Payroll Tax Calculator

Work out your 2026-27 payroll tax in any state or territory. Thresholds run from $1,000,000 in Victoria and WA to $2,500,000 in the NT, and every figure comes from the revenue office that sets it.

Jump to:Payroll Tax CalculatorHow It Is CalculatedRates by StateState by StateInterstate and GroupsCommon Wage Bills1 July 2026 ChangesFAQSourcesRelated Resources
Your Wage Bill
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Run each jurisdiction you pay wages in separately
$
Salary and wages plus super, fringe benefits and taxable contractor payments, for 2026-27
$
Every state combined, including the figure above. If you are grouped, use the whole group’s Australian wages.
Days you paid wages anywhere in Australia, out of 365
Your Results
NSW payroll tax for 2026-27
$98,100
$1,800,000 taxable · 5.45%
Tax-free threshold
$1,200,000
Rate
5.45%
Effective rate
3.27%
2026-27Amount
NSW taxable wages$3,000,000
Australian wages used for the tests$3,000,000
Tax-free threshold applied$1,200,000
Taxable wages$1,800,000
Rate5.45%
Base payroll tax$98,100.00
Total payroll tax$98,100.00
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NSW 2026-27: 5.45% above $1.2m. Annual liability for one employer, or a group treated as one employer, before rebates and exemptions.

How is payroll tax calculated?

Payroll tax is charged by each state and territory on the wages you pay there, once your total Australian wages pass that jurisdiction's threshold. It is an employer tax, separate from the federal tax you withhold from each employee's pay, which the PAYG withholding calculator works out. The method has the same shape in all eight jurisdictions; what changes is the threshold, whether it tapers, and whether the rate depends on your total Australian wages.

  1. Add up taxable wages. Total the wages you pay in the state for 2026-27, including super, fringe benefits and taxable contractor payments. Then total the same across every state, using the whole group if you are grouped.
  2. Test Australian wages against the threshold. Every jurisdiction measures its threshold against your total Australian wages, not just the local figure. Below it, there is nothing to pay.
  3. Apportion the threshold by wage share. Multiply the threshold by local wages over Australian wages. A business paying $900,000 of its $3,000,000 in NSW gets $360,000 of the $1,200,000 threshold.
  4. Apportion again by days. If you paid wages for part of the year, multiply by days paid over 365. WA says its threshold can be apportioned but publishes no annual formula, so the calculator runs WA on a full year.
  5. Apply the rate to what is left. Charge the rate on local wages above the apportioned threshold. In the NSW example that is 5.45% of $540,000, or $29,430.

For the reasoning behind each step, what counts as wages and how contractors are treated, read how to calculate payroll tax. This page is the calculator and the numbers.

What are the payroll tax thresholds and rates in each state for 2026-27?

Thresholds start at $1,000,000 and top out at $2,500,000. Four jurisdictions, Queensland, South Australia, the ACT and the NT, pick one rate from your total Australian wages and charge it on all taxable local wages, not just the slice above a band. Tasmania is the only one that charges two rates on two slices.

JurisdictionAnnual thresholdRate, 2026-27Threshold behaviourRate charged on
NSW$1,200,0005.45%Apportioned only, never taperedWages above the threshold
VIC$1,000,0004.85% (1.2125% regional)Deduction phases out at 50c in the dollar from $3m, nil at $5mWages above the deduction, plus surcharges above $10m and $100m
QLD$1,300,0004.75%, or 4.95% above $6.5m$1 off for every $7 over $1.3m, nil at $10.4mAll taxable wages at one rate, plus a levy above $10m
WA$1,000,0005.5%$2 off for every $13 over $1m, nil at $7.5mWages above the deductable amount
SA$1,500,0000% to 4.95% between $1.5m and $1.7m, then 4.95%Deduction capped at $600,000All taxable wages at one rate
TAS$1,250,0004% to $2m, 6.1% aboveApportioned only, never taperedTwo slices at two rates
ACT$1,750,0006.75%, 6.85%, 7.35%, 7.85% or 8.75%Apportioned only, never taperedAll taxable wages at one rate
NT$2,500,0005.5%, or 6.5% at $100m$1 off for every $2 over $2.5m, nil at $7.5mAll taxable wages at one rate
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South Australia's $1.5 million is the liability threshold; the deduction is a separate $600,000. The ACT caps eligible universities at 6.85%. Every row was checked against the revenue office or its legislation on 19 September 2026.

How does payroll tax work in each state and territory?

One example per jurisdiction, each run through the same engine as the calculator, for local-only employers unless stated.

New South Wales: one flat rate

5.45% on NSW wages above $1,200,000. The threshold is apportioned but never tapers. On $1,500,000 the threshold removes $1,200,000, leaving $300,000 taxable and $16,350 to pay.

Victoria: a phase-out and two surcharges

4.85% above a $1,000,000 deduction. From 1 July 2025 the deduction falls by 50 cents for every dollar of Victorian wages above $3 million and is gone at $5 million. At $4,200,000 the deduction is $400,000 and the tax $184,300.

Above $10 million of Australian wages the mental health and wellbeing surcharge and the COVID-19 debt surcharge each add 0.5%, so 1% on Victorian wages above the adjusted $10 million. Above $100 million each adds a further 0.5%, another 1% on Victorian wages above the adjusted $100 million. It is not 2% on everything. At $12,000,000 the base tax is $582,000 and the surcharges $20,000, a total of $602,000. Regional employers pay 1.2125% on the base but the surcharges in full, and the COVID-19 surcharge runs until 30 June 2033.

Queensland: a $1 in $7 taper and 4.95% on all wages

The $1,300,000 deduction reduces by $1 for every $7 of Australian wages above it and reaches nil at $10.4 million. At $3,000,000 the deduction is $1,057,143 and the tax $92,286 at 4.75%.

Once Australian wages pass $6.5 million the rate becomes 4.95% on all taxable wages, not just the excess. At $6,500,000 the tax is $282,286; at $6,600,000 it is $299,829, so $100,000 of extra wages costs $17,543. Above $10 million the mental health levy adds 0.25% on Queensland wages above the adjusted $10 million, plus 0.5% above $100 million: at $12,000,000 that is $5,000 on top of $594,000. Regional employers get 1% off the rate to 30 June 2030, but not above $350 million of Australian wages.

Western Australia: a diminishing threshold

5.5% on WA wages above a deductable amount that starts at $1,000,000 and falls by $2 for every $13 of Australian wages above it, reaching nil at $7.5 million. RevenueWA's own example of $1,200,000 gives a deductable amount of $969,231 and tax of $12,692.30. At $3,000,000 the deductable amount is $692,308 and the tax $126,923.06.

South Australia: a variable band

Nothing is payable until Australian wages pass $1,500,000. Between $1.5 million and $1.7 million the Payroll Tax Act 2009 (SA) sets the rate at (annualised Australian wages minus $1.5 million) ÷ $200,000 × 4.95%, and above $1.7 million it is 4.95%. The deduction is a separate $600,000. At $1,600,000 the rate is 2.475% on $1,000,000, which is $24,750. RevenueSA Online sets the final rate, and its indicative table cuts the rate to two decimal places.

Because the rate follows Australian wages, a smaller SA payroll can pay the full rate. $700,000 of SA wages in a $2,100,000 national payroll gets a $200,000 deduction and 4.95% on the rest, which is $24,750.

Tasmania: two slices at two rates

Nothing on the first $1,250,000, 4% on wages between that and $2 million, and 6.1% above $2 million. At $2,400,000 that is $30,000 on the 4% slice plus $24,400 on the 6.1% slice, $54,400 in all. An employer that chooses not to claim a threshold pays 6.1% on all Tasmanian wages.

ACT: one banded rate on everything above the threshold

The threshold is $1,750,000, and your total Australian wages pick one rate that applies to all taxable ACT wages: 6.75% to $20 million, 6.85% to $50 million, 7.35% to $100 million, 7.85% to $150 million and 8.75% above. At $3,000,000 the tax is $84,375. An employer paying $5,000,000 in the ACT out of $25,000,000 nationally gets a $350,000 threshold and pays 6.85% on the whole $4,650,000, which is $318,525.

Northern Territory: a $1 in $2 taper and 6.5% at $100 million

The $2,500,000 deduction falls by $1 for every $2 of Australian wages above it and is gone at $7.5 million. At $2,900,000 the deduction is $2,300,000 and the tax $33,000, not the $22,000 you would get by deducting the full threshold.

From 1 July 2026, employers and groups with Australian wages of $100 million or more pay 6.5% on all taxable NT wages. That test is not prorated for part years. $5,000,000 of NT wages in a $120,000,000 national payroll gets no deduction and pays $325,000.

How are interstate wages and grouped employers handled?

You lodge in each jurisdiction where you pay wages, and each one gives you only its share of the threshold:

Local threshold = full threshold × (local wages ÷ Australian wages) × (days paid ÷ 365)

The days are days you paid wages anywhere in Australia, not days in that state. Revenue NSW's own examples: $900,000 of NSW wages out of $3,000,000 gives a threshold of $360,000, and $1,500,000 paid over 184 days gives $604,931.51.

Tapers, rate bands and levy thresholds are all tested on Australian wages, so an employer with a small local payroll and a large national one can lose the whole deduction and pay the top rate in a state where it employs a handful of people.

Grouped businesses

Related businesses are grouped automatically and share one threshold. One member claims it, and every other member pays on all of its wages. Grouping rules are complex, so this calculator treats a group as one employer: enter the group's local and Australian wages and it returns the group's total liability.

How much payroll tax is payable on common wage bills?

Our calculation for 2026-27, for an employer paying all its wages in one jurisdiction for the full year, with no regional concession, rebate or exemption.

Wage billNSWVICQLDWASATASACTNT
$1,500,000$16,350$24,250$10,857$31,731$0$10,000$0$0
$3,000,000$98,100$97,000$92,286$126,923$118,800$91,000$84,375$41,250
$5,000,000$207,100$242,500$200,857$253,846$217,800$213,000$219,375$206,250
$10,000,000$479,600$485,000$492,171$550,000$465,300$518,000$556,875$550,000
$20,000,000$1,024,600$1,070,000$1,015,000$1,100,000$960,300$1,128,000$1,231,875$1,100,000
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The ranking moves with the wage bill. At $1,500,000, South Australia, the ACT and the NT charge nothing because their thresholds sit higher. At $3,000,000, the NT is cheapest at $41,250. By $20,000,000 every taper has run out and the rate decides it: South Australia is cheapest at $960,300.

What changed on 1 July 2026?

  • ACT. The threshold fell from $2,000,000 to $1,750,000, and five bands from 6.75% to 8.75% replaced the 6.85% general rate and its 0.5% and 1% surcharges. An 8.75% rate above $150 million had applied since 1 January 2026. Made by determination DI2026-151, in force from 1 July 2026.
  • NT. A new 6.5% rate for employers and groups with Australian wages of $100 million or more, made by the Treasury Legislation Amendment Act 2026 (assent 30 June 2026). The threshold, the taper and the 5.5% rate are unchanged for everyone else.
  • Queensland. No rate or threshold change. The 2026-27 Budget announced an extension of the apprentice and trainee rebate to 30 June 2027; QRO says details follow once the legislation passes, and we have not confirmed that it has.
  • NSW, Victoria, WA, South Australia and Tasmania. No rate or threshold change, and no payroll tax rate or threshold measure in their 2026-27 Budget material. Victoria's only payroll tax change was the accommodation allowance exempt amount, up from $323 to $328.85 a night.

Frequently asked questions

How do you calculate payroll tax?
Take your taxable wages in the state, subtract the threshold or deduction after apportioning it to your share of Australian wages and the days you paid wages, then multiply by the rate. An NSW-only employer with $1,500,000 of wages deducts $1,200,000 and pays 5.45% on $300,000, which is $16,350 for 2026-27.
What is the payroll tax threshold in each state for 2026-27?
Victoria and WA $1,000,000, NSW $1,200,000, Tasmania $1,250,000, Queensland $1,300,000, South Australia $1,500,000, the ACT $1,750,000 and the NT $2,500,000. In Victoria, Queensland, WA and the NT the deduction then shrinks as wages rise.
Which state has the lowest payroll tax?
It depends on the size of the wage bill, not the headline rate. Tasmania has the lowest headline rate, 4%, but only on wages between $1.25 million and $2 million. On $1,500,000 of local wages, South Australia, the ACT and the NT charge nothing. On $3,000,000, the NT is cheapest at $41,250, and on $20,000,000 it is South Australia at $960,300.
Is Queensland’s 4.95% rate charged only on wages above $6.5 million?
No. Once Australian wages pass $6.5 million, 4.95% applies to all taxable Queensland wages. That is why $100,000 of extra wages above the line, from $6,500,000 to $6,600,000, adds $17,543 of payroll tax, most of it from the 0.2% step on wages that were already taxed.
How do the Victorian payroll tax surcharges work?
Two surcharges, each 0.5%, apply to Victorian wages above an adjusted $10 million threshold, and each rises by a further 0.5% on Victorian wages above an adjusted $100 million. A Victorian-only employer with $12,000,000 of wages pays $20,000 in surcharges, 1% of the $2,000,000 above $10 million, on top of $582,000 of base tax.
Do grouped businesses share one payroll tax threshold?
Yes. Related businesses are grouped automatically and the group gets one threshold, tested against the whole group’s Australian wages. Grouping rules are detailed and one member claims the threshold for the group, so this calculator treats a group as a single employer and gives the group’s total liability.
How is payroll tax worked out if I only paid wages for part of the year?
The threshold is reduced by days paid over 365. An NSW employer paying $1,500,000 over 184 days gets a threshold of $604,931.51. South Australia also annualises your wages to set the rate. WA publishes no annual part-year formula, so this calculator runs WA on a full year.
Why does my monthly payroll tax not match the annual figure?
Monthly returns use a monthly threshold and estimated wages. The annual reconciliation then recalculates the year on actual wages against the annual threshold, and the difference is paid or refunded. This calculator gives the annual liability, which is what the reconciliation settles on.

Sources

All fetched 19 September 2026. Dates are each office's own.

The paygcalculator.au team
Australian PAYG and tax research

We build the calculators and write the guides on PAYG Calculator Australia. Every rate, threshold and due date is checked against current ATO source material and carries the financial year it applies to. Figures in worked examples are computed by the same tax engine that runs the calculators, so the numbers you read match the numbers you get. Corrections to hello@paygcalculator.au.

Published: 19 September 2026 · Updated: 19 September 2026