Payroll tax in New South Wales
This page describes the annual calculation for an employer that pays taxable wages throughout the financial year and is not part of a payroll tax group. Part-year employment and grouping can change the threshold and deduction. New South Wales taxes wages paid in the state once an employer's total Australian wages for the year pass the annual threshold. The threshold and rate here are the ones Revenue NSW publishes for 2025-26 and 2026-27.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Annual threshold
$1,200,000
- Rate
- 5.45%
Payroll tax, 2026-27
1 July 2026 to 30 June 2027
| What it is | Value | Where it is set |
|---|---|---|
| Annual threshold | $1,200,000 | Annual threshold and rate table, 1 July 2026 to 30 June 2027, threshold |
| Rate | 5.45% | Annual threshold and rate table, 1 July 2026 to 30 June 2027, rate |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
Payroll tax, 2025-26
1 July 2025 to 30 June 2026
| What it is | Value | Where it is set |
|---|---|---|
| Annual threshold | $1,200,000 | Annual threshold and rate table, 1 July 2025 to 30 June 2026, threshold |
| Rate | 5.45% | Annual threshold and rate table, 1 July 2025 to 30 June 2026, rate |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
How it works in New South Wales
- Payroll tax is a state tax on wages. In New South Wales it is set by the Payroll Tax Act 2007 (NSW) and administered by Revenue NSW.
- It applies only when an employer's total Australian wages for the financial year are more than the annual threshold, and then only to wages paid in New South Wales.
- The threshold works as a deduction: the rate is charged on New South Wales wages above it, not on every dollar of wages.
- An employer that also pays wages in other states or territories gets a share of the threshold, in proportion to the New South Wales share of its Australian wages.
- The threshold and the rate did not change between 2025-26 and 2026-27.
- Some payments and some employees are exempt, and related businesses can be grouped so that they share one threshold. Revenue NSW sets out what counts as wages.
General information
Sources
- Payroll tax thresholds and rates
Revenue NSW. 2025-26 and 2026-27, released 1 July 2026. Checked 15 October 2026.
© State of New South Wales through Revenue NSW Licence: Revenue NSW terms of use: copyright, State of New South Wales.
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