Payroll Tax by State — Thresholds, Rates & Registration
Payroll tax is a state and territory tax on wages paid by employers above a threshold. Each jurisdiction sets its own rate and threshold. Businesses operating across state lines must register in each state where they have employees and apportion their threshold accordingly. The key facts below are stored 2025–26 figures from the 10 March 2026 editorial pass — not a 8 September 2026 re-check of every 2026–27 revenue-office table. Confirm current thresholds and surcharges with the relevant state or territory office before you lodge.
Overview
Payroll tax is a state and territory tax on wages paid by employers above a threshold. Each jurisdiction sets its own rate and threshold. Businesses operating across state lines must register in each state where they have employees and apportion their threshold accordingly. The key facts below are stored 2025–26 figures from the 10 March 2026 editorial pass — not a 8 September 2026 re-check of every 2026–27 revenue-office table. Confirm current thresholds and surcharges with the relevant state or territory office before you lodge.
Key Facts
- NSW stored 2025–26: 5.45% on wages over $1.2M annually (still the NSW published annual threshold on payrolltax.gov.au 2 Sep 2026). Confirm current figures with Revenue NSW.
- VIC stored $900K / 0.5% mental-health line is not a current SRO figure. Confirm the current deduction, rate and surcharge tables with State Revenue Office Victoria. This article’s last_verified remains 2026-03-10 and is not a VIC return.
- QLD stored 2025-26: 4.75% on wages over $1.3M, plus a stored higher-wage line that is not a current QRO return. Confirm current rates, deductions and the mental health levy with QRO.
- WA stored 2025-26: 5.5% on wages over $1M annually. Confirm current rates, taper and grouping with RevenueWA.
- SA, TAS, NT and ACT stored rate lines are not listed here. Confirm current figures with those revenue offices. Multi-state employers must register in each state and apportion the tax-free threshold by wages in each jurisdiction.
What You Need to Know
This guide covers the essential compliance requirements that Australian employers need to understand. Non-compliance can result in significant penalties, ATO audits, and reputational damage.
We recommend using purpose-built software that automates compliance reporting. The right software will handle rate changes, deadline reminders, and lodgement with the relevant authorities.
Recommended Software
The following software products handle payroll compliance for Australian businesses: