Is overtime taxed more? How tax on overtime works
Updated 13 November 2026.
There's no separate tax rate for overtime. It's ordinary income, added to your pay and taxed at your marginal rate like the rest of your salary.
Why more tax comes out of a pay with overtime
Tax withheld is worked out on each pay as if you earned that amount every pay. A week with overtime looks like a higher salary, so the extra dollars are withheld at your top marginal rate. For someone normally paid $1,400.00 a week in 2026–27:
| Overtime that week | Extra tax withheld | Share withheld | Extra take-home |
|---|---|---|---|
| $100.00 | $32.00 | 32.0% | $68.00 |
| $200.00 | $64.00 | 32.0% | $136.00 |
| $300.00 | $96.00 | 32.0% | $204.00 |
| $500.00 | $160.00 | 32.0% | $340.00 |
Those rates are close to what you'll pay on that income at tax time (your marginal tax rate plus the 2% Medicare levy), so overtime rarely causes a big refund or bill on its own.
Is super paid on overtime?
Usually not. The 12% super guarantee is paid on ordinary time earnings, and overtime hours are generally excluded. Check your award or agreement, because a few treat some extra hours as ordinary hours.
Overtime and a HELP debt
If you have a study loan, extra is withheld for the compulsory repayment on overtime too. Repayments are worked out on your total income for the year.
Use the pay calculator and open "Add overtime or a bonus" to try your own hours and rate.