NSW Payroll Tax Calculator
Calculate payroll tax in NSW. Threshold is $1,200,000 with a rate of 5.45%. Includes the COVID surcharge and regional employer discount.
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?
Do contractors count towards payroll tax?
What is NSW 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.
State Thresholds and Rates (2025-26)
NSW: $1.2M threshold, 5.45% rate. VIC: $1.0M, 4.85% (with 0.5% surcharge >$10M, 1% >$100M). QLD: $1.3M, 4.75% (1% discount for regional). WA: $1.0M, 5.5%. SA: $1.5M, 4.95%. TAS: $1.25M, 4% (lowest in AU). ACT: $2.0M, 6.85% (highest threshold AND highest rate). NT: $2.5M, 5.5%.
What Counts as 'Wages'
Salary, wages, allowances, bonuses, commissions, fringe benefits (grossed up), employer super contributions, termination payments, contractor payments (if deemed employees), directors fees, eligible termination payments, and apprentice/trainee wages (often with discounts). Payments to genuine sub-contractors with ABN and multiple clients are generally excluded — but watch the 'deemed employee' tests.
Grouping Rules
Related businesses (same owners, shared employees, common control) are 'grouped' and treated as ONE employer for threshold purposes. Only ONE threshold applies across the entire group. This catches structured businesses trying to split wages below threshold. Family-related businesses, parent-subsidiary chains, and businesses with shared HR functions are commonly grouped.
Inter-State Operations
If you have wages in multiple states, you pay payroll tax in each state where wages exceed that state's threshold. There's NO single national threshold across states. A NSW-based business with branches in VIC and QLD might pay payroll tax in all three states. Wages are apportioned by where the work is performed (employee's primary place of work).
Common Concessions
REGIONAL: QLD 1% discount, WA up to 1% off, SA 50% rebate for regional employers. APPRENTICES: most states exempt 100% of apprentice/trainee wages. SMALL BUSINESS: NSW offers concession for newly-eligible businesses; SA exempts under $1.5M. CHARITIES: most states fully exempt eligible charities and not-for-profits with DGR status.
Filing and Payments
Most states require MONTHLY lodgement (within 7 days of month end) for businesses with annual liability over $20k-$30k. Smaller liabilities lodge quarterly or annually. Annual reconciliation due 21 July. Penalties for late lodgement: $100-$500 per month plus interest. Most states have online portals; some require software-generated returns (e.g. NSW).
Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).
Official Sources
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.