Payroll Tax on $1,500,000 in New South Wales (2025-26)
Payroll Tax Breakdown
| Total wages | $1,500,000 |
| Adjusted threshold | $1,200,000.00 |
| Taxable wages | $300,000.00 |
| Base payroll tax | $16,350.00 |
| Surcharges | $0.00 |
| Total annual payroll tax | $16,350.00 |
| Effective rate | 1.090% |
Assumes all Australian wages are paid in NSW and no regional discounts apply. Thresholds can be apportioned when wages are paid across multiple states.
Compare Nearby Wage Levels in NSW
| Total Wages | Payroll Tax | Effective Rate |
|---|---|---|
| $1,200,000 | $0.00 | 0% |
| $1,500,000 | $16,350.00 | 1.090% |
| $2,000,000 | $43,600.00 | 2.180% |
Compare Payroll Tax Across States
Payroll tax at this wage level
At wages under $1.5 million, you fall below the threshold in many states — ACT ($2M), SA ($1.5M), QLD ($1.3M), TAS ($1.25M), and NSW ($1.2M) all have thresholds in this range. You may only be liable in VIC ($900k) and WA ($1M). For a single-state employer at this level, payroll tax may be zero or minimal. The biggest risk is inadvertently crossing the threshold through hiring or wage increases mid-year.
Registration threshold
You must register for payroll tax once your total Australian wages exceed (or are expected to exceed) the state threshold within a financial year. Registration is required within 7 days. Failing to register and pay can result in penalties and interest backdated to when the liability first arose.
Watch for threshold crossing mid-year
If you hire staff or increase wages partway through the year, you may cross the threshold for the full year — not just from the date of crossing. Payroll tax is calculated on annual wages, so a December hire can mean payroll tax applies from the preceding July.
Typical businesses: Small businesses with 5-15 employees, sole traders with a few staff, early-stage startups, and small professional practices.
Payroll Tax in New South Wales
NSW has a payroll tax threshold of approximately $1.2 million with a flat rate of 5.45%. The threshold is reduced proportionally if you also pay wages in other states or territories — your total Australian wages determine how much of the $1.2M threshold is allocated to NSW. NSW payroll tax is lodged and paid monthly if your annual liability exceeds $20,000.
How to calculate payroll tax on $1,500,000 in NSW
- Start with total annual wages of $1,500,000 in New South Wales.
- Apply the adjusted threshold ($1,200,000.00) to identify taxable wages.
- Calculate base payroll tax and then add any applicable surcharges for NSW.
- Confirm the annual payroll tax result ($16,350.00) and compare against nearby wage levels or other states.
NSW Payroll Tax Calculator
Need a precise payroll tax calculation for New South Wales? Use the NSW calculator for interstate wages, regional rates, and surcharge tiers.
Related Tools
FAQs
How much payroll tax do I pay on $1,500,000 in NSW?
Payroll tax on $1,500,000 in New South Wales is 16,350.00 per year based on current 2025-26 rates. The effective rate is 1.090% of total wages.
What is the payroll tax threshold in NSW?
New South Wales applies payroll tax once wages exceed the state threshold. For $1,500,000, taxable wages are 300,000.00 after the adjusted threshold.
Which state has the lowest payroll tax on $1.5M?
At $1,500,000, South Australia has the lowest payroll tax at 0.00. The highest is Western Australia at 31,731.00.
Does this include interstate wage adjustments?
No. These pages assume your total Australian wages equal your wages in NSW. If you pay wages in multiple states, thresholds and surcharges can change. Use the state payroll tax calculator for a full breakdown.
What should employers know about payroll tax at $1.5M wages?
At wages under $1.5 million, you fall below the threshold in many states — ACT ($2M), SA ($1.5M), QLD ($1.3M), TAS ($1.25M), and NSW ($1.2M) all have thresholds in this range. You may only be liable in VIC ($900k) and WA ($1M). For a single-state employer at this level, payroll tax may be zero or minimal. The biggest risk is inadvertently crossing the threshold through hiring or wage increases mid-year.