Payroll tax for every Australian state and territory in 2026-27, from each revenue office's rates, thresholds and formulas. Pick a state and enter your annual wage bill.
The same wages in every state
| State | Payroll tax a year | Effective rate |
|---|
For the wages entered above, a single employer paying all wages in that state for the full year (metropolitan rates).
Payroll tax rates and thresholds 2026-27
| State | Threshold | Rate | Tax on $1,000,000 | Tax on $2,000,000 | Tax on $5,000,000 | Tax on $10,000,000 |
|---|---|---|---|---|---|---|
| NSW | $1,200,000 | 5.45% | $0 | $43,600 | $207,100 | $479,600 |
| VIC | $1,000,000 | 4.85% | $0 | $48,500 | $242,500 | $485,000 |
| QLD | $1,300,000 | 4.75% | $0 | $38,000 | $200,857 | $492,171 |
| WA | $1,000,000 | 5.5% | $0 | $63,462 | $253,846 | $550,000 |
| SA | $1,500,000 | 4.95% | $0 | $69,300 | $217,800 | $465,300 |
| TAS | $1,250,000 | 4% / 6.1% | $0 | $30,000 | $213,000 | $518,000 |
| ACT | $1,750,000 | 6.75% | $0 | $16,875 | $219,375 | $556,875 |
| NT | $2,500,000 | 5.5% | $0 | $0 | $206,250 | $550,000 |
How each state works it out
New South Wales
- The first $1,200,000 of wages a year is tax-free (the deduction).
- Wages above the deduction are taxed at 5.45%.
Victoria
- The first $1,000,000 of wages a year is tax-free (the deduction).
- The deduction shrinks by 50 cents for every dollar of Australian wages above $3,000,000, and is nil from $5,000,000.
- Wages above the deduction are taxed at 4.85%.
- Regional Victorian employers pay 1.2125% instead.
- A surcharge of 1% applies to wages above $10,000,000, plus another 1% above $100,000,000.
Queensland
- The first $1,300,000 of wages a year is tax-free (the deduction).
- The deduction shrinks by $1 for every $7 of Australian wages above $1,300,000, and is nil from $10,400,000.
- The rest is taxed at one rate set by total Australian wages: 4.75% up to $6,500,000; 4.95% above $6,500,000.
- Eligible regional employers get a 1% discount on the rate (to 30 June 2030).
- A mental health levy of 0.25% applies to wages above $10,000,000, plus another 0.5% above $100,000,000.
Western Australia
- The first $1,000,000 of wages a year is tax-free (the deduction).
- The deduction shrinks by $2 for every $13 of Australian wages above $1,000,000, and is nil from $7,500,000.
- Wages above the deduction are taxed at 5.5%.
South Australia
- No payroll tax if annual Australian wages are $1,500,000 or less.
- Above that, a $600,000 deduction comes off wages and the rest is taxed at a rate that rises from 0% at $1,500,000 to 4.95% at $1,700,000, then stays at 4.95%.
Tasmania
- No tax on the first $1,250,000 of wages.
- 4% on wages above $1,250,000 up to $2,000,000.
- 6.1% on wages above $2,000,000.
Australian Capital Territory
- The first $1,750,000 of wages a year is tax-free (the deduction).
- The rest is taxed at one rate set by total Australian wages: 6.75% up to $20,000,000; 6.85% above $20,000,000 up to $50,000,000; 7.35% above $50,000,000 up to $100,000,000; 7.85% above $100,000,000 up to $150,000,000; 8.75% above $150,000,000.
Northern Territory
- The first $2,500,000 of wages a year is tax-free (the deduction).
- The deduction shrinks by $1 for every $2 of Australian wages above $2,500,000, and is nil from $7,500,000.
- The rest is taxed at one rate set by total Australian wages: 5.5% up to $100,000,000; 6.5% at $100,000,000 or more.
Common questions
Which state has the lowest payroll tax?
It depends on the wage bill. At $2 million a year, Northern Territory charges the least ($0) and South Australia the most ($69,300), for an employer paying all its wages in that state.
Who pays payroll tax?
Employers whose total Australian wages are above the state's threshold. It's a state tax on the employer's wage bill and doesn't come out of employees' pay.
What counts as wages for payroll tax?
Salaries and wages, plus most other payments to employees: super contributions, bonuses, commissions, allowances, fringe benefits and some payments to contractors. Each revenue office lists what's taxable.
What if we pay wages in more than one state?
Each state taxes the wages paid there, and the threshold is shared in proportion to the wages in each state. Grouped businesses share one threshold. This calculator assumes all wages are paid in one state.
Is payroll tax the same as PAYG withholding?
No. PAYG withholding is income tax taken from each employee's pay for the ATO. See the tax withheld calculator.
Sources: NSW · VIC · QLD · WA · SA · TAS · ACT · NT. Checked 2026-10-22. General information only, not tax advice.