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Australia State Payroll Tax Calculator

Estimate the payroll tax an employer owes on Australian wages. Uses each state and territory's 2026-27 tax-free threshold and rate.

What is this tool?

Payroll tax is a state and territory tax on the wages employers pay. Each jurisdiction has a tax-free threshold; once total Australian wages exceed it, the employer pays tax on the amount above the threshold at that state's rate. Some states apply lower initial rates, but this tool uses the standard rate above the threshold.

How it works

Choose your state or territory and enter your total annual Australian wages. The tool shows the threshold, the taxable amount above it and the payroll tax at the state rate.

2026-27 state thresholds and rates

Payroll tax only applies above each jurisdiction's threshold. Select a state above, or compare the standard rates below.

State / territoryThresholdRate
NSW โ€” New South Wales$1,200,0005.45%
VIC โ€” Victoria$1,000,0004.85%
QLD โ€” Queensland$1,300,0004.75%
WA โ€” Western Australia$1,000,0005.50%
SA โ€” South Australia$1,500,0004.95%
TAS โ€” Tasmania$1,250,0004.00%
ACT โ€” Australian Capital Territory$2,000,0006.85%
NT โ€” Northern Territory$2,500,0005.50%

How it is worked out

Payroll tax = (total Australian wages โˆ’ threshold) ร— rate, once wages are above the threshold. Some states reduce the threshold as wages rise (WA, QLD, SA), charge a higher rate above a second band (TAS 6.1% above $2M, NT 6.5% at $100M+), or add surcharges (ACT, VIC); Victoria's regional employers pay 1.2125%. This tool shows each state's standard rate for a quick comparison.

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How to use

  1. Pick your state or territory.
  2. Enter annual Australian wages.
  3. Press Calculate for the payroll tax.

Frequently Asked Questions

Who pays it?

Employers pay payroll tax when their total Australian wages pass the state threshold. Grouped entities are assessed together.

Is it the same everywhere?

No. Each state and territory sets its own threshold and rate, so the same wages can owe very different tax depending on location.

Are all wages included?

Generally yes โ€” most payments to employees count, though some benefits and contractor payments have specific rules.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Tips & Advice

This uses the standard (top) rate above the threshold. Some states start at a lower rate, so a real assessment may be a little lower for wages just above the threshold.

Related Tools

Sources & References

Last reviewed: September 2026.

  1. Revenue NSW – Payroll tax.
  2. State Revenue Office Victoria – Payroll tax.
  3. Queensland Revenue Office – Payroll tax.

Limitations

Applies each jurisdictionโ€™s 2026-27 tax-free threshold and headline rate to total Australian taxable wages. It does not model the grouping provisions, the deduction of interstate wages, the surcharges that apply above a set level (such as the NSW and Victorian mental health and COVID-19 debt levies), apprentice and trainee rebates, exempt wages, or the lower regional rates in some states. Payroll tax is self-assessed; confirm your liability with the relevant state revenue office.

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