How much tax should I pay on a second job?

In Australia, tax on a second job is based on your total income across both jobs for the financial year—not a separate tax rate just for the second job.

Here’s a breakdown of how it works:

1. Tax-Free Threshold

• You can only claim the tax-free threshold ($18,200) from one employer, usually your primary job.

• Your second employer will withhold tax at a higher rate because you're not claiming the threshold there.

2. How Your Second Job is Taxed

• Your second employer will usually withhold tax as if all the income they pay you is on top of your main job’s income.

• This often means more tax is withheld upfront to avoid a tax debt at the end of the year.

3. Example Tax Brackets (2024–25)

Taxable IncomeTax Rate$0 – $18,200Nil$18,201 – $45,00019%$45,001 – $120,00032.5%$120,001 – $180,00037%Over $180,00045%

Your second job’s income is added on top of your main job’s income, so if your first job already pushes you into a higher bracket, your second job will be taxed accordingly.

What You Should Do

• Tell your second employer NOT to claim the tax-free threshold.

• Use the tax withheld calculator for an estimate of how much tax will be withheld.

• Consider adjusting your tax withheld if you’re worried about a tax bill at the end of the year.