How payroll tax works in South Australia
Payroll tax is a state tax on employers. In South Australia (SA) you pay it on your total Australian taxable wages once they pass the annual threshold of $1.5 million, charged at 4.95%. South Australia levies no tax up to $1.5 million, then phases the rate up to 4.95% between $1.5 million and $1.7 million, applying it to wages after a $600,000 deduction. 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.
SA payroll tax threshold and rate 2026
These are the headline figures for South Australia. The calculator above applies them, plus any taper, for you.
| South Australia | Figure |
|---|---|
| Annual tax-free threshold | $1.5 million |
| Payroll tax rate | 4.95% |
| Tax on $1,500,000 of wages | Nil (under threshold) |
| Tax on $2,000,000 of wages | $69,300 |
No tax up to $1.5 million. Above that, a $600,000 deduction is subtracted from wages before the rate applies. Between $1.5 million and $1.7 million the rate rises from 0% to 4.95%; above $1.7 million the full 4.95% applies to wages after the deduction.
Grouping and interstate wages
Two things catch SA employers out. First, grouping: businesses that share owners, directors or employees are grouped and must add their wages together under a single South Australia threshold. Second, interstate wages: if you pay staff in more than one state, South Australia gives you only a share of its $1.5 million threshold, based on the proportion of your wages paid here. This calculator treats your wages as South Australia alone, which is the right starting point for a single-state business. If you employ across borders or are grouped, use the South Australia 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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