Who pays payroll tax?

Employers pay it, not employees. It is a state tax on the wages you pay.

Do I need to register?

If your annual taxable wages in a state exceed that state's threshold, you generally must register and lodge returns. Check your state revenue office.

Is this estimate exact?

No. We use the main threshold and rate(s). Concessions, surcharges and exemptions can change the amount. Always confirm with your state revenue office.

Payroll Tax Estimator

Estimate payroll tax by state or territory (for employers)

Payroll tax is state-based in Australia. Enter your total annual Australian taxable wages for the state to get an indicative estimate. Always confirm with your state revenue office — regional concessions, surcharges and exemptions may apply.

Inputs

Select state and enter annual taxable wages

State or territory

Annual taxable wages ($)

Total Australian wages liable for payroll tax in this state (e.g. wages paid in or attributed to this state).

Estimate

New South Wales — threshold $1,200,000/year

Estimated annual payroll tax

$16,350

Approx. monthly

$1,363

Taxable wages above threshold: $300,000 at 5.45%.

This is indicative only. Confirm with your state revenue office. Regional employer concessions, mental health or other surcharges, and exemptions are not included.

How to Use This Calculator

1Select the state or territory where you employ (or where wages are liable).
2Enter your total annual Australian taxable wages for that state.
3Use the estimate as a guide; lodge and pay through your state revenue office.

What is payroll tax?

Payroll tax is a state and territory tax on wages paid by employers. Each jurisdiction has its own threshold (annual wage bill above which tax applies) and rate(s).

If your total Australian taxable wages in a state exceed the threshold, you must register and pay payroll tax in that state. Some states have regional concessions or higher tiers for very large wage bills.

By state

Thresholds: Annual wage bill above which payroll tax applies; varies from $1m to $2m depending on state.
Rates: Typically between 4% and 6.85%; some states have two tiers (e.g. QLD, TAS).
Regional employers: VIC and QLD offer concessions for regional employers; not included in this estimator.
Surcharges: ACT and QLD may apply surcharges on very large Australia-wide wages; confirm with revenue office.

For employers

•Check your state revenue office for registration, lodgement dates and exact thresholds.
•Taxable wages usually include salaries, allowances, super, some contractor payments and fringe benefits.
•If you employ in more than one state, you may need to apportion wages and register in each.

Frequently Asked Questions

Official Sources

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

Rates and thresholds last updated for the 2024–25 financial year.

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Payroll Tax Estimator

Estimate payroll tax by state or territory (for employers)