[Updated March 2025]
Wondering how much do you get taxed on a second job? The answer is second job tax rates don’t exist; your tax liability will be based on your total assessable income.
Taxes are confusing enough but what if you work a second job or have a side gig? If you want to lodge an accurate, timely tax return, read on to learn about how taxation works when you have more than one job.
The amount of tax you pay when working a second job is determined by your assessable income, which is the total annual income from all earning sources.
This could be your primary job, along with any freelance projects, side gigs, or part-time jobs. Australia follows a progressive tax system.
This means the higher income brackets incur higher tax rates.
Below are the tax rates for this financial year for residents and non-residents.
Taxable Income |
Tax on this Income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Note: The above rates include the Medicare levy of 2%.
Taxable Income |
Tax on this Income |
|---|---|
| $0 – $120,000 | 32.5c for each $1 |
| $120,001 – $180,000 | $39,000 plus 37c for each $1 over $120,000 |
| $180,001 and over | $61,200 plus 45c for each $1 over $180,000 |
Source: ATO 2025
We’ve heard from many of our clients that they find mock scenarios helpful for understanding second job tax rates.
So if you are wondering how much do you get taxed on a second job, we’ll cover examples of:
If you earn less than $18,200 a year, this is considered below the tax-free threshold. This means you will not owe income tax.
Here’s an example of staying under the tax-free-threshold.
Mock Example
Jamie works part-time at a cafe earning $9,000 a year and also does some weekend work at a bookstore, where she earns an additional $8,000 a year. So, her total money made from both jobs is $17,000.
Total income: $17,000 (under the $18,200 threshold)
Tax owed: $0 (because she’s under the tax-free threshold)
Jamie can fill out a withholding declaration at both jobs saying she wants to claim the tax-free threshold, meaning no tax will be taken out of her pay because she expects to earn less than $18,200. If any tax was mistakenly taken out, Jamie would get it back when she does her tax return.
If you have more than one source of income and exceed the tax-free threshold, you can only claim the tax-free threshold on your highest paying job.
Mock Example
Carlos has a full-time job earning $32,000 a year. Mid-year, he starts a side gig for extra cash, adding $4,000 to his income.
Main job income: $32,000
Side gig income: $4,000
Total income: $36,000 (over the $18,200 threshold)
At his side gig, Carlos needs to fill out a withholding declaration stating that he does not wish to claim the tax-free threshold because he is already claiming it at his main job. This ensures the right amount of tax is taken out and helps avoid a big tax bill at the end of the year.
For his total income of $36,000, the tax calculation based on the 2024–25 rates is as follows:
The first $18,200 is tax-free.
The remaining $36,000 – $18,200 = $17,800 is taxed at 16 per cent.
Tax on $17,800 at 16% is $2,848.
Carlos’s actual tax may vary due to deductions or offsets, but this gives a basic idea of how it works.
When your withholdings are calculated on your total income without considering deductions, you might end up with too much tax withheld.
Mock Example
Priya earns $50,000 from her main job and $5,000 from freelancing. Because she also has work-related expenses and makes charitable donations, she often gets a big refund at tax time.
Total income: $55,000
The tax calculation for a $55,000 income using 2024–25 rates is:
Total tax liability: $4,288 + $3,000 = $7,288.
By applying for a withholding variation, Priya can adjust the tax withheld so that it more accurately reflects her expected tax liability after deductions, potentially reducing the amount withheld from her pay.
If you have a primary job and also earn from a side gig or freelance work, your employer withholds tax only on your primary job’s income. Any extra income may not have tax withheld automatically, meaning you could owe extra tax when you lodge your return.
Mock Example
Simon has a day job that pays $70,000 a year and works as a photographer on weekends, earning an extra $10,000. He assumed the tax withheld from his day job would cover all his tax obligations, but his extra earnings were not factored in.
Day job income: $70,000
Photography income: $10,000
Total income: $80,000
Using the 2024–25 tax rates:
Total tax liability: $4,288 + $10,500 = $14,788.
Since Simon’s day job only withholds tax based on a $70,000 income, he might underpay his tax by around $3,000. Simon can correct this by submitting a new withholding declaration to his main employer or by setting aside part of his photography income to cover the extra tax when he lodges his return.
Unexpected changes in income can have a significant effect on your tax return. If you experience a change in income, it is important to notify your tax professional or check with the ATO.
Mock Example
Ethan earns $20,000 from a part-time job and $15,000 from tutoring. Halfway through the year, he loses the tutoring job.
Initial total income: $35,000
New total income: $20,000 (after losing the tutoring job)
With the loss of the tutoring income, Ethan’s total taxable income decreases. Originally, he did not claim the tax-free threshold on his part-time job. He now adjusts his withholdings by submitting a new withholding declaration to the ATO to ensure the correct amount of tax is withheld from his remaining income.
If you have a main job where tax is withheld, the same rules apply to that income. However, for income from freelancing or contracting, no tax is withheld automatically since you are your own boss. This means you need to set aside a portion of your freelance income to cover your tax liability.
Mock Example
Zoe has a regular job paying $40,000 a year and she also starts doing freelance graphic design work, expecting to earn an extra $4,000.
Main job income: $40,000
Freelance income: $4,000
Total income: $44,000
Under the 2024–25 tax rates:
As an Australian resident, you are exempt from paying income taxes on the first $18,200 you earn in a financial year. For example, if your total assessable income is $17,500, you will not owe any taxes.
If you are only an Australian resident for a portion of the year, you may still qualify for an adjusted tax-free threshold.
If you are an Australian resident and you want to claim the tax-free threshold, you can
claim it on the Tax File Number Declaration (TFN) given to your payer when starting a new job or receiving a Centrelink payment.
When asked, “Do you want to claim the tax-free threshold from this employer?”, simply answer “Yes”.
Then, you will not pay tax for income under $18,200. For earnings over $18,200, your payer will withhold tax.
If you don’t claim the tax-free threshold, it will result in higher upfront taxes but a potentially larger refund at the end of the year. You can learn more about the tax-free threshold in our guide here: What Happens If I Don’t Claim the Tax-Free Threshold?
Australian tax law counts any additional work beyond your main employment as a second job.
A second job includes:
The ATO defines a withholding declaration as “authorising your payer to adjust the amount of tax withheld from your payments”.
The ATO states that you can use this declaration to claim or discontinue claiming the tax-free threshold, advise your payer that you have become an Australian resident for tax purposes, and a variety of other reasons. You can learn more here on the ATO’s site: Withholding Declaration.
Our Tax Refund Calculator can give you a rough estimate simply by entering your total income. If you are curious about the second job tax rate, make sure to include your earnings from all income sources to get the most accurate estimate.
To lodge your tax return with multiple jobs, gather all of your income information, including any sources of additional income beyond your primary employment.
Be sure to claim any tax offsets or deductions, if applicable, to your second job. Throughout the year, keep detailed records of your expenses, income, deductions, and receipts related to any sources of income.
If your total annual income is less than $18,200, you can claim the tax-free threshold. If you earn over $18,200, you will likely receive a tax bill and be responsible for paying any taxes you owe.
Understanding second job tax rates is essential for managing your finances effectively.
Remember, if your total income is under $18,200, you may not owe any tax. However, if you exceed this threshold, ensure you’re only claiming the tax-free threshold on your highest earning job.
Adjust withholdings if necessary to avoid over or underpaying taxes, and keep accurate records of all income sources.
Need help understanding your personal tax obligations? Our team of tax professionals are here to assist you every step of the way. Don’t miss out on potential tax refunds—reach out today for expert guidance on maximising your tax return.
Disclaimer: The information on this blog is for general informational purposes only and should not be considered professional advice. Any examples provided are for illustration purposes only and may not apply to your situation. Consult a qualified professional before making decisions based on the content. We make no guarantees regarding the accuracy or reliability of the information. We are not liable for any loss or damage resulting from the use of this blog. Third-party links are provided for convenience; we do not endorse their content. By using this blog, you agree to these terms.
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