How payroll tax works in Northern Territory
Payroll tax is a state tax on employers. In Northern Territory (NT) you pay it on your total Australian taxable wages once they pass the annual threshold of $2.5 million, charged at 5.5%. The Northern Territory has the highest threshold at $2.5 million, then charges 5.5% above a deduction that falls by $1 for every $2 of wages, reaching nil at $7.5 million. 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.
NT payroll tax threshold and rate 2026
These are the headline figures for Northern Territory. The calculator above applies them, plus any taper, for you.
| Northern Territory | Figure |
|---|---|
| Annual tax-free threshold | $2.5 million |
| Payroll tax rate | 5.5% |
| Tax on $1,500,000 of wages | Nil (under threshold) |
| Tax on $2,000,000 of wages | Nil (under threshold) |
Tax is 5.5% of wages above the deduction. The $2.5 million deduction falls by $1 for every $2 of wages, reaching nil at $7.5 million.
From 1 July 2026 a 6.5% rate applies to groups with Australia-wide wages of $100 million or more. This tool applies the standard 5.5%.
Grouping and interstate wages
Two things catch NT employers out. First, grouping: businesses that share owners, directors or employees are grouped and must add their wages together under a single Northern Territory threshold. Second, interstate wages: if you pay staff in more than one state, Northern Territory gives you only a share of its $2.5 million threshold, based on the proportion of your wages paid here. This calculator treats your wages as Northern Territory alone, which is the right starting point for a single-state business. If you employ across borders or are grouped, use the Northern Territory revenue office calculator or your accountant.
Frequently asked questions
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.
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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.
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