QLD Payroll Tax Rates & Calculator 2026-27
Calculate Queensland payroll tax for your business. Uses current Queensland Revenue Office rates including the mental health levy and regional employer discount.
Rates and thresholds are applied for the selected financial year.
Total taxable wages paid to Queensland employees for the financial year. Includes salaries, wages, commissions, bonuses, and superannuation.
Principal place of employment in regional Queensland, at least 85% of taxable wages paid to regional employees, and wages within the $350M cap.
2026-27 Queensland Payroll Tax
Rate: 4.75% (≤$6.5M) or 4.95% (>$6.5M)
Threshold: $1,300,000
Mental health levy: 0.25% above $10M, plus 0.5% above $100M
The annual deduction tapers from $1.3M to $0 as Australian wages rise from $1.3M to $10.4M.
Enter your total Queensland wages to calculate payroll tax.Payroll tax applies to businesses with annual Queensland wages over $1.3 million.
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Queensland uses a tiered rate system based on your total Australian taxable wages. Regional employers qualify for a 1% discount until 30 June 2030.
| National wages | Standard rate | Regional rate |
|---|---|---|
| ≤ $6.5 million | 4.75% | 3.75% |
| > $6.5 million | 4.95% | 3.95% |
Queensland employers with significant Australian wages must pay a mental health levy in addition to base payroll tax. The levy uses its own thresholds, apportioned by the Queensland share of Australian wages.
| National wages | Mental health levy |
|---|---|
| ≤ $10 million | Nil |
| $10 million – $100 million | 0.25% |
| > $100 million | 0.25% primary + 0.5% additional |
The primary levy is 0.25% of Queensland wages above the adjusted $10M threshold. The additional levy is 0.5% only on Queensland wages above the adjusted $100M threshold.
Queensland payroll tax applies to taxable wages paid to employees. This includes:
Exempt wages — Some wages are exempt from payroll tax, including:
If your business pays wages in multiple states, the annual deduction first tapers according to total Australian wages, then the Queensland share is applied.
Example: Interstate employer
A business pays $800,000 in Queensland wages and $2,000,000 in total Australian wages.
Similarly, related businesses (grouped employers) share a single threshold based on combined wages.
Queensland regional employers can claim a 1% discount on their payroll tax rate until 30 June 2030. The principal place of employment must be in a listed regional Queensland SA4 area, at least 85% of taxable wages must be paid to regional employees, and the wage cap must not be exceeded.
Metropolitan employer
$38,000
$2M wages • $1.2M tapered deduction • 4.75%
Regional employer
$30,000
$2M wages • $1.2M tapered deduction • 3.75%
| Annual liability | Lodgement frequency | Due date |
|---|---|---|
| ≥ $80,000 | Monthly | 7th of following month |
| < $80,000 | Half-yearly | 7th of following month |
| Nil | Annual | 21 July |
All returns must be lodged through QRO Online. You can also use QRO Online to manage your payroll tax registration, calculate liability, and make payments.
Do I need to register for QLD payroll tax?
You must register within 7 days after the end of a month in which Australian taxable wages exceed $25,000 per week, or you join a group whose combined wages exceed that weekly amount. The annual payroll tax threshold is $1.3 million.
How does the $1.3 million deduction work?
The maximum annual deduction is $1.3 million. It reduces by $1 for every $7 of Australian taxable wages above $1.3 million and reaches zero at $10.4 million. Interstate wages affect how much of the deduction is available against Queensland wages.
How do I claim the regional discount?
You must have your principal place of employment in a listed regional Queensland area and pay at least 85% of taxable wages to regional employees. The 1% rate discount is unavailable above the $350 million wage cap.
What if I have employees in multiple states?
If you pay wages in multiple states, you may need to register in each state. In Queensland, total Australian wages determine the deduction taper and rate tier; the available deduction and mental health levy thresholds are then apportioned to Queensland.
Are contractor payments subject to payroll tax?
Contractor payments may be taxable if the contractor is deemed an employee for payroll tax purposes. This depends on factors like the level of control, provision of equipment, and the nature of the working relationship. When in doubt, seek advice from QRO.
Tax Accuracy & Sources
Estimates annual Queensland payroll tax, the tapered deduction, regional rate discount and mental health levy. It does not determine exempt wages, apprentice eligibility, group-member deduction allocation, regional eligibility disputes or contractor classification.
QLD Payroll Tax Guides
See payroll tax on common wage totals and compare nearby thresholds.