NSW payroll tax calculator 2026-27
Estimate payroll tax in New South Wales: 5.45% of taxable wages above the $1,200,000 tax-free threshold for 2026-27. The threshold is apportioned if you also pay wages interstate or only paid wages for part of the year. This calculator is for NSW only. Other states have different thresholds and rates. It matches Revenue NSW's worked examples.
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CalculatorThresholdsWorked examplesFAQ
NSW thresholds and rate
| Tax year | Tax-free threshold | Rate |
|---|---|---|
| 1 July 2026 – 30 June 2027 | $1,200,000 | 5.45% |
| 1 July 2025 – 30 June 2026 | $1,200,000 | 5.45% |
Monthly thresholds for 2026-27 (used to decide whether you must register): $92,055 (28-day month), $98,630 (30 days), $101,918 (31 days).
Worked examples (Revenue NSW)
- NSW only, full year: $1,500,000 of wages − $1,200,000 threshold = payroll tax calculated on $300,000 (5.45% = $16,350).
- Part year: employed for 184 of 365 days: $1,200,000 × 184/365 = $604,931.51 threshold, tax calculated on $895,068.49.
- NSW and interstate: $900,000 NSW wages of $3,000,000 total: $1,200,000 × 0.3 = $360,000 threshold, tax calculated on $540,000.
- Interstate and part year: $1,000,000 NSW of $3,000,000, wages paid for 184 days: $400,000 × 184/365 = $201,643.84 threshold.
FAQ
What is the payroll tax threshold in NSW for 2026-27?
$1,200,000 a year, with a rate of 5.45% on taxable wages above it. The monthly thresholds are $92,055, $98,630 and $101,918 for 28, 30 and 31-day months.
How is payroll tax calculated in NSW?
Work out your tax-free threshold (apportioned for interstate wages and part-year employment), subtract it from your NSW taxable wages, and multiply what’s left by 5.45%. $1,500,000 of NSW wages for a full year means tax on $300,000, which is $16,350.
How does interstate wages affect the NSW threshold?
The threshold is apportioned by the share of total Australian wages paid in NSW. With $900,000 in NSW out of $3,000,000 Australia-wide, the NSW threshold is 30% of $1,200,000, or $360,000.
When do I need to register for payroll tax in NSW?
When you pay wages in NSW and your total Australian wages go over the monthly threshold in any month. Registered businesses lodge an annual reconciliation even if no tax is payable.
Does this work for Victoria or other states?
No. Each state has its own threshold, rate and deductions. This calculator applies the NSW rules only.
Sources (checked 17 Oct 2026): Revenue NSW Payroll tax thresholds and rates (rates, monthly thresholds and the examples above).
General information, not tax advice. What counts as taxable wages (including contractor payments and exemptions such as apprentices) depends on the Payroll Tax Act 2007 (NSW). Check with Revenue NSW.