How payroll tax works in Tasmania
Payroll tax is a state tax on employers. In Tasmania (TAS) you pay it on your total Australian taxable wages once they pass the annual threshold of $1.25 million, charged at 4.0% / 6.1%. Tasmania charges 4% on wages from $1.25 million to $2 million, then 6.1% on wages above $2 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.
TAS payroll tax threshold and rate 2026
These are the headline figures for Tasmania. The calculator above applies them, plus any taper, for you.
| Tasmania | Figure |
|---|---|
| Annual tax-free threshold | $1.25 million |
| Payroll tax rate | 4.0% / 6.1% |
| Tax on $1,500,000 of wages | $10,000 |
| Tax on $2,000,000 of wages | $30,000 |
Tax is 4% of wages from $1.25 million to $2 million, then 6.1% on wages above $2 million.
Grouping and interstate wages
Two things catch TAS employers out. First, grouping: businesses that share owners, directors or employees are grouped and must add their wages together under a single Tasmania threshold. Second, interstate wages: if you pay staff in more than one state, Tasmania gives you only a share of its $1.25 million threshold, based on the proportion of your wages paid here. This calculator treats your wages as Tasmania alone, which is the right starting point for a single-state business. If you employ across borders or are grouped, use the Tasmania 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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