How much payroll tax does your business owe?
Estimate your liability with current FY2026 thresholds and rates for every Australian state and territory — including multi-state apportionment, QLD regional discounts and higher-rate tiers.
Takes ~2 minutes · FY2026 rates · Figures stay in your browser until you choose to share them
By State
All 8 jurisdictions
Apportionment
Multi-state threshold
Effective Rate
What you actually pay
Comparison
Every state, side by side
About this tool
Payroll Tax Calculator
Payroll tax is one of the more confusing obligations an Australian employer faces, largely because it isn't a single national tax at all. Each state and territory sets its own threshold, its own rate and its own rules, and you only start paying once your total taxable wages cross the threshold in the jurisdiction where your staff work. For a business operating in one state that's manageable; for one with people across several, it becomes a genuine headache, because the tax-free threshold gets apportioned across jurisdictions and grouped entities have to share a single threshold. This tool exists to answer the question owners actually ask — "does my business owe payroll tax, and roughly how much?" — without needing to decode eight different revenue-office websites first.
How it works
You choose your state or territory and enter two figures: your total annual Australian taxable wages, and the portion of those wages paid in the selected state. The tool applies that state's current threshold and rate, apportioning the tax-free threshold by your state-to-total wages ratio for multi-state employers, and returns an estimated annual liability along with monthly and quarterly figures and an effective rate. It accounts for jurisdiction-specific mechanics where they exist — for example a regional discount and a higher rate tier above a set wage level in Queensland — and it flags graduated-rate jurisdictions (South Australia and Tasmania) as indicative, because their variable-rate schedules phase the rate in and only the official schedule sets the exact amount. It also shows a side-by-side comparison of the estimate across every state and territory, so you can see how the same wage bill would be taxed elsewhere. All figures use published current-year rates and thresholds, and your inputs stay in your browser until you choose to share them.
Who it’s for
Australian business owners, finance managers and bookkeepers who want a quick, plain-English estimate of their payroll-tax exposure — especially those approaching a threshold, employing across multiple states, or operating as part of a group.
- Payroll tax is state-based, not federal — each Australian state and territory sets its own threshold and rate, so where your staff work determines what you owe.
- Multi-state employers have their tax-free threshold apportioned across jurisdictions, and grouped (related) entities must share a single threshold rather than each claiming their own.
- The estimate reflects jurisdiction-specific rules — regional discounts, higher-rate tiers and graduated schedules — but grouping provisions, exemptions and surcharges mean your accountant confirms the formal figure.
Frequently asked questions
Do I have to pay payroll tax at all?
Only if your total taxable wages exceed the threshold in the state or territory where your staff work — below that threshold, no payroll tax is payable. Because each jurisdiction sets a different threshold, a wage bill that's tax-free in one state can be liable in another. The tool tells you whether you're above or below the apportioned threshold for your chosen jurisdiction, which is the first thing to establish before worrying about the rate.
How does payroll tax work if I employ people in more than one state?
You don't get a full threshold in every state. Your tax-free threshold is apportioned according to the share of your total wages paid in each jurisdiction, and you lodge separately with each state's revenue office for the wages paid there. The tool models this by asking for both your total Australian wages and the portion in the selected state, then apportioning the threshold accordingly — but multi-state payroll is exactly where professional advice pays off.
What counts as taxable wages?
It's broader than just salaries. Taxable wages generally include gross wages, superannuation, allowances, fringe benefits, director fees and certain contractor payments, while exempt wages and interstate wages are excluded. Getting this figure right matters, because it's the number the threshold and rate are applied to. The tool prompts you for total taxable wages on this basis, but your bookkeeper or accountant should confirm which components apply to your business.