Tax on a bonus: how much is withheld and why
Updated 13 November 2026.
A bonus is taxed as normal income: at the end of the year it's added to your salary and taxed at your marginal rate. What feels different is the amount your employer withholds from the pay the bonus comes in.
How much is withheld from a bonus
Employers use the ATO's Schedule 5 "Method A". It spreads the bonus across the year's pays, works out the extra tax that adds to each pay, and multiplies it back up. For someone paid $3,000.00 a fortnight in 2026–27:
| Bonus | Tax withheld | Share of bonus | You receive |
|---|---|---|---|
| $1,000.00 | $312.00 | 31.2% | $688.00 |
| $2,000.00 | $624.00 | 31.2% | $1,376.00 |
| $5,000.00 | $1,560.00 | 31.2% | $3,440.00 |
| $10,000.00 | $3,172.00 | 31.7% | $6,828.00 |
The withholding is never more than 47% of the bonus (the top tax rate plus the Medicare levy).
Why it can look like a lot
If your employer simply added a $5,000.00 bonus to one fortnight's pay and used the normal tables, $1,852.00 would come out, because the tables would treat you as earning that much every fortnight. Method A takes $1,560.00, closer to the tax you'll actually owe on it.
Either way the withholding is only a prepayment. When you lodge your tax return, the bonus is taxed at your real marginal rate and any difference comes back as a refund or adds to a bill.
HELP debts and super
- If you have a HELP or other study loan, extra is withheld from the bonus to cover the compulsory repayment.
- Most bonuses tied to your ordinary work count as ordinary time earnings, so your employer pays 12% super on them. A bonus paid only for overtime doesn't attract super.
Add a bonus in the pay calculator or the tax refund calculator to see your own numbers.