Business tax

Payroll Tax Calculator NSW

Work out your New South Wales payroll tax for 2026. The NSW threshold is $1.2 million and the rate is 5.45%. Enter your total annual Australian taxable wages for the tax payable. Free, no signup.

New South Wales ratesVerified at revenue.nsw.gov.au, July 2026$1.2 million threshold

Your payroll

State or territory

Total annual Australian taxable wages

Whole group, all states. Include gross wages, super and taxable fringe benefits.

Payroll tax is a tax on employers, not employees. It applies once your total Australian wages pass the state threshold. Working out what lands in a worker's account instead? Use the take-home pay calculator.

Payroll tax in NSW

$16,350

Payroll tax on $1,500,000 of wages in New South Wales. Effective rate 1.09% of total wages.

Over the NSW threshold

Total Australian taxable wages$1,500,000

Tax-free thresholdNew South Wales annual$1,200,000

Payroll tax rate5.45%

Payroll tax payableAbove threshold$16,350

Effective rate1.09%

How this is worked out. Tax is 5.45% of the wages above the $1.2 million annual threshold. For the official figure, use the New South Wales payroll tax calculator.

Uses your total group Australian taxable wages, treated as a single state for simplicity. Grouping and interstate wages split the threshold between states. Rates verified at revenue.nsw.gov.au, July 2026. General information, not financial advice. Confirm with the revenue office before you lodge.

Simon Chadwick

Founder, Orbit Money

Method: NSW payroll tax threshold and rate from revenue.nsw.gov.auUpdated: 17 July 2026Sources: revenue.nsw.gov.au

How payroll tax works in New South Wales

Payroll tax is a state tax on employers. In New South Wales (NSW) you pay it on your total Australian taxable wages once they pass the annual threshold of $1.2 million, charged at 5.45%. New South Wales charges a flat 5.45% on Australian wages above a $1.2 million annual threshold, with no taper. It is not deducted from your workers, and it is separate from PAYG withholding. The wages that count include gross salaries, superannuation, allowances, bonuses, commissions, directors' fees and most taxable fringe benefits. Enter your own wages in the calculator above for the figure that matches your business.

NSW payroll tax threshold and rate 2026

These are the headline figures for New South Wales. The calculator above applies them, plus any taper, for you.

New South Wales	Figure
Annual tax-free threshold	$1.2 million
Payroll tax rate	5.45%
Tax on $1,500,000 of wages	$16,350
Tax on $2,000,000 of wages	$43,600

Tax is 5.45% of the wages above the $1.2 million annual threshold.

Grouping and interstate wages

Two things catch NSW employers out. First, grouping: businesses that share owners, directors or employees are grouped and must add their wages together under a single New South Wales threshold. Second, interstate wages: if you pay staff in more than one state, New South Wales gives you only a share of its $1.2 million threshold, based on the proportion of your wages paid here. This calculator treats your wages as New South Wales alone, which is the right starting point for a single-state business. If you employ across borders or are grouped, use the New South Wales revenue office calculator or your accountant.

Frequently asked questions

What is the payroll tax threshold in NSW?

The New South Wales payroll tax threshold is $1.2 million of total Australian taxable wages a year. Pay less than that across your whole business or group and you generally owe no NSW payroll tax, though you may still need to register. New South Wales charges a flat 5.45% on Australian wages above a $1.2 million annual threshold, with no taper.

What is the payroll tax rate in NSW?

The New South Wales payroll tax rate is 5.45%. Tax is 5.45% of the wages above the $1.2 million annual threshold. On $2 million of total Australian wages, a NSW employer pays about $43,600. Enter your own wages in the calculator above for the exact figure.

How much is payroll tax in NSW?

In New South Wales you pay about $16,350 on $1,500,000 of wages for 2026. Payroll tax applies only once your total Australian taxable wages pass the $1.2 million threshold, and it is charged at 5.45%. The calculator above works out your exact NSW payroll tax from your wages.

Who has to pay payroll tax in NSW?

Employers pay NSW payroll tax, not employees. You become liable once your total Australian taxable wages pass the New South Wales threshold of $1.2 million. Wages counted include gross salaries, superannuation, allowances, bonuses, commissions, directors' fees and taxable fringe benefits. Grouped businesses add their wages together and share one threshold.

Employing in another state? Use the all-states payroll tax calculator to compare payroll tax across NSW, VIC, QLD, WA, SA, TAS, the NT and the ACT.

Related tools

Payroll Tax Calculator VIC

$1 million threshold, 4.85% (regional 1.2125%) rate for Victoria.

Payroll Tax Calculator QLD

$1.3 million threshold, 4.75% / 4.95% rate for Queensland.

Payroll Tax Calculator WA

$1 million threshold, 5.5% rate for Western Australia.

Payroll Tax Calculator SA

$1.5 million threshold, 4.95% rate for South Australia.

Payroll Tax Calculator (all states)

Compare payroll tax across every Australian state and territory.

Take-Home Pay Calculator (AU)

The employee side: what lands in a worker's account after tax.

Other states

VIC QLD WA SA TAS NT ACT

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About the author

Simon Chadwick

Founder of Orbit Money

Simon is the founder of Orbit Money, a tool that helps people and businesses track subscriptions and recurring spend. He builds Orbit's free money calculators and writes about tax and personal finance for Australian and UK readers.