Cross State Payroll

NSW payroll tax calculator

NSW payroll tax applies at 5.45% on wages above an annual threshold of $1,200,000. If NSW is the only state you pay wages in, that threshold is straightforward. If you also pay wages in VIC, QLD or elsewhere, the threshold you actually get is smaller than the full amount — enter all your state wages below and this calculator does the apportionment for you.

Wages you paid this financial year

Total gross wages, per state, before any deductions.

WA, SA, TAS, ACT and NT wages count toward your total Australian wages — enter them as “elsewhere”. We don’t yet calculate a separate liability for those states.

Employment period
Grouping and contractors

Estimated payroll tax

Rates last updated:

Enter the wages you paid in each state to see an estimated payroll tax figure for NSW, VIC and QLD side by side.

How NSW payroll tax works

Payroll tax is a self-assessed state tax on wages you pay employees (and, in some cases, contractors). If your business, or your group of related businesses, pays more than the threshold in wages across Australia in a financial year, you need to register with Revenue NSW and lodge returns, usually monthly with an annual reconciliation.

The threshold is not a discount on your whole wage bill — it is a tax-free amount. Only wages above the threshold are taxed, at 5.45%. A business with exactly $1,200,000 in NSW wages and no other state wages pays no NSW payroll tax at all.

What changes if you pay wages in more than one state

The full $1,200,000 threshold assumes NSW is the only state you employ in. The moment you also pay wages in VIC, QLD, or anywhere else in Australia, Revenue NSW apportions the threshold: you get NSW wages divided by total Australian wages, multiplied by the full threshold. Paying half your wages in NSW and half in VIC means you get roughly half the NSW threshold — not the full amount twice. Read the full mechanics, with a worked example, on our interstate apportionment page.

Grouping

If your business is grouped with other entities — through common ownership, common directors, or use of shared employees — the group shares one threshold between all members, not one threshold each. This is one of the most common ways businesses underestimate their payroll tax. See our grouping rules explainer for how the tests work.

Contractors

Payments to contractors can be treated as taxable wages under NSW’s relevant contract provisions, unless a specific exemption applies. Whether an exemption applies depends on facts like how many days the contractor worked for you, whether they engage their own staff, and whether they provide services to the public generally — this calculator flags the risk but does not attempt to calculate deemed contractor wages.

Frequently asked questions

What is the NSW payroll tax threshold?
The NSW annual tax-free threshold is $1,200,000 for the 2026-27 financial year. You only pay payroll tax on wages above this amount.
What is the NSW payroll tax rate?
5.45% on taxable wages above the threshold.
Do I get the full threshold if I also pay wages in another state?
No. If you pay wages in NSW and at least one other Australian state or territory, your NSW threshold is reduced in proportion to your NSW wages as a share of your total Australian wages. See our interstate apportionment guide for the full formula.
When do I need to register for NSW payroll tax?
You need to register with Revenue NSW once your Australian wages (or your share of a group’s wages) are likely to exceed the threshold. Registration and lodgement are handled directly through Revenue NSW — this tool only estimates your liability.
Is this the official NSW payroll tax calculator?
No. This is an independent tool, not affiliated with Revenue NSW. Always confirm your final liability with Revenue NSW or a registered tax agent before lodging.

Source: Revenue NSW — payroll tax thresholds and rates. Last verified 2026-08-12.