NSW Payroll Tax Calculator 2025-26
The NSW payroll tax threshold for 2025-26 is $1,200,000 and the rate is 5.45%. Use this calculator for the threshold answer — then calculate your exact liability below.
If your real question is "how much threshold do I actually get?", use the calculator below and compare it with the NSW threshold and registration guide, especially if you have interstate wages or part-year payroll.
Total taxable wages paid to NSW employees for the financial year. Includes salaries, wages, commissions, bonuses, and superannuation.
2025-26 NSW Payroll Tax
Rate: 5.45%
Threshold: $1,200,000
Payroll tax is only payable on wages exceeding the threshold.
Enter your total NSW wages to calculate payroll tax.
Payroll tax applies to businesses with annual NSW wages over $1.2 million.
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NSW payroll tax rates 2025-26
| Item | 2025-26 |
|---|---|
| Payroll tax rate | 5.45% |
| Tax-free threshold | $1,200,000 |
| Monthly lodgement threshold | $20,000 annual liability |
Payroll tax is calculated only on wages that exceed the threshold. If your total NSW wages are $1.5 million, you pay tax on $300,000 — the amount over the $1.2 million threshold.
Need the employer-side rule summary first? Read the NSW payroll tax threshold and registration guide.
What wages are taxable?
NSW payroll tax applies to most payments made to employees and some contractors:
Taxable wages include
Exempt wages include
Interstate wages and threshold adjustment
If your business pays wages in multiple states, your NSW tax-free threshold is reduced proportionally.
NSW threshold × (NSW wages ÷ Total Australian wages)
Example
A business pays NSW wages: $900,000 · Victoria wages: $2,100,000 · Total: $3,000,000
Adjusted NSW threshold: $1,200,000 × ($900,000 ÷ $3,000,000) = $360,000
NSW payroll tax: ($900,000 − $360,000) × 5.45% = $29,430
Payroll tax grouping
Related businesses may be grouped for payroll tax purposes. When businesses are grouped:
Grouping can occur when businesses have common ownership, shared employees, or are otherwise related under the Payroll Tax Act.
Lodgement and payment
Monthly lodgement
If your annual NSW payroll tax liability exceeds $20,000, you must lodge monthly returns.
Annual reconciliation
All payroll tax payers must lodge an annual reconciliation by 28 July each year, reconciling monthly returns against actual wages for the financial year.
Key dates 2025-26
| Date | Event |
|---|---|
| 7 August 2025 | July return due |
| 7 September 2025 | August return due |
| 7 October 2025 | September return due |
| 7th of each month | Previous month's return due |
| 28 July 2026 | Annual reconciliation due |
What is the NSW payroll tax rate?
The NSW payroll tax rate is 5.45% for 2025-26. This rate applies to taxable wages exceeding the threshold of $1,200,000.
What is the payroll tax threshold in NSW?
The NSW payroll tax threshold is $1,200,000 for 2025-26. Businesses only pay payroll tax on wages exceeding this threshold. The threshold may be reduced if you pay wages in multiple states or are part of a group.
Do I need to register for payroll tax?
You must register for NSW payroll tax within 7 days of your total Australian wages exceeding the relevant threshold. Even if your NSW wages alone don't exceed $1.2 million, you may need to register if grouped with other businesses.
Is superannuation included in payroll tax?
Yes. Employer superannuation contributions are included as taxable wages for payroll tax purposes. This includes both the Superannuation Guarantee (12%) and any additional employer contributions.
Are contractor payments subject to payroll tax?
It depends. Payments to contractors may be taxable if the contractor is not genuinely independent, or if the contract is primarily for labour. Revenue NSW applies specific tests to determine whether contractor payments are taxable.
What happens if I miss a lodgement deadline?
Late lodgement may result in penalties and interest charges. If you're having difficulty meeting deadlines, contact Revenue NSW as early as possible to discuss payment arrangements.
Tax Accuracy & Sources
Estimates NSW payroll tax based on NSW wages and total Australian wages for threshold adjustment. It does not cover exempt wages, grouping provisions, or contractor classification.
NSW Payroll Tax Guides
See payroll tax on common wage totals and compare nearby thresholds.