Payroll tax calculator
This payroll tax calculator estimates the yearly payroll tax a business pays in each Australian state and territory using 2026-27 thresholds and rates. Choose a state, enter your total taxable wages including super, and see the tax, the monthly amount and your effective rate across all wages.
Updated 12 November 2026 · Uses 2026-27 figures
Estimate your payroll tax
Choose a state and enter your total taxable wages for the year, including super.
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.
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- Choose the state or territory where your employees work.
- Enter your total taxable wages for the year. Include wages, super contributions, fringe benefits and payments to certain contractors.
- Read the estimated payroll tax per year and per month, the threshold and your effective rate.
- If you employ in more than one state, run each state separately. In practice the threshold is shared based on your Australia-wide wages.
Payroll tax rates and thresholds 2026-27
Payroll tax is a state tax on wages. Each state sets its own threshold and rate, and you only pay once your total wages pass the threshold. These are the main settings for 2026-27:
| State | Annual threshold | Main rate | Notes |
|---|---|---|---|
| NSW | $1,200,000 | 5.45% | Unchanged from 2025-26 |
| VIC | $1,000,000 | 4.85% | Threshold reduces between $3m and $5m. Surcharges above $10m |
| QLD | $1,300,000 | 4.75% (4.95% above $6.5m) | Deduction reduces by $1 per $7, nil at $10.4m |
| WA | $1,000,000 | 5.5% | Threshold diminishes to nil at $7.5m |
| SA | $1,500,000 | 4.95% | Sliding rate between $1.5m and $1.7m, $600,000 deduction |
| TAS | $1,250,000 | 4% to $2m, 6.1% above | Two-tier rate |
| ACT | $1,750,000 | 6.75% (groups up to $20m) | Threshold cut from $2m on 1 July 2026, tiered rates above $20m |
| NT | $2,500,000 | 5.5% | Deduction reduces by $1 per $2. 6.5% for groups with $100m+ |
How payroll tax is calculated
The basic formula is the same everywhere: taxable wages minus the deduction (the threshold), multiplied by the rate. The differences are in how the deduction works for larger employers. In Victoria, Queensland, Western Australia and the Northern Territory the deduction shrinks as wages rise, so a large employer pays tax on all of its wages. South Australia uses a sliding rate between $1.5 million and $1.7 million.
Taxable wages are broader than salary. They generally include super contributions, allowances, bonuses, commissions, fringe benefits, termination payments and some payments to contractors under each state's contractor provisions. Employment agency arrangements are also covered: in a labour hire arrangement the agency pays payroll tax on the wages of the workers it places.
Worked example
A business pays $2,400,000 a year in taxable wages, including super, all in one state.
In NSW the tax is ($2,400,000 minus $1,200,000) × 5.45% = $65,400 a year, or $5,450 a month. The effective rate across all wages is 2.7%.
The same payroll gives a different bill in each state:
| State | Tax on $2.4m of wages |
|---|---|
| NSW | $65,400 |
| VIC | $67,900 |
| QLD | $59,714 |
| WA | $88,846 |
| SA | $89,100 |
| TAS | $54,400 |
| ACT | $43,875 |
| NT | $0 (below the $2.5m threshold) |
When is payroll tax due?
Once you pass the threshold you must register with the state revenue office, usually within 7 days of the end of the month you passed it. Returns and payments are generally due monthly, by the 7th day of the following month, with an annual reconciliation after 30 June. Due dates and registration triggers vary, so check your state's revenue office.
Grouping
Related businesses, such as companies with common owners or that share employees, can be grouped. A group shares a single threshold, which stops a business avoiding payroll tax by splitting into smaller entities.
What the calculator leaves out
This is an estimate for one employer paying all wages in one state. It does not apply Queensland's regional discount or mental health levy, Victoria's mental health and COVID debt surcharges, the ACT tiers above $20 million, or the split threshold for interstate wages. For payroll tax specific to NSW, read our guide to payroll tax in NSW. Payroll tax is one reason the true cost of a hire is more than salary. See the employee cost calculator.
Frequently asked questions
What is payroll tax?
Payroll tax is a state and territory tax on the wages an employer pays. It only applies once total taxable wages pass the threshold set by the state, for example $1.2 million a year in NSW in 2026-27. It is paid by the employer, not taken from employees' pay.
How is payroll tax calculated?
Take your total taxable wages, including super and other taxable payments, subtract the threshold or deduction, and multiply by the state rate. In some states the deduction reduces as wages rise, so larger employers pay tax on all of their wages.
How much is payroll tax in Australia?
Rates range from 4% in Tasmania (on wages up to $2 million) to 6.75% in the ACT for most groups, with higher tiers for very large employers. NSW is 5.45%, Victoria 4.85%, Queensland 4.75%, WA 5.5%, SA 4.95% and the NT 5.5%.
When is payroll tax due?
Most states require monthly returns and payments by the 7th of the following month, plus an annual reconciliation after the end of the financial year. You must register within the time your state sets once your wages pass the threshold.
Is super included in payroll tax?
Yes. Superannuation contributions are taxable wages for payroll tax in every state. That includes the 12% super guarantee and salary sacrificed contributions.
Do labour hire workers count for payroll tax?
Yes. Under the employment agency provisions, the agency that employs and places the worker is liable for payroll tax on their wages. A host business using labour hire does not pay payroll tax on those workers itself, as the cost is built into the charge rate.
What is the payroll tax threshold in NSW?
The NSW payroll tax threshold for 2026-27 is $1,200,000 a year, and the rate is 5.45% of taxable wages above that. For months with 30 days the monthly threshold is $98,630, and it is adjusted for months with 28 or 31 days.
Related calculators
Sources and assumptions
- Revenue NSW: Payroll tax thresholds and rates
- State Revenue Office Victoria: Payroll tax current rates
- Queensland Revenue Office: Payroll tax rates and thresholds
- ACT Revenue Office: About payroll tax
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.