NSW Payroll Tax Rate 2026-27
A flat 5.45% on NSW taxable wages above the tax-free threshold. There is no higher rate for large employers and no surcharge.
NSW Payroll Tax Threshold
- Annual: $1,200,000 of Australian taxable wages
- Monthly: $92,055 (28-day month), $98,630 (30-day month) or $101,918 (31-day month)
The $1.2 million annual threshold does not phase out, however large the payroll. An employer that also pays wages interstate gets the NSW share of it: $1.2m × NSW wages ÷ Australian wages. In a group, only one member (the designated group employer) claims it.
How to Calculate NSW Payroll Tax
NSW is the simplest system in the country: the threshold never phases out, so every NSW-only employer over $1.2 million pays 5.45% on the excess.
| NSW wages (all in NSW) | Threshold / deduction | Payroll tax | Effective rate |
|---|---|---|---|
| $1,500,000 | $1,200,000 | $16,350 | 1.09% |
| $3,000,000 | $1,200,000 | $98,100 | 3.27% |
| $5,000,000 | $1,200,000 | $207,100 | 4.14% |
| $10,000,000 | $1,200,000 | $479,600 | 4.8% |
Interstate example: an employer paying $2,000,000 in NSW out of $5,000,000 Australia-wide (40% in NSW) gets a threshold or deduction of $480,000 and pays $82,840 in NSW. It also pays payroll tax in the other states on the other $3m.
Who Must Register for NSW Payroll Tax
Register within 7 days after the end of the month in which your total Australian wages (including your group's) exceed the monthly threshold, if you pay any wages in NSW.
The test uses total Australian wages, including every business you are grouped with, so an employer with a small NSW payroll can still be liable. Grouped businesses add their wages together, and only the designated group employer claims the threshold.
NSW Payroll Tax Due Dates 2026-27
- Monthly returns: 7th of the following month (the next business day if the 7th is a weekend or public holiday); the December return is due 14 January. For 2026-27: 7 Aug, 7 Sep, 7 Oct, 9 Nov, 7 Dec 2026, 14 Jan, 8 Feb, 8 Mar, 7 Apr, 7 May, 7 Jun 2027.
- Annual reconciliation: 28 July 2027 (the June month is included in the annual return)
Returns are lodged and paid online with the Revenue NSW. Late payment attracts interest and penalty tax.
What Counts as Wages for NSW Payroll Tax
Payroll tax law is harmonised across the states on what counts as wages, so the list is broadly the same everywhere. Taxable wages include:
- salaries, wages, commissions, bonuses and allowances;
- employer superannuation contributions;
- fringe benefits and employee share scheme benefits;
- director’s fees and termination payments such as paid-out leave;
- payments to many contractors (the “relevant contract” rules) and to employment agencies, unless an exemption applies.
Commonly exempt: government Paid Parental Leave, paid parental leave the employer provides (within limits), workers compensation payments, and the tax-free part of a genuine redundancy payment. Exemptions and their limits do differ by state, so check the revenue office’s list before you rely on one.
NSW Payroll Tax and Your Employees
Payroll tax is an on-cost, like super and icare NSW workers compensation premiums: the employer pays it on top of wages and none of it is withheld from pay. Employees who want their own figures should use the NSW pay calculator for take-home pay. For the full cost of a hire — salary, super, leave and payroll tax — use the employer cost calculator.
NSW Compared With Other States
| State | Rate | Annual threshold | Threshold phase-out / extras |
|---|---|---|---|
| NSW payroll tax | 5.45% | $1,200,000 | No phase-out; no surcharge |
| VIC payroll tax | 4.85% | $1,000,000 | Phases out $3m–$5m; 1.2125% regional rate; surcharges from $10m |
| QLD payroll tax | 4.75% | $1,300,000 | 4.95% above $6.5m; deduction nil at $10.4m; regional discount; mental health levy from $10m |
| WA payroll tax | 5.5% | $1,000,000 | Diminishes to nil at $7.5m |
| SA payroll tax | 4.95% | $1,500,000 | Rate phases in 0%–4.95% between $1.5m and $1.7m; $600k deduction |
| TAS payroll tax | 4% / 6.1% | $1,250,000 | 4% from $1.25m to $2m, 6.1% above |
| ACT payroll tax | 6.75% | $1,750,000 | Rate rises in bands to 8.75% above $150m |
| NT payroll tax | 5.5% | $2,500,000 | Tapers to nil at $7.5m; 6.5% from $100m |
Frequently Asked Questions
What is the NSW payroll tax rate for 2026-27?
A flat 5.45% on NSW taxable wages above the tax-free threshold. There is no higher rate for large employers and no surcharge.
What is the NSW payroll tax threshold?
$1,200,000 a year of Australian taxable wages; the monthly figure is $92,055 (28-day month), $98,630 (30-day month) or $101,918 (31-day month). The $1.2 million annual threshold does not phase out, however large the payroll. An employer that also pays wages interstate gets the NSW share of it: $1.2m × NSW wages ÷ Australian wages. In a group, only one member (the designated group employer) claims it.
How much NSW payroll tax is payable on a $3 million wage bill?
For an employer paying $3,000,000 of taxable wages, all in New South Wales, for the full 2026-27 year: the threshold or deduction is $1,200,000, leaving $1,800,000 taxed, and the payroll tax is $98,100 (3.27% of the wage bill).
When do I have to register for NSW payroll tax?
Register within 7 days after the end of the month in which your total Australian wages (including your group's) exceed the monthly threshold, if you pay any wages in NSW.
When is NSW payroll tax due?
Monthly returns: 7th of the following month (the next business day if the 7th is a weekend or public holiday); the December return is due 14 January. For 2026-27: 7 Aug, 7 Sep, 7 Oct, 9 Nov, 7 Dec 2026, 14 Jan, 8 Feb, 8 Mar, 7 Apr, 7 May, 7 Jun 2027. Annual return for 2026-27: 28 July 2027 (the June month is included in the annual return).
Does NSW payroll tax come out of an employee's pay?
No. Payroll tax is paid by the employer to the Revenue NSW on top of wages. It is not withheld from pay and does not appear on a payslip, so it does not change an employee's take-home pay.
How these figures are worked out▼
Rates, thresholds and rules come from the Revenue NSW and were checked on 23 September 2026. The calculator and tables assume a full 2026-27 year of wages with the threshold claimed in full (by the designated group employer, for a group) and no exemptions. They do not model part-year employers or monthly returns; the Revenue NSW’s online return is the final word. The engine is tested against the worked examples the revenue offices publish.
Sources & References
- 1New South Wales payroll tax rates and thresholds— Revenue NSW
- 2Key dates for payroll tax— Revenue NSW
- 3Register for payroll tax— Revenue NSW
- 4Lodging payroll tax returns— Payroll Tax Australia
Last verified: 23 September 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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