Guide
Second Job and the Tax-Free Threshold
Understand why a second job can have different withholding and take-home pay.
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.
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.