Payroll tax calculator

TAS Payroll Tax Calculator 2025-26

Calculate Tasmania payroll tax for your business using the current SRO Tasmania rates. Features TAS's two-tier system with rates of 4% and 6.1% based on total Australian wages.

Tier 1: 4% Tier 2: 6.1% $1.25M threshold
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Total taxable wages paid to Tasmanian employees for the financial year. Includes salaries, wages, commissions, bonuses, and superannuation.

2025-26 TAS Payroll Tax

Tier 1: 4% (wages $1,250,000$2,000,000)
Tier 2: 6.1% (wages >$2,000,000)

Rate and deduction both depend on total Australian wages.

Enter your total Tasmanian wages to calculate payroll tax.

Payroll tax applies to businesses with annual Australian wages over $1.25 million.

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TAS payroll tax rates 2025-26

Tasmania uses a two-tier payroll tax system for 2025-26. The tier that applies to your business is determined by your total Australian wages, not just your Tasmanian wages.

TierAustralian wagesRateDeduction
Tier 1$1.25M – $2M4%$1,250,000
Tier 2Over $2M6.1%$2,000,000

The tier is determined by your total Australian wages. If your total wages are $2 million or less, Tier 1 applies. If they exceed $2 million, Tier 2 applies with its higher rate but also a larger deduction.

How the two-tier system works

Tasmania's two-tier system is designed so that moving from Tier 1 to Tier 2 is not punitive. Although Tier 2 has a higher rate of 6.1%, the deduction also increases from $1.25 million to $2 million. This means a business that just crosses into Tier 2 pays less than it would under Tier 1 at the boundary.

Tier 1 example

$1,500,000 in wages

Taxable: $1,500,000 − $1,250,000 = $250,000
Tax: $250,000 × 4% = $10,000

Tier 2 example

$3,000,000 in wages

Taxable: $3,000,000 − $2,000,000 = $1,000,000
Tax: $1,000,000 × 6.1% = $61,000
What wages are taxable?

TAS payroll tax applies to taxable wages paid to employees. This includes:

Salaries and wages
Commissions and bonuses
Superannuation contributions
Allowances (with some exemptions)
Fringe benefits (grossed-up taxable value)
Certain contractor payments
Directors' fees
Termination payments (some components)
Interstate wages

If your business pays wages in multiple states, your TAS deduction is calculated based on total Australian wages, then applied proportionally to your Tasmanian wages.

Example: Interstate employer

A business pays $500,000 in TAS wages and $3,000,000 in total Australian wages.

Tier Tier 2 (total wages exceed $2M)
TAS proportion $500,000 ÷ $3,000,000 = 16.67%
TAS deduction $2,000,000 × 16.67% = $333,333
TAS taxable wages $500,000 − $333,333 = $166,667
TAS tax $166,667 × 6.1% = $10,167
Lodgement and payment

Tasmania requires monthly lodgement for all registered employers. Lodge through the SRO Tasmania online portal.

Return typeDue date
Monthly returns7th of following month
Annual reconciliation21 July

If the 7th falls on a weekend or public holiday, lodgement and payment are due on the next business day.

FAQ
What is the TAS payroll tax rate for 2025-26?

Tasmania has a two-tier payroll tax system for 2025-26. Tier 1 applies a rate of 4% for businesses with Australian wages between $1.25 million and $2 million. Tier 2 applies a rate of 6.1% for businesses with Australian wages exceeding $2 million.

What is the TAS payroll tax threshold?

Tasmania has two thresholds based on total Australian wages. Tier 1 has a deduction of $1,250,000 for wages between $1.25M and $2M. Tier 2 has a deduction of $2,000,000 for wages exceeding $2M.

How does Tasmania's two-tier system work?

If your total Australian wages are between $1.25M and $2M, you pay 4% on wages above $1.25M. If your wages exceed $2M, you pay 6.1% on wages above $2M. The higher tier has a larger deduction, so the transition is not punitive.

When are TAS payroll tax returns due?

Monthly returns are due by the 7th of the following month. An annual reconciliation return is due by 21 July each year. Lodge through the SRO Tasmania online portal.

Do I need to register for TAS payroll tax?

You must register if your total Australian wages exceed $1.25 million annually or $104,167 in any month. Registration is required even if your Tasmanian wages alone are below the threshold.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2025-26

Estimates Tasmania payroll tax based on the two-tier rate system and total Australian wages. It does not cover exempt wages, apprentice rebates, or contractor classification.

TAS Payroll Tax Guides

See payroll tax on common wage totals and compare nearby thresholds.

Open TAS payroll tax guide

Last updated 26 May 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

Reviewed by AusTax Tools Editorial Desk

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