Overtime Tax Calculator
Estimate the Australian tax and Medicare levy on overtime in 2026–27. See extra tax, after-tax overtime pay and the effective tax rate instantly.
Your results
Calculation breakdown
- Extra tax
- Extra tax = tax on (base + overtime − deductions) − tax on (base − deductions)
- Net overtime
- Net overtime kept = overtime pay − extra tax
Worked example
On a $75,000 base salary, adding $8,000 of overtime increases tax by about $2,560, so roughly $5,440 of the overtime is kept after tax — an effective rate of 32%.
Assumptions
- Assumes overtime is added on top of an existing base salary in the same financial year.
- The default $1,000 total models the 2026–27 standard work-related deduction for an eligible resident worker; enter a different total if appropriate.
- Includes the Low Income Tax Offset (LITO), where available, in both tax comparisons.
- Excludes HELP repayments, family Medicare settings, superannuation and any penalty-rate loadings beyond the amount entered.
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How this calculator works
This calculator compares estimated tax payable on your base annual salary with the estimate after overtime earnings are added. It uses resident tax brackets, LITO and the individual Medicare levy rules modelled here to estimate the extra tax and after-tax overtime pay; HELP and other personal circumstances are not included.
Uses 2026–27 settings. Last reviewed 30/09/2026; the applicable official references are listed below.
How overtime tax is estimated in 2026–27
Overtime is added to the base annual salary entered, then CalcAussie applies the 2026–27 Australian resident income-tax brackets and its Medicare levy estimate. The difference between tax before and after the overtime is the estimated extra annual tax attributable to that income.
Australia does not impose a separate overtime tax rate. Extra earnings are part of taxable income and may fall into a higher marginal bracket, but only the portion above a threshold is taxed at that higher income-tax rate.
- Extra tax = tax on (base salary + overtime − entered deductions) − tax on (base salary − entered deductions)
- After-tax overtime = overtime earnings − estimated extra tax
- Enter gross overtime pay after any penalty-rate loading
Why payslip withholding can look higher
Payroll withholding is calculated for each pay period using ATO schedules, so a payslip containing a large overtime payment can show more tax withheld than an annual comparison suggests. Final income tax is reconciled using total taxable income for the financial year.
The estimate includes the low income tax offset where applicable, but not other tax offsets, HELP repayments, the Medicare levy surcharge or individual Medicare exemptions and reductions. Overtime rates and when overtime applies depend on the relevant award, registered agreement or employment contract.
Official sources and assumptions
Check the official or authoritative references used to review this calculator's rates, formulas and assumptions.
Frequently asked questions
Why is my overtime taxed at a higher rate?
Overtime is taxed at your marginal rate because it is added on top of your base income, which may sit in a higher tax bracket.
Is overtime tax withheld differently to normal pay?
Payroll systems often withhold more tax from a pay period containing overtime, but this evens out at tax time based on total annual income.
Does this include superannuation on overtime?
No. The calculator estimates income tax and the Medicare levy, but not superannuation. Check the current qualifying-earnings rules and your award or agreement for the treatment of overtime.
Content responsibility
Maintained by CalcAussie and last updated 30 September 2026. Checks applied: calculation method, worked examples, Australian terminology, material assumptions, official references where an external rule applies, 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.