About the Australia Payroll Tax Calculator
This payroll tax calculator estimates the annual state payroll tax an Australian employer pays for the 2026-27 financial year (1 July 2026 to 30 June 2027). Enter the taxable wages you pay in the state and any wages paid interstate, and it applies the state’s tax-free threshold (deduction), any phase-out of that deduction for larger employers, and the state rate.
Built-in rules cover New South Wales (5.45% above a $1.2 million threshold), Victoria (4.85%, or 1.2125% for eligible regional employers, above a $1 million threshold that phases out between $3 million and $5 million of Australian wages) and Queensland (4.75%, or 4.95% above $6.5 million of Australian wages, with a $1.3 million deduction that reduces by $1 for every $7 above the threshold and reaches zero at $10.4 million). For South Australia, Western Australia, Tasmania, the ACT or the Northern Territory, choose “Other state / custom” and enter the threshold and rate published by that state’s revenue office.
Payroll tax thresholds are based on total Australian wages of the employer or group, and an employer paying wages in several states gets only a share of each state’s deduction in proportion to its wages there. The calculator apportions the deduction that way. It does not include the Victorian mental health and COVID debt surcharges or the Queensland mental health levy, which apply only above $10 million of wages, or Queensland’s 1% regional employer discount (available until 30 June 2030), and it assumes the employer is liable for the full year. Confirm your obligations with the state revenue office.
With the default inputs, the payroll tax payable (year) is $70,850.00. Change any value above to recalculate instantly.
How to use the australia payroll tax calculator
- 1Choose the state where the wages are paid, or “Other state / custom”.
- 2Enter annual taxable wages paid in that state, including super and fringe benefits.
- 3Enter wages paid in other states by you or your group, if any.
- 4For other states, enter the threshold and rate from that state’s revenue office.
- 5Read the payroll tax payable and compare states in the chart.
Formula and method
First the full-year deduction D is set from total Australian (grouped) wages: NSW $1.2m; Victoria $1m, reduced by 50% of wages above $3m (zero from $5m); Queensland $1.3m, reduced by $1 for every $7 above $1.3m (zero at $10.4m). The deduction is then apportioned by the share of Australian wages paid in the state, and tax is charged at the state rate on wages above it.
Rates are 5.45% in NSW, 4.85% in Victoria (1.2125% for eligible regional Victorian employers) and in Queensland 4.75% for employers or groups paying $6.5m or less in Australian wages and 4.95% above that. Each state calculates the interstate share in its own way and reconciles at year end; treat interstate results as an estimate.
- D
- Full annual deduction (tax-free threshold) for the state
- rate
- State payroll tax rate
Worked examples
NSW employer with $2.5m wages
All wages are in NSW, so the full $1.2m threshold applies. Tax is 5.45% × ($2,500,000 − $1,200,000) = $70,850, about 2.8% of the wage bill.
Victorian employer with $4m wages
Wages of $4m are $1m above the $3m phase-out point, so the $1m deduction is cut by 50% × $1m to $500,000. Tax is 4.85% × $3,500,000 = $169,750.
Queensland employer with $3m wages
The $1.3m deduction reduces by $1,700,000 ÷ 7 = $242,857, leaving $1,057,143. Wages taxed are $1,942,857, and at 4.75% the payroll tax is about $92,286.
NSW wages with an equal amount paid interstate
Half of the $3m Australian wage bill is paid in NSW, so the employer receives half the NSW threshold: $600,000. Tax is 5.45% × ($1,500,000 − $600,000) = $49,050.
Frequently asked questions
What is the payroll tax threshold in NSW for 2026-27?+
Revenue NSW lists an annual tax-free threshold of $1.2 million and a rate of 5.45% for 1 July 2026 to 30 June 2027. The threshold is based on total Australian wages, so employers with interstate wages receive a proportional share.
What is the Victorian payroll tax threshold?+
From 1 July 2025 Victoria’s tax-free threshold is $1 million a year with a 4.85% rate (1.2125% for regional employers). The deduction phases out at 50% for Australian wages between $3 million and $5 million, so employers paying $5 million or more get no deduction.
How does Queensland payroll tax work?+
Queensland charges 4.75% for employers or groups paying $6.5 million or less in Australian taxable wages and 4.95% above that. The $1.3 million deduction reduces by $1 for every $7 above $1.3 million and is fully phased out at $10.4 million.
What counts as taxable wages for payroll tax?+
Taxable wages generally include gross salary and wages (including leave), allowances, bonuses, commissions, directors’ fees, employer superannuation contributions, fringe benefits, termination payments, some contractor payments, and shares and options.
Do I pay payroll tax if I have staff in several states?+
Yes, each state taxes the wages paid there, but your eligibility for each state’s threshold is based on total Australian wages and the deduction is shared in proportion to the wages paid in each state. You may need to register in a state even if your wages there are small.
What is payroll tax grouping?+
Related businesses — for example companies under common control or sharing employees — can be grouped and must share a single threshold. Grouping stops businesses from splitting into several entities to claim the tax-free threshold more than once.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.