Australian Payroll Tax Calculator
Calculate payroll tax for any state or territory. Select your jurisdiction below — thresholds and rates update automatically for the 2025–26 Financial Year.
| Wages bill | — |
| Tax-free threshold | — |
| Taxable amount | — |
| Rate | — |
| Effective rate (on wages) | — |
How payroll tax works in Australia
Payroll tax is a state and territory tax on wages paid by employers. There is no federal payroll tax — instead, each of the eight Australian jurisdictions sets its own tax-free threshold (the wages bill below which no tax is payable) and its own rate.
The basic calculation is straightforward: if your annual wages bill exceeds the threshold, you pay the state's headline rate on the amount above. For example, NSW has a $1.2M threshold and 5.45% rate, so a business with $1.5M in NSW wages pays 5.45% on $300k = $16,350.
What counts as "wages"?
Taxable wages include salaries, bonuses, commissions, fringe benefits, employer superannuation contributions (including the Superannuation Guarantee), and most allowances. Genuine reimbursements and certain employee terminations are excluded. Each state has its own exclusion list — check your jurisdiction's revenue office for the definitive list.
Operating in multiple states
If you employ across more than one state, grouping provisions apply. Your total national wages determine whether you exceed any threshold, but only wages paid in that state are taxed at that state's rate. The interaction between thresholds and group structures can get complex — most multi-state employers benefit from professional advice.
When to register
Most states require registration in the month your monthly wages first exceed the monthly threshold (one-twelfth of the annual). Registration is online through each state's revenue office. Late registration attracts penalties and back-payments with interest.