Guide
Bonus vs Salary Increase: Which Is Better After Tax?
Compare one-off bonus income with a permanent salary increase using after-tax thinking.
Written for Australian workers and job seekers · Updated 2026-07-11 · General information only
Plain-English answer
Helpful before using the calculator
Updated 2026-07-11
What this page helps you answer
What this pay, tax or salary topic means in simple terms.
What number or setting to check next in the calculator.
Which assumption could change the answer most.
When to stop using a rough estimate and ask payroll, the ATO or a qualified adviser.
Bonuses can be withheld differently
Payroll may withhold tax from a bonus using a method that feels high or low at the time. Your final annual tax position depends on total taxable income.
Salary increases compound over time
A permanent raise can lift future super contributions, leave loading calculations and next negotiation baselines.
Use the calculator both ways
Estimate your annual salary, then add the bonus or raise amount and compare the change in take-home pay.
Before you make a decision
Use the guide to understand the topic, then check the number with your own inputs. If the result affects a resignation, job offer, visa decision, redundancy, tax return or family budget, confirm the details with the right official source or adviser.
Check the financial year.
Confirm whether super is included or added on top.
Check HELP debt and tax residency settings.
Compare weekly, fortnightly and monthly cashflow.
Common questions
Are bonuses taxed more in Australia?
A bonus is not a separate permanent tax class, but withholding can look different from ordinary pay.
Should I prefer a raise or bonus?
A raise is usually stronger for recurring income, while a bonus may suit one-off performance or company results.