Payroll Tax Calculator

Calculate payroll tax for each state and territory based on your total wages and applicable thresholds.

Data stays on your deviceATO sourced data

Total Annual Taxable Wages

State / Territory

Payroll Tax — NSW

$43,600.00

Effective rate: 2.18%

Total wages$2,000,000.00

Tax-free threshold (NSW)-$1,200,000.00

Taxable amount$800,000.00

Payroll tax @ 5.45%$43,600.00

Monthly$3,633.33

Compare All States

ACT

$0.00

$24,750.00

TAS

$30,000.00

QLD

$33,250.00

NSW

$43,600.00

VIC

$48,500.00

$55,000.00

This is a simplified estimate using flat thresholds. Some states (e.g. NSW, WA) apply diminishing or adjusted thresholds for wages above certain levels, and interstate apportionment rules may apply for multi-state employers. For precise obligations, consult your state revenue office.

State Rates & Thresholds

NSW$1,200,000.00 threshold5.45%

VIC$1,000,000.00 threshold4.85%

QLD$1,300,000.00 threshold4.75%

WA$1,000,000.00 threshold5.50%

SA$1,500,000.00 threshold4.95%

TAS$1,250,000.00 threshold4.00%

ACT$2,000,000.00 threshold6.85%

NT$2,500,000.00 threshold5.50%

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

Frequently Asked Questions

Which state has the lowest payroll tax?

Tasmania has the lowest rate at 4.0%, but the ACT has the highest threshold ($2,000,000) meaning you can have a larger payroll before tax kicks in. The cheapest state depends on your total wages — for smaller payrolls the high-threshold states (ACT, SA, NT) win, while for very large payrolls the low-rate states (TAS, QLD) are cheaper.

Do contractors count towards payroll tax?

In many cases, yes. State revenue offices can deem contractor payments as 'wages' for payroll tax purposes if the contractor works primarily for you, uses your tools, or the arrangement resembles employment. The tests vary by state. Genuine independent contractors with multiple clients are generally excluded.

What is Payroll Tax?

Payroll tax is a state government tax on the wages paid by employers. Each state has different thresholds (below which no tax is payable) and different rates, making it one of the more complex business taxes in Australia.

How this calculator works

Enter your total annual taxable wages and select your state. The calculator applies the state-specific threshold (ranging from $900,000 in VIC to $2,000,000 in the ACT) and rate (4% in TAS to 6.85% in ACT). Only wages above the threshold are taxed. The state comparison view shows how much payroll tax you'd pay in every state for the same wage bill — useful for businesses considering where to base operations or hire. The effective rate shows payroll tax as a percentage of your total wages, not just the taxable portion.

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.

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