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Second Job and the Tax-Free Threshold

Understand why a second job can have different withholding and take-home pay.

Withholding is not final tax

Payroll withholding across multiple jobs is reconciled when the tax return is lodged.

Total income matters

Tax is based on combined annual taxable income, not each job in isolation.

Estimate combined income

Add expected income from both jobs to understand the likely annual tax position.

Common questions

Should I claim the threshold on both jobs?

Usually people claim it from one payer, often the main job, but personal circumstances matter.

Why does my second job pay feel heavily taxed?

It may be withholding without the tax-free threshold.