Second job tax calculator Australia
A second job is not taxed at a special higher rate. Australia taxes your combined income under the normal brackets. The second job simply stacks on top of the first, so it is taxed at your marginal rate — and because you can claim the $18,200 tax-free threshold with only one employer, more is withheld from the second payslip during the year.
2026–27 ATO rates · last verified 15 August 2026Job 1 — your main job
Job 2 — the second job
Advanced options
Withholding vs what you actually owe
The withholding figures are modelled on an annual basis. Your employers use the ATO's per-period withholding schedules, which round differently and are generally a little higher — so treat the refund or bill below as an indication of direction and rough size, not an exact amount. The actual tax owed line is the precise annual figure.
Estimate only, based on ATO annual rates. Your employer's actual PAYG withholding follows the ATO withholding schedules and will differ slightly. Not financial advice.
How tax on a second job actually works
At tax time the ATO doesn't care how many jobs you have. It adds every payslip together and taxes the combined total under the normal 2026–27 brackets. Three things matter along the way:
1. The tax-free threshold applies once
You can only claim the $18,200 tax-free threshold with one employer — normally the one who pays you most. Your second employer withholds from the first dollar at the "no tax-free threshold" rate. That's why the second payslip looks harshly taxed: it's withholding, not your final tax. Over-withholding comes back as a refund.
2. Your real cost is the marginal rate
Because the second job's income stacks on top of the first, it's taxed at your marginal rate rather than getting its own tax-free threshold. That's the true cost of the second job — and it's exactly what you'd pay on a pay rise of the same size. The headline figure in the calculator above is that number.
3. HECS/HELP looks at the combined figure
Compulsory HECS/HELP repayments are based on total repayment income. Two jobs of $40,000 each mean an $80,000 repayment income — above the $69,528 threshold — even though neither employer alone would withhold a cent for it. This is a common cause of surprise tax bills. Tick the HECS toggle to model it.
Worked example: $60,000 main job + $20,000 second job
| Scenario | Income tax + Medicare | Take-home pay |
|---|---|---|
| Main job only — $60,000 | $9,620 | $50,380 |
| Combined — $80,000 | $16,120 | $63,880 |
| Extra tax caused by the second job | $6,500 | + $13,500 in your pocket |
The $20,000 second job is taxed at an effective 32.5% — the 30% bracket plus the 2% Medicare levy, plus the loss of a small amount of Low Income Tax Offset that the $60,000 salary alone was entitled to. You still keep $13,500 of it.
How this is calculated
The calculator does two separate sums and compares them, because that comparison is the actual question people are asking:
- What you truly owe. Job 1 + job 2 are added, then taxed once under the resident brackets, less the Low Income Tax Offset, plus the 2% Medicare levy, plus any compulsory HECS/HELP repayment on the combined repayment income.
- What your employers withhold. Each employer withholds as though its own payment were your only income — with the tax-free threshold if you claimed it there, and on the no-threshold basis if you didn't.
The difference between the two is your estimated refund or bill. That is why claiming the threshold twice shows up as a shortfall: both employers assume the first $18,200 is untaxed, but you only get it once.
Sources: ATO — Individual income tax rates · ATO — Study and training loan thresholds. Full method and assumptions: methodology.
Second job checklist
- TFN declaration: claim the tax-free threshold with your highest-paying employer only.
- Super: both employers must pay the 12% Super Guarantee — nominate the same fund to avoid duplicate fees.
- HECS/HELP: tick the HELP debt box on both TFN declarations so each employer withholds towards the combined repayment.
- Medicare Levy Surcharge: combined income can push you over the surcharge threshold if you don't hold private hospital cover.
- Deductions: you claim work-related deductions against either job's income in the same single tax return.
Frequently asked questions
Is a second job taxed at a higher rate in Australia?
No. There is no special second-job tax rate. At tax time the ATO adds all your income together and taxes the total under the normal brackets. More is usually withheld from a second job during the year because you can only claim the tax-free threshold with one employer, but any over-withholding comes back as a refund.
Should I claim the tax-free threshold on my second job?
Generally claim it with the employer who pays you the most, and not on the second job. If you claim it with both employers, too little tax is withheld and you are likely to get a tax bill when you lodge. Tick both threshold boxes in the calculator above to see the size of that shortfall for your own numbers.
How much tax will I actually pay on a second job?
The real cost is your marginal rate on the extra income. Earning $60,000 in your main job and $20,000 in a second job in 2026–27 means the second job costs about $6,500 in extra tax — an effective rate of 32.5% — because it stacks on top of the first salary. You keep $13,500.
Does a second job affect my HECS/HELP repayment?
It can. Your compulsory repayment is based on combined repayment income. Two jobs of $40,000 each produce an $80,000 repayment income — above the $69,528 threshold for 2026–27 — even though neither employer alone would withhold anything for it. Also check the HECS/HELP calculator.
Do I pay super on a second job?
Yes. Each employer must pay the 12% Super Guarantee on your ordinary time earnings, no matter how small the job is. Consider nominating the same super fund for both so you don't collect duplicate account fees.
Will I get a tax bill because of my second job?
Only if too little was withheld during the year — most commonly when the tax-free threshold was claimed on both jobs, or when combined income pushes you into a higher bracket than either employer assumed. The calculator above compares total withholding against your actual annual tax and shows the gap either way.