Free Australian payroll tax calculator for FY 2025-26. Choose your state or territory (NSW, VIC, QLD, SA, WA, TAS, ACT, NT) and enter your total annual Australian taxable wages to estimate the payroll tax payable. Uses each state revenue office's current tax-free threshold and rate, shows the threshold and rate applied, and explains grouping and interstate apportionment for multi-state employers.
Where you pay wages, each jurisdiction has its own threshold and rate.
Includes salaries, super, bonuses, directors' fees, grossed-up fringe benefits and certain contractor payments.
Payroll tax is a state tax: thresholds and rates are set by each state revenue office and change with each state budget. This tool uses the FY 2025-26 figures for the common single-state, ungrouped, full-year case. Grouped or interstate employers share/apportion the threshold, so their bill differs.
Payroll Tax Payable
$0.00
$0 per month (estimate)
Effective Rate
0%
on $0 of wages
Threshold
$1,200,000
Rate
5.45%
Revenue NSW: Flat $1.2m threshold and 5.45% rate.
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Payroll tax is a state and territory tax on the total Australian taxable wages an employer pays in a year. It is self-assessed and lodged with the relevant state revenue office — it is not a federal tax and the ATO does not administer it. You only pay payroll tax once your total Australian wages exceed the tax-free threshold for your state, and the tax applies only to the wages above that threshold.
For the common single-state, ungrouped employer the maths is straightforward:
Payroll tax = (total annual Australian taxable wages − state threshold) × state rate
If your wages are below the threshold, the result is nil. Each jurisdiction sets its own threshold and rate, so the same wage bill produces a different bill in different states.
| State / Territory | Tax-free threshold | Headline rate |
|---|---|---|
| NSW | $1,200,000 | 5.45% |
| VIC | $1,000,000 | 4.85% |
| QLD | $1,300,000 | 4.75% |
| SA | $1,500,000 | 4.95% |
| WA | $1,000,000 | 5.50% |
| TAS | $1,250,000 | 4.00% |
| ACT | $2,000,000 | 6.85% |
| NT | $2,500,000 | 5.50% |
Thresholds and rates are set by each state revenue office and change with each state budget — always confirm the current figure with your revenue office before lodging.
An employer paying $1,500,000 of NSW taxable wages in FY 2025-26 is $300,000 over the $1,200,000 threshold. Payroll tax = $300,000 × 5.45% = $16,350 for the year. An employer paying $1,000,000 of NSW wages is below the threshold and pays nil.
Related businesses can be ‘grouped’ and made to share a single threshold, and employers who pay wages in more than one state apportion the threshold by their share of total Australian wages. Some states (VIC, QLD, SA, WA, NT) also taper or phase out the threshold for larger wage bills, and TAS, QLD and the ACT apply higher marginal rates above an upper tier. This calculator covers the single-state, ungrouped, full-year case; for grouped or interstate employers, use your state revenue office’s calculator or speak to a registered tax agent.
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. Only the wages above the threshold are taxed, and 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 2025-26, 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.
Sources & methodology
This calculator applies each state and territory's FY 2025-26 payroll-tax tax-free threshold and headline rate: payroll tax = max(0, total annual Australian taxable wages − the state threshold) × the state rate. It covers the common single-state, ungrouped, full-year case. Grouping, interstate apportionment, deduction tapers, marginal upper tiers (TAS, QLD, ACT) and large-employer surcharges are noted but not modelled. Figures are computed in your browser, nothing you enter is stored or sent to a server.
Authoritative sources
Reviewed by Bishal Shrestha — Founder of OneBookPlus, 10+ years building tools with Australian tax-agent and BAS-agent practices. Last reviewed and updated: June 2026.
Disclaimer: This calculator produces estimates only and is not tax advice. Tax outcomes depend on your individual circumstances. For decisions that affect your tax position, consult a registered tax agent or the ATO directly.
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