Western Australia payroll tax for 2026-27: 5.5% above a $1,000,000 threshold. Enter your annual wages to estimate the tax.
How WA payroll tax is worked out
- 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%.
WA payroll tax by wage bill
| Annual wages | Deduction | Rate | Payroll tax | Effective rate |
|---|---|---|---|---|
| $500,000 | $1,000,000 | 5.5% | $0 | 0.00% |
| $1,000,000 | $1,000,000 | 5.5% | $0 | 0.00% |
| $1,500,000 | $923,077 | 5.5% | $31,731 | 2.12% |
| $2,000,000 | $846,154 | 5.5% | $63,462 | 3.17% |
| $3,000,000 | $692,308 | 5.5% | $126,923 | 4.23% |
| $5,000,000 | $384,615 | 5.5% | $253,846 | 5.08% |
| $10,000,000 | $0 | 5.5% | $550,000 | 5.50% |
| $50,000,000 | $0 | 5.5% | $2,750,000 | 5.50% |
A single employer, not grouped, paying all wages in WA for the full year.
Common questions
What is the payroll tax rate in WA?
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%.
What is the WA payroll tax threshold?
$1,000,000 a year in 2026-27. Employers must register when Australian taxable wages in a month exceed $83,333.
Does the calculator handle grouping and interstate wages?
No. It assumes one employer, not grouped, paying all its wages in the state for the full year. Grouped or interstate employers share the threshold in proportion to their wages in each state; check the revenue office's rules or use its calculator.
Is payroll tax paid by employees?
No. It's a state tax on employers' wage bills; it doesn't come out of employees' pay.
Compare every state with the payroll tax calculator for Australia. Other states: NSW · VIC · QLD · SA · TAS · ACT · NT.
Source: WA Department of Treasury and Finance, Calculate payroll tax. Checked 2026-10-22. General information only, not tax advice.