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Second Job Tax Calculator Australia 2026-27

Both jobs are taxed once on combined income, but the second employer withholds $180 (18.0%) from a $1,000 fortnight without the tax-free threshold.

Official ATO ratesUpdated FY2026-27Free foreverNo signup required

Calculate Tax on Two Jobs

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Job 1 — With Tax-Free Threshold

Gross$60,000
Tax + Medicare-$9,620
Take-Home$50,380
Effective rate: 16.0%

Job 2 — No Tax-Free Threshold

Gross$25,000
Tax + Medicare-$4,472
Take-Home$20,528
Effective rate: 17.9%

Combined — End of Financial Year

Combined Income$85,000
Total Withheld-$14,092
Actual Tax Liability-$17,720
Estimated Tax Debt-$3,628
Combined effective rate: 20.8%

Disclaimer:

This calculator provides estimates based on current ATO PAYG withholding schedules. Job 2 withholding uses an approximate "no tax-free threshold" rate. Your actual refund or debt depends on deductions, offsets, and other income. For personal tax advice, consult a registered tax agent.

Based on official ATO tax tables for FY2026-27

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There is no separate tax rate for a second job in Australia: income from both jobs is added together and taxed once at the 2026-27 marginal rates. What differs is withholding, because the second employer uses the ATO's no-tax-free-threshold scale, which takes $180 (18.0%) from a $1,000 fortnight instead of applying the $18,200 threshold twice. Over-withholding is refunded at tax time.

Why Is My Second Job Taxed More?

Your second job is not actually taxed at a higher rate. The ATO taxes your combined income using the same progressive brackets. The difference is in how tax is withheld throughout the year.

On your primary job, you claim the tax-free threshold of $18,200. Your employer factors this into PAYG withholding, so the first $18,200 has no tax withheld. On your second job, you do not claim the threshold. Your second employer withholds tax from the first dollar using the no-threshold scale, which starts at 15%, so your second pay packet looks smaller.

At tax time, the ATO calculates your actual liability on your total combined income. Because the no-threshold scale withholds as if the second job were your only income, it usually withholds too little once your main job reaches a higher bracket: with a $60,000 main job and a $20,000 second job, you would owe about $2,808. Use the Income Tax Calculator to see how progressive brackets work on your combined income.

What Is the Tax Rate on a Second Job?

There is no special second job tax rate in Australia. The income is taxed at your marginal rate on your combined income; only the withholding differs, because the second employer uses the ATO's no-tax-free-threshold scale. That scale starts at 15%, and it never reaches 50% — the table shows what it takes from each fortnightly pay in 2026-27.

Tax withheld from a second job each fortnight, no tax-free threshold, 2026-27
Second job pay per fortnightTax withheldWithholding rate
$250$3815.2%
$500$8216.4%
$750$13417.9%
$1,000$18018.0%
$1,500$33622.4%
$2,000$49824.9%

ATO Schedule 1 scale 1 (no tax-free threshold), Medicare levy included, no HECS-HELP. If you have not given the employer your tax file number, it must withhold at the no-TFN rate instead.

The Tax-Free Threshold Explained

The tax-free threshold is the first $18,200 of annual income on which no income tax is payable. Every Australian resident taxpayer is entitled to this threshold, but you can only claim it with one employer at a time.

When you start a new job, your Tax File Number Declaration asks whether you want to claim the tax-free threshold. If you tick "yes" on both jobs, both employers withhold less tax, and you end up with a tax debt at the end of the financial year — about $3,183 on two $20,000 jobs.

Always claim the threshold on the higher-paying job to minimise under-withholding. See the PAYG Withholding Tables for the exact withholding rates with and without the threshold.

How to Optimise Tax Across Two Jobs

Workers with two jobs can take 3 practical steps to manage their tax position throughout the financial year.

  1. Claim the tax-free threshold on the higher-paying job only. This ensures maximum withholding on the secondary income, reducing the risk of a year-end tax debt.
  2. Request additional withholding. If you know the standard no-TFT rate will under-withhold, submit a withholding variation to the ATO or ask your employer to withhold extra from each pay.
  3. Set aside tax from your second job. Put 30% of your second job income into a separate savings account. Any amount not needed for tax at EOFY becomes a bonus.

Use the Tax Return Calculator mid-year to estimate whether you are on track for a refund or a debt, and adjust your withholding accordingly.

Second Job Tax Comparison Table

The table below shows how withholding and actual tax differ at common second job income levels, assuming a primary job salary of $60,000.

Job 2 SalaryJob 2 WithheldActual Tax on Job 2Est. Refund
$10,000$1,508$3,300-$1,792
$20,000$3,588$6,500-$2,912
$30,000$5,824$9,700-$3,876
$50,000$12,272$16,100-$3,828
$80,000$21,892$26,050-$4,158

Refund estimates are approximate. Actual results depend on deductions claimed and total assessable income. See the Australian tax brackets for the full rate schedule.

How this calculator works▼
  1. Job 1 tax uses standard resident progressive brackets with LITO applied.
  2. Job 2 withholding applies the ATO's 2026-27 Schedule 1 "no tax-free threshold" scale (which includes the Medicare levy) to fortnightly pay.
  3. Combined actual liability applies progressive brackets to total income from both jobs.
  4. Estimated refund = total withheld across both jobs minus actual combined tax liability.

All rates from the ATO, last verified 9 October 2026.

Frequently Asked Questions

It isn't taxed at a higher rate; more is withheld. You can claim the $18,200 tax-free threshold from only one employer, so your second employer withholds from the first dollar using the 'no tax-free threshold' scale, which starts at 15% in 2026-27. At tax time the ATO works out tax on your combined income: too much withheld comes back as a refund, too little becomes a bill.

No. There is no 50% rate. With no tax-free threshold, $500 a fortnight has $82 withheld (16.4%), and a $20,000 second job on top of a $60,000 salary adds $6,500 in tax (32.5%). Only if you give no tax file number does the employer withhold 47%.

Your second job's income is taxed at your marginal rate on combined income. On a $60,000 main salary, a $20,000 second job adds $6,500 to your tax for 2026-27. The second employer withholds only about $3,588 across the year, so you would owe about $2,808 at tax time unless you ask for extra to be withheld.

Financially, you keep most of it. On top of a $60,000 salary, a $20,000 second job leaves $13,500 after tax and Medicare levy, and the second employer also pays 12% super on your ordinary earnings. Higher earners keep less of each extra dollar, and a HECS-HELP debt takes a further cut once combined income passes the repayment threshold.

Yes. Always claim the tax-free threshold on the job that pays more. This reduces withholding on your largest income source and minimises the chance of a tax debt at the end of the financial year.

Not usually, unless both jobs are small. The 'no tax-free threshold' scale withholds as if the second job were your only income above the threshold, so when your main job already reaches a higher bracket it withholds too little. With a $60,000 main job and a $20,000 second job, you would owe about $2,808 at tax time. You can ask the second employer to withhold extra to avoid a bill.

Yes. All income from every employer must be reported on your tax return. Each employer reports your earnings to the ATO through Single Touch Payroll, so the ATO already has records of both jobs. You do not need to notify the ATO separately, but you must include both when you lodge.

Not through the tax system. Your second employer can tell from your TFN declaration that you are not claiming the tax-free threshold, but the ATO does not tell your main employer about your other job. Check your employment contract, though: some require you to disclose other work or avoid conflicts of interest.

Both employers withhold too little, and you usually get a tax bill when you lodge. With two $20,000 jobs both claiming the threshold, only $312 is withheld all year, but tax and Medicare levy on $40,000 come to $3,495, leaving about $3,183 to pay.

Yes. Both employers must pay the 12% Superannuation Guarantee on your ordinary time earnings, regardless of whether you claim the tax-free threshold with them.

Related Calculators

Income Tax Calculator

See your bracket-by-bracket tax breakdown on any salary

Tax Return Calculator

Estimate your refund or tax debt at the end of the financial year

PAYG Withholding Tables

View exact PAYG withholding amounts with and without the tax-free threshold

Tax Brackets Guide

Understand how progressive tax brackets apply to your combined income

See Your Full Pay Breakdown

Get the complete picture across both jobs with income tax, Medicare, HECS, and super.

Calculate Your Take-Home Pay →

Sources & References

  1. 1
    PAYG withholding — no tax-free threshold— Australian Taxation Office
  2. 2
    Tax-free threshold eligibility— Australian Taxation Office
  3. 3
    Individual income tax rates— Australian Taxation Office

Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.

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People reading this page usually work these out too.