Australian Payroll Tax Calculator

Payroll tax is a state/territory tax on the total Australian taxable wages you pay above a tax-free threshold. The common single-state calculation is: payroll tax = (total annual taxable wages − the state threshold) × the state rate. That holds while your wages sit below your state's phase-out point. Above it, VIC, QLD, SA, WA and NT shrink the tax-free threshold as wages rise until it reaches nil, and TAS, QLD and the ACT add a higher rate on the top slice, so the taxable figure is larger than wages minus the headline threshold and a flat sum can understate the bill by up to a third. If your total wages are below the threshold you pay no payroll tax. Each state and territory sets its own threshold and rate, so the figure changes depending on where you employ.

For 2026-27, New South Wales has a payroll tax threshold of $1,200,000 and a rate of 5.45%. So an employer with $1,500,000 of NSW taxable wages pays 5.45% on the $300,000 above the threshold, which is $16,350 for the year. Businesses with total Australian wages below $1.2m generally pay no NSW payroll tax.

From 1 July 2025, Victoria's payroll tax threshold is $1,000,000 and the general rate is 4.85% (regional employers pay a concessional 1.2125%). Victoria's tax-free threshold (the deduction) progressively phases out for employers with Australian wages between $3 million and $5 million, and large employers also pay Mental Health & Wellbeing and COVID-debt surcharges.

Taxable wages generally include salaries and wages, most superannuation contributions, bonuses, commissions, allowances, directors' fees, the grossed-up value of most fringe benefits, termination payments, and certain contractor payments. Some payments are exempt, for example, genuine reimbursements, paid parental leave (in some states), and wages for certain apprentices/trainees. Check your state revenue office for the exact inclusions, as they vary by jurisdiction.

If businesses are related, through common ownership, shared employees, or being part of the same corporate group, the revenue offices can 'group' them. A group shares a single tax-free threshold rather than each member claiming its own, and the wages of all members are added together to test against the threshold. This calculator assumes a single, ungrouped employer; if you are part of a group, your share of the threshold will be smaller.

If you pay wages in multiple states or territories, the tax-free threshold in each is apportioned based on your share of total Australian wages, and you lodge a return in each state where you pay wages above the apportioned threshold. This calculator covers the common single-state case; for interstate or grouped employers, use your state revenue office's calculator or speak to a registered tax agent, as the apportioned threshold is smaller than the full amount shown here.