Free calculator · 2026-27 rates
Payroll tax calculator for Australia (2026-27)
Pick your state and enter your annual wages bill. A NSW business paying A$1.5 million a year in wages, including super, pays A$16,350 in payroll tax: 5.45% on the A$300,000 above the threshold. Hiring one more person on A$75,000 adds A$4,633 a year, so the true cost of that hire is about A$7,534 a month.
2026-27 payroll tax rates and thresholds by state
Each figure below comes from the state or territory revenue office for the year from 1 July 2026, checked in November 2026. Thresholds are annual and based on Australia-wide wages.
| State | Threshold | Rate | How the deduction works |
|---|---|---|---|
| NSW | A$1.2 million | 5.45% | Flat A$1.2 million deduction. Unchanged from 2025-26. Revenue NSW |
| VIC | A$1 million | 4.85% | Deduction phases out between A$3 million and A$5 million (50% phase-out rate). Surcharges of 1% on wages over A$10 million and another 1% over A$100 million. Regional employers pay 1.2125%. State Revenue Office Victoria |
| QLD | A$1.3 million | 4.75% (4.95% over A$6.5 million) | Deduction falls A$1 for every A$7 over A$1.3 million, reaching zero at A$10.4 million. Mental health levy of 0.25% over A$10 million, plus 0.5% over A$100 million. Regional employers may get a 1% discount on the rate until 30 June 2030. Queensland Revenue Office |
| WA | A$1 million | 5.5% | Deduction tapers between A$1 million and A$7.5 million (A$2 less for every A$13 over A$1 million). WA Department of Finance |
| SA | A$1.5 million | Nil to A$1.5 million, sliding from 0% to 4.95% up to A$1.7 million, then 4.95% | A$600,000 deduction. The rate is set by total Australian wages. RevenueSA |
| TAS | A$1.25 million | 4% from A$1.25 million to A$2 million, 6.1% above | Two tiers. Only wages above each threshold are taxed at that tier's rate. State Revenue Office Tasmania |
| ACT | A$1.75 million (was A$2 million) | 6.75% (wages to A$20 million) | New from 1 July 2026. Full threshold deducted. 6.85% from A$20 to 50 million, 7.35% to A$100 million, 7.85% to A$150 million, 8.75% above. ACT Revenue Office |
| NT | A$2.5 million | 5.5% (6.5% at A$100 million or more) | Deduction falls A$1 for every A$2 over A$2.5 million, reaching zero at A$7.5 million. The 6.5% rate is new from 1 July 2026. NT Territory Revenue Office |
How the calculator works
Payroll tax
- Your bill. We apply your state's 2026-27 rate, threshold and any deduction phase-out to your annual Australian wages.
- The new hire. We work out the tax again with the hire's salary, super and leave loading added, and show the difference. If you're under the threshold the extra tax is often A$0, but a hire can push you over it.
- Surcharges and levies. These are included for Victoria (over A$10 million) and Queensland's mental health levy (over A$10 million).
The true cost of an employee
- Super at 12% of salary (ATO).
- Leave loading on 4 weeks' annual leave. Paid annual and personal leave are already inside the salary.
- Workers comp as a percentage of salary, plus equipment and desk costs.
- The offshore hire uses our salary guide and fees: 13th-month pay in the Philippines, or 15% EPF and ETF in Sri Lanka, plus the plan fee. These are the same figures as our employee cost calculator.
Payroll tax on a A$2 million wages bill, by state
The same A$2 million in annual Australian wages, all paid in one state, for 2026-27. It shows how much thresholds and phase-outs vary.
| State | Payroll tax a year |
|---|---|
| New South Wales | A$43,600 |
| Victoria | A$48,500 |
| Queensland | A$38,000 |
| Western Australia | A$63,462 |
| South Australia | A$69,300 |
| Tasmania | A$30,000 |
| Australian Capital Territory | A$16,875 |
| Northern Territory | A$0 |
Common questions
How is payroll tax calculated in Australia?
Each state and territory sets its own payroll tax. You add up your total Australian taxable wages for the year, including super, take off your state's threshold or deduction, and multiply what's left by the state's rate. Several states shrink the deduction as wages grow: Victoria, Queensland, WA and the NT. Grouped businesses use the group's combined wages.
What are the payroll tax thresholds for 2026-27?
For 2026-27 the thresholds are: NSW A$1.2 million, Victoria A$1 million, Queensland A$1.3 million, WA A$1 million, SA A$1.5 million, Tasmania A$1.25 million, the ACT A$1.75 million (down from A$2 million on 1 July 2026) and the NT A$2.5 million. Each figure links to its revenue office in the table on this page.
What is the payroll tax rate in Queensland?
In 2026-27 it is 4.75% if your Australian taxable wages are A$6.5 million or less, and 4.95% above that. The threshold is A$1.3 million. The deduction falls by A$1 for every A$7 of wages over A$1.3 million and reaches zero at A$10.4 million. A mental health levy applies above A$10 million (Queensland Revenue Office).
What is the payroll tax rate in WA?
In 2026-27 it is 5.5%, with a A$1 million threshold. The threshold tapers away for employers with Australian wages between A$1 million and A$7.5 million. For example, at A$1.2 million in wages the threshold is A$969,231 (WA Department of Finance).
Is super included in payroll tax?
Yes. Employer super contributions count as taxable wages in every state, along with salary, bonuses, allowances and many contractor payments. The calculator adds 12% super and annual leave loading to the new hire's taxable wages.
Do I pay payroll tax on offshore staff?
Generally not for staff who work overseas full-time. Under the nexus rules that every state shares, wages for work done outside Australia are only taxable when the overseas stint is shorter than six months (ACT Revenue Office). On Managed for You, Elephant Teams employs your team member, so you pay a fee, not wages. Check your own setup with your accountant.
How accurate is this calculator?
It applies each revenue office's published 2026-27 rates and thresholds. It assumes all your wages are paid in the state you pick, for the full year. It doesn't apply regional discounts, exemptions, apprentice rebates or interstate splits. In SA, the rate between A$1.5 and 1.7 million is a straight-line estimate, and RevenueSA confirms the exact rate. Use it for planning, and check your return with your accountant or revenue office.
Want to cut the cost of your next hire?
A full-time offshore team member in Sri Lanka or the Philippines has no Australian payroll tax, super or workers comp. Book a free consultation and we'll price your role exactly.