Business tax

Payroll Tax Calculator WA

Work out your Western Australia payroll tax for 2026. The WA threshold is $1 million and the rate is 5.5%. Enter your total annual Australian taxable wages for the tax payable. Free, no signup.

Western Australia ratesVerified at wa.gov.au, July 2026$1 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 WA

$31,731

Payroll tax on $1,500,000 of wages in Western Australia. Effective rate 2.12% of total wages.

Over the WA threshold

Total Australian taxable wages$1,500,000

Tax-free thresholdWestern Australia annual$1,000,000

Payroll tax rate5.50%

Payroll tax payableAbove threshold$31,731

Effective rate2.12%

How this is worked out. Tax is 5.5% of wages above a diminishing threshold. The $1 million threshold reduces by $2 for every $13 of wages, reaching nil at $7.5 million. For the official figure, use the Western Australia payroll tax calculator.

Higher rates apply to very large payrolls: 6% on Australian wages above $100 million and 6.5% above $1.5 billion. This tool applies the standard 5.5%.

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 wa.gov.au, July 2026. General information, not financial advice. Confirm with the revenue office before you lodge.

Simon Chadwick

Founder, Orbit Money

Method: WA payroll tax threshold and rate from wa.gov.auUpdated: 17 July 2026Sources: wa.gov.au

How payroll tax works in Western Australia

Payroll tax is a state tax on employers. In Western Australia (WA) you pay it on your total Australian taxable wages once they pass the annual threshold of $1 million, charged at 5.5%. Western Australia charges 5.5% above a $1 million threshold that diminishes by $2 for every $13 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.

WA payroll tax threshold and rate 2026

These are the headline figures for Western Australia. The calculator above applies them, plus any taper, for you.

Western Australia	Figure
Annual tax-free threshold	$1 million
Payroll tax rate	5.5%
Tax on $1,500,000 of wages	$31,731
Tax on $2,000,000 of wages	$63,462

Tax is 5.5% of wages above a diminishing threshold. The $1 million threshold reduces by $2 for every $13 of wages, reaching nil at $7.5 million.

Higher rates apply to very large payrolls: 6% on Australian wages above $100 million and 6.5% above $1.5 billion. This tool applies the standard 5.5%.

Grouping and interstate wages

Two things catch WA employers out. First, grouping: businesses that share owners, directors or employees are grouped and must add their wages together under a single Western Australia threshold. Second, interstate wages: if you pay staff in more than one state, Western Australia gives you only a share of its $1 million threshold, based on the proportion of your wages paid here. This calculator treats your wages as Western Australia alone, which is the right starting point for a single-state business. If you employ across borders or are grouped, use the Western Australia revenue office calculator or your accountant.

Frequently asked questions

What is the payroll tax threshold in WA?

The Western Australia payroll tax threshold is $1 million of total Australian taxable wages a year. Pay less than that across your whole business or group and you generally owe no WA payroll tax, though you may still need to register. Western Australia charges 5.5% above a $1 million threshold that diminishes by $2 for every $13 of wages, reaching nil at $7.5 million.

What is the payroll tax rate in WA?

The Western Australia payroll tax rate is 5.5%. Tax is 5.5% of wages above a diminishing threshold. The $1 million threshold reduces by $2 for every $13 of wages, reaching nil at $7.5 million. On $2 million of total Australian wages, a WA employer pays about $63,462. Enter your own wages in the calculator above for the exact figure.

How much is payroll tax in WA?

In Western Australia you pay about $31,731 on $1,500,000 of wages for 2026. Payroll tax applies only once your total Australian taxable wages pass the $1 million threshold, and it is charged at 5.5%. The calculator above works out your exact WA payroll tax from your wages.

Who has to pay payroll tax in WA?

Employers pay WA payroll tax, not employees. You become liable once your total Australian taxable wages pass the Western Australia threshold of $1 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 NSW

$1.2 million threshold, 5.45% rate for New South Wales.

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 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

NSW VIC QLD 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.