold for the Medicare levy surcharge is $105,000, so without private hospital cover, $112,500 attracts a 1% surcharge on the whole amount. With a HELP debt, the compulsory repayment on $112,500 is $1,125 higher than on $105,000, because the bonus falls in the 15c band above $69,528.

### If payroll ran the bonus as one normal pay

The gap would be far larger if the bonus went through the normal fortnightly formula as one pay of $11,538.46. Schedule 1 assumes every pay looks like the current one, so it would withhold $4,112 from that fortnight instead of $930, or $3,182 for the bonus.

That's $782 more than the tax owed, and you'd only get it back after lodging.

**The $7,500 bonus with the surcharge and a HELP debt**

| Step | Working | Amount |
|---|---|---|
| Income tax and Medicare levy |  | +$2,400 |
| Medicare levy surcharge | 1% of $112,500 | +$1,125 |
| HELP repayment | Extra compared with $105,000 | +$1,125 |
| **Total cost of the bonus** |  | **$4,650** |
| **Left from the bonus** |  | **$2,850** |

## Methods A and B for withholding on a bonus

The ATO's Schedule 5 sets out how employers withhold from back payments, commissions, bonuses and similar payments. It has three methods:

- Method A spreads the extra payment across the year's pay periods.
- Method B(i) covers back payments for specific pay periods in the current year.
- Method B(ii) covers prior-year back payments and additional payments not tied to one period.

A bonus for a whole year's performance is usually not tied to one pay period. Your payroll system chooses the method, and the payslip may not say which one it used. The calculator models Method A, and the default example runs like this.

1. **Spread the bonus over the year.** Divide by the 26 pay periods in a fortnightly year: $7,500 ÷ 26 = $288.46.
2. **Add it to normal pay.** $4,038.46 + $288.46 = $4,326.92.
3. **Work out withholding on both.** Fortnightly withholding is $1,022 on the higher amount and $930 on normal pay.
4. **Multiply the difference by 26.** The $92 difference comes to $2,392 over the year.

Because the bonus is spread over a full year of pay, the withholding lands close to the final tax. Employers follow the exact steps on the [ATO Schedule 5 page](https://www.ato.gov.au/tax-rates-and-codes/schedule-5-tax-table-for-back-payments-commissions-bonuses-and-similar-payments/working-out-the-withholding-amount), and their rounding can shift the figure by a few dollars.

## What you keep from a $5,000 bonus at each bracket

You keep between $2,650 and $3,900 of a $5,000 bonus in 2026-27, depending on your salary. The rate on the bonus is the rate on the top slice of your income, not your average rate.

| Salary before the bonus | Extra tax and Medicare | You keep | Rate on the bonus |
|---|---|---|---|
| $40,000 | $1,100 | $3,900 | 22% |
| $90,000 | $1,600 | $3,400 | 32% |
| $150,000 | $1,950 | $3,050 | 39% |
| $200,000 | $2,350 | $2,650 | 47% |

*2026-27 resident rates with the 2% Medicare levy and the low income tax offset (LITO); no HELP debt or Medicare levy surcharge. Source: ATO.*

From $90,000 up, the whole bonus sits inside one bracket, so the rate is the bracket rate plus 2%.

### Why the $40,000 row costs more than it looks

Income tax on the extra $5,000 is $750 at 15%. The bonus also cuts LITO from $575 to $325, a loss of $250, and adds $100 of Medicare levy. So the real rate is 22%, not the 17% you might expect.

## Is super paid on a bonus?

Usually yes, when the bonus relates to your ordinary hours of work. In the default example, 12% of $7,500 is $900 of employer super. Your payslip shows whether super was paid on the bonus.

### From 1 July 2026

The super guarantee is calculated on "qualifying earnings", which replaced ordinary time earnings under Payday Super ([ATO super guarantee rates and thresholds](https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/super-guarantee)). The bonus rule carries over. The ATO's [qualifying earnings list](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-on-payday/what-payments-are-qualifying-earnings) includes performance bonuses and Christmas bonuses, but excludes a bonus solely for work performed entirely outside ordinary hours.

### Until 30 June 2026

Under the ordinary time earnings rules, a bonus for ordinary hours attracted the super guarantee. A bonus paid only for overtime didn't.

## Sending a bonus to super instead

Salary sacrificing a bonus into super swaps 32% tax for 15% contributions tax in the default example. Sacrificing the full $7,500 saves $2,400 of income tax and Medicare levy, and the fund then deducts $1,125.

- **$6,375**: Ends up in super (After the fund's contributions tax)
- **$5,100**: In your hand otherwise (The same bonus paid as cash)

Before you ask payroll, check these conditions:

- The arrangement generally has to be in place before you become entitled to the bonus.
- Sacrificed amounts count toward the $32,500 concessional cap for 2026-27. Sacrificed pay that would otherwise be qualifying earnings still attracts the 12% super guarantee, so employer super is 12% of $112,500, or $13,500. Adding the $7,500 sacrifice gives $21,000, inside the cap.
- Sacrificed super is reportable, so it still counts toward income for the Medicare levy surcharge and for HELP repayments.

The money is preserved until at least age 60 for anyone born from 1 July 1964. The [salary sacrifice super calculator](https://calculatax.com/super/salary-sacrifice-super-calculator/) models regular sacrifices across a year.

## When the bonus estimate will differ

The calculator assumes you're an Australian resident with one employer and that the bonus is your only extra income for the year. It doesn't model:

- A second job, investment income or deductions. Each one changes your taxable income.
- Employer rounding or a different Schedule 5 method.
- The low-income Medicare levy reduction for 2026-27. Those thresholds haven't been announced yet.

- [Pay rise calculator](https://calculatax.com/salary/pay-rise-calculator/): A bonus taxed through payroll is no different from a pay rise of the same size over the year, so this gives the same annual figure.
- [Overtime calculator](https://calculatax.com/salary/overtime-calculator/): Handles extra hours.
- [Penalty rates calculator](https://calculatax.com/salary/penalty-rates-calculator/): Handles weekend shifts.
- [Pro rata salary calculator](https://calculatax.com/salary/pro-rata-salary-calculator/): Gives the base salary to enter if you start or finish a job mid-year.

## Bonus tax questions: whether bonuses are taxed, withholding, the rate and super

### Are bonuses taxed?

Yes. Bonuses are assessable income, including sign-on bonuses, Christmas bonuses and performance bonuses. Your employer withholds tax when it pays the bonus, and the final tax is settled in your return. On a $105,000 salary in 2026-27, a $7,500 bonus adds $2,400 of income tax and Medicare levy, leaving $5,100.

### How is bonus pay taxed?

It's taxed at your marginal rate once the year ends. During the year, your employer withholds tax using Schedule 5, which can spread the bonus across the year's pay periods. In the default example, Method A withholds about $2,392 and the final tax is $2,400, so the difference at tax time is around $8.

### How much is the tax on bonuses?

The tax on a bonus equals your marginal rate plus the 2% Medicare levy for most people. In 2026-27, a $5,000 bonus costs $1,600 at a $90,000 salary and $2,350 at $200,000. Below $66,667, lost low income tax offset adds to the cost: at $40,000 the bonus is taxed at 22%.

### Do bonuses attract super?

Yes, in most cases. Performance and Christmas bonuses are qualifying earnings from 1 July 2026, so 12% of a $7,500 bonus is $900 of super. A bonus solely for work entirely outside ordinary hours is excluded. Contributions are due in your fund within 7 business days after payday, and employers can stop at the $270,830 annual maximum.

*Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.*

## Sources

- [ATO: Schedule 5: tax table for back payments, commissions, bonuses and similar payments](https://www.ato.gov.au/tax-rates-and-codes/schedule-5-tax-table-for-back-payments-commissions-bonuses-and-similar-payments/working-out-the-withholding-amount)
- [ATO: Schedule 1 coefficients (weekly)](https://www.ato.gov.au/tax-rates-and-codes/payg-withholding-schedule-1-statement-of-formulas-for-calculating-amounts-to-be-withheld/coefficients-to-use-in-formulas-for-withholding-from-weekly-payments)
- [ATO: Tax rates for Australian residents](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents)
- [ATO: Super guarantee](https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/super-guarantee)
- [ATO: What payments are qualifying earnings](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-on-payday/what-payments-are-qualifying-earnings)