Payroll Tax Rates Australia 2026

The Payroll Tax Calculator determines your state-specific payroll tax liability based on your total Australian wages and the relevant state thresholds and rates.

How It Works

Select your Australian state or territory.
Enter your total annual wages paid to employees.
The calculator applies the specific state threshold and calculates the tax rate on the excess wages.

Formula & Calculation Logic

$\text{Taxable Wages} = \text{Total Wages} - \text{State Threshold}$ $\text{Payroll Tax} = \text{Taxable Wages} \times \text{State Payroll Tax Rate}$ If your total wages are below the threshold, your payroll tax is zero.

Worked Example

In NSW (2026), the threshold is $1.2 million and the rate is 5.45%. If your company pays$ 2,000,000 in wages: Taxable Wages = $2,000,000 -$ 1,200,000 = $800,000. Tax =$ 800,000 \times 5.45% = $43,600.

Result Interpretation

Below Threshold: You are exempt from payroll tax.
Above Threshold: You must register for payroll tax and pay the calculated amount on a monthly or annual basis.

FAQs

Do contractors count towards total wages?

Yes, in many cases, payments to contractors and superannuation contributions are included in taxable wages.

What if I have employees in multiple states?

You must calculate your tax proportionately based on the wages paid in each state and their respective thresholds.

Sources & Last-Reviewed Date

Sources: State Revenue Office (SRO) guidelines for NSW, VIC, QLD, WA, SA, TAS, ACT, NT.
Last-Reviewed: 2026-09-03

Payroll Tax Rates Australia 2026