NT Payroll Tax Calculator 2025-26
Calculate Northern Territory payroll tax for your business using Territory Revenue Office rates. Features NT's diminishing deduction system where the deduction phases out between $2.5M and $7.5M.
Total taxable wages paid to NT employees for the financial year. Includes salaries, wages, commissions, bonuses, and superannuation.
2025-26 NT Payroll Tax
Rate: 5.5% (flat rate)
Threshold: $2,500,000
Phases out at: $7,500,000
NT uses a diminishing deduction that reduces to $0 at $7.5M wages.
Enter your total NT wages to calculate payroll tax.
Payroll tax applies to businesses with annual Australian wages over $2.5 million.
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The NT payroll tax rate is a flat 5.5% for all employers. This rate applies to taxable wages after the diminishing deduction is applied.
| National wages | Deductible amount |
|---|---|
| $2,500,000 or less | $2,500,000 (full) |
| $3,500,000 | $2,000,000 |
| $5,000,000 | $1,250,000 |
| $6,000,000 | $750,000 |
| $7,500,000 or more | $0 (none) |
Like WA, the Northern Territory uses a diminishing deduction system rather than a flat threshold. Your deduction reduces as national wages increase.
Diminishing deduction formula
Deduction = $2,500,000 − (Wages − $2,500,000) ÷ 2
The deduction reduces by $1 for every $2 of wages exceeding $2.5 million. This continues until wages reach $7.5 million, at which point no deduction applies.
Example: $5,000,000 in NT wages
For a business with $5,000,000 in total Australian wages (all in NT):
NT payroll tax applies to taxable wages paid to employees. This includes:
If your business pays wages in multiple states, your NT deductible amount is calculated based on total Australian wages, then applied proportionally to your NT wages.
Example: Interstate employer
A business pays $1,000,000 in NT wages and $5,000,000 in total Australian wages.
NT requires monthly lodgement for all registered employers. Unlike most other states, NT returns are due on the 21st of each month, not the 7th.
| Return type | Due date |
|---|---|
| Monthly returns | 21st of following month |
| Annual reconciliation | Required annually |
If the 21st falls on a weekend or public holiday, lodgement and payment are due on the next business day.
You must register for NT payroll tax in the month following the month your total Australian wages first exceed:
Registration is required even if your NT wages alone are below the threshold, as long as your total Australian wages exceed it.
What is the NT payroll tax rate for 2025-26?
The NT payroll tax rate is 5.5% flat for all employers for 2025-26. This rate applies to taxable wages after the diminishing deduction is applied.
What is the NT payroll tax threshold?
The NT payroll tax threshold is $2,500,000 for 2025-26. However, NT uses a diminishing deduction system where this deduction reduces by $1 for every $2 of wages over the threshold, phasing out completely at $7.5 million.
How does the NT diminishing deduction work?
The NT deduction reduces by $1 for every $2 of national wages exceeding $2.5 million. The formula is: Deduction = max(0, $2,500,000 - (national wages - $2,500,000) / 2). At $7.5 million, the deduction becomes zero.
When are NT payroll tax returns due?
NT payroll tax returns are due by the 21st of each month (not the 7th like most other states). This applies to all registered employers.
Are apprentice wages exempt from NT payroll tax?
The Northern Territory provides exemptions for wages paid to approved apprentices and trainees. Contact the Territory Revenue Office for specific eligibility details and application processes.
Tax Accuracy & Sources
Estimates Northern Territory payroll tax based on NT wages and the diminishing deduction system. It does not cover exempt wages, apprentice rebates, or contractor classification.
NT Payroll Tax Guides
See payroll tax on common wage totals and compare nearby thresholds.