🇦🇺 Australian Finance

Payroll Tax Calculator Australia

Calculate your payroll tax liability by state or territory — with 2025-26 rates, thresholds, and monthly breakdown. All 8 states and territories covered.

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Payroll Tax Calculator

Select your state and enter total annual wages to calculate payroll tax liability for FY2025-26.

Please enter total annual wages.
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Australian Payroll Tax Calculator — FY2025-26

This free payroll tax calculator calculates your employer payroll tax liability for each Australian state and territory for the 2025-26 financial year. Payroll tax is a state and territory tax levied on employers whose total Australian wages exceed the annual threshold set by each state. It is paid entirely by the employer — not deducted from employee pay — and is calculated only on wages above the threshold, not on total wages.

All rates and thresholds are sourced from the relevant state revenue offices and verified for FY2025-26 (1 July 2025 to 30 June 2026).

Payroll Tax Rates and Thresholds — All States FY2025-26

State / TerritoryAnnual ThresholdRateMonthly Threshold
NSW$1,200,0005.45%$100,000
VIC$900,0004.85%$75,000
QLD$1,300,0004.75%$108,333
WA$1,000,0005.50%$83,333
SA$1,500,0004.95%$125,000
TAS$1,250,0004.00%$104,167
ACT$2,000,0006.85%$166,667
NT$1,500,0005.50%$125,000

Rates verified against state revenue offices for FY2025-26. Rates may change annually — always confirm with the relevant state revenue office before lodging.

How Is Payroll Tax Calculated?

Payroll Tax = (Total Annual Wages − Annual Threshold) × Rate
Example (NSW, $2M wages): ($2,000,000 − $1,200,000) × 5.45% = $43,600

Payroll tax is calculated on wages above the threshold only, not on total wages. If your total Australian wages are below the threshold for your state, no payroll tax is payable. The threshold is an exemption, not a rate bracket.

💡 If you operate across multiple states, the threshold is shared across all states — you don't get a separate threshold per state. Grouping provisions apply to related businesses, which can affect when you must register and how the threshold is allocated. Confirm with your state revenue office if you operate across borders.

Worked Example — NSW Employer

A business in NSW pays total annual wages of $2,000,000 for FY2025-26. The NSW payroll tax rate is 5.45% and the annual threshold is $1,200,000.

  • Taxable wages: $2,000,000 − $1,200,000 = $800,000
  • Annual payroll tax: $800,000 × 5.45% = $43,600
  • Monthly payroll tax (approximate): $43,600 ÷ 12 = $3,633 per month
  • The business must register for payroll tax within 7 days of monthly wages exceeding $100,000.

What Wages Are Subject to Payroll Tax?

  • Salaries and wages: All regular employee payments including base salary, overtime, and bonuses.
  • Superannuation contributions: Employer super contributions above the statutory guarantee may be included depending on the state.
  • Allowances: Most allowances paid to employees are included.
  • Contractor payments: Payments to contractors may be included under certain conditions — each state has its own contractor provisions.
  • Fringe benefits: The grossed-up taxable value of fringe benefits is included in some states.
  • Not included: Workers compensation payments, some parental leave payments, and certain exempt wages vary by state.

When Do You Need to Register for Payroll Tax?

You must register for payroll tax when your total Australian wages (across all states and territories) exceed the threshold for any state in which you employ staff. Registration deadlines vary by state but are typically within 7 days of exceeding the monthly threshold. Late registration can result in back-assessments and penalties.

Frequently Asked Questions

What is payroll tax in Australia?
Payroll tax is a state and territory tax levied on employers based on the total wages they pay to employees above a set annual threshold. It is not deducted from employee pay — it is an additional cost borne entirely by the employer. Each state and territory sets its own rate and threshold, ranging from 4.00% in Tasmania to 6.85% in the ACT for FY2025-26.
Which state has the highest payroll tax rate in Australia?
The Australian Capital Territory (ACT) has the highest standard payroll tax rate in FY2025-26 at 6.85%, but also the highest threshold at $2,000,000. Tasmania has the lowest rate at 4.00% with a $1,250,000 threshold. NSW has the most commonly encountered rate for large employers at 5.45% with a $1,200,000 threshold.
Do I pay payroll tax on total wages or only wages above the threshold?
You pay payroll tax only on wages above the annual threshold — not on total wages. For example, an NSW employer with $1,500,000 in wages pays tax on $300,000 (the amount above the $1,200,000 threshold), not on the full $1,500,000. The threshold is a tax-free amount, not a rate bracket.
What is the payroll tax threshold in NSW for 2025-26?
The payroll tax annual threshold in NSW for FY2025-26 is $1,200,000, with a monthly threshold of $100,000. The rate is 5.45% on wages above the threshold. Businesses must register within 7 days of monthly wages first exceeding $100,000.
Does payroll tax apply if I operate in multiple states?
Yes — if you employ staff in multiple states, your total Australian wages are aggregated for the purpose of determining whether you exceed each state's threshold. The threshold is generally shared across group members under grouping provisions. You may need to register in each state where you have employees and apportion the threshold accordingly.
Are contractor payments subject to payroll tax?
Payments to contractors may be included in taxable wages under each state's contractor provisions. Generally, if the contractor is engaged primarily for labour rather than providing a specific result or outcome, the payments may be subject to payroll tax. Each state has different rules — confirm with the relevant state revenue office.
Is this payroll tax calculator free?
Yes — completely free with no registration required. All calculations happen instantly in your browser. This calculator provides estimates only — confirm your exact liability with your accountant or the relevant state revenue office before lodging.
Is my data private?
Yes — all calculations happen in your browser. NerdyTools does not store, transmit, or log any figures you enter. Your financial data never leaves your device.
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Sources & References

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Calculations verified against authoritative sources: business.gov.au — Payroll Tax Guide · ATO — Payroll Tax

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