Leave Payout Tax Calculator
Estimate the extra tax on unused annual or long service leave paid out when leaving a job in Australia. Compare tax with and without the lump sum.
Your results
Calculation breakdown
- Extra tax
- Extra tax = tax on (salary + leave payout) − tax on salary alone
Worked example
On an $80,000 salary, an $8,000 unused leave payout adds roughly $2,560 of tax, leaving around $5,440 in the employee's pocket after tax.
Assumptions
- Models leave paid out on ordinary resignation, taxed at marginal rates.
- Genuine redundancy leave payouts can attract concessional treatment not modelled here.
How this calculator works
This calculator adds your unused leave payout to your annual salary and compares tax payable with and without the leave payout, showing the extra tax the payout attracts at your marginal rate. It uses resident tax brackets and the Medicare levy for the comparison.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 14/08/2026.
How the leave payout tax estimate is calculated
The calculator adds the unused leave payout to the annual salary entered, estimates resident income tax and the Medicare levy on both amounts, then shows the difference. That difference is the estimated extra annual tax associated with the payout.
Include the gross unused annual leave, leave loading and long service leave amounts that will be paid. The result is an annual tax comparison, so it may not match the amount initially withheld from the termination payment on your payslip.
- Compare estimated annual tax before and after the leave payout
- See the estimated after-tax amount remaining from the payout
- Use gross leave amounts before withholding
Why the amount withheld can be different
Unused leave can be treated differently depending on when it accrued and why employment ended, including genuine redundancy or approved early retirement circumstances. Payroll withholding is also calculated under ATO schedules rather than as a final tax return.
This calculator models the general marginal-rate comparison and does not determine special concessional treatment. Check the payment summary and current ATO guidance, or ask a registered tax agent about a termination with mixed leave periods or special circumstances.
Official sources and assumptions
Check the underlying Australian Government guidance used to review this calculator's rates and assumptions.
Frequently asked questions
Is leave payout taxed at a special rate?
In some cases unused leave on genuine redundancy is taxed concessionally; this calculator models the general case taxed at marginal rates.
Should I include leave loading?
Yes, include any leave loading in your leave payout amount if it applies under your award or agreement.
Does this include long service leave?
Yes, enter the total lump sum for any unused annual leave and long service leave combined.
Editorial review and responsibility
Reviewed by the CalcAussie editorial team on 21 September 2026. Review scope: Method, Australian terminology, material assumptions, source links and user-facing limitations.
Calculator results remain estimates based on the figures entered. Check material decisions against current official information and report a suspected error so it can be reproduced and corrected.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.
Actual entitlements can depend on your award, enterprise agreement, contract, employment status and individual circumstances.