Payroll tax in the Northern Territory
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. The Northern Territory charges payroll tax under the Payroll Tax Act 2009 (NT). The threshold and rates shown are for 2025-26 and 2026-27, the year a higher rate for the largest employers took effect.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Threshold amount
$2,500,000
- Rate
- 5.5%
- Rate when total wages are equal to or greater than the step
- 6.5%
Payroll tax, 2026-27
1 July 2026 to 30 June 2027
| What it is | Value | Where it is set |
|---|---|---|
| Threshold amount | $2,500,000 | Sch 1 cl 1, definition of TA |
| Taper of the deduction for total wages above the threshold | 1/2 | Sch 1 cl 3, definition of AD |
| Rate | 5.5% | s 7A(1) |
| Rate when total wages are equal to or greater than the step | 6.5% | s 7A(2)(b) |
| Total wages from which the higher rate applies | $100,000,000 | s 7A(3) |
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 |
|---|---|---|
| Threshold amount | $2,500,000 | Sch 1 cl 1, definition of TA |
| Taper of the deduction for total wages above the threshold | 1/2 | Sch 1 cl 3, definition of AD |
| Rate | 5.5% | Sch 1 cl 1, definition of R |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
How it works in Northern Territory
- The Territory Revenue Office administers payroll tax. An employer owes nothing for a year unless its total Australian wages are more than the threshold amount, and then only on wages paid in the territory.
- Above the threshold, the annual deduction is reduced by the share of the excess shown in the table, so it reaches nil as Australian wages climb.
- For an employer paying wages in more than one state or territory, the annual deduction is multiplied by the Northern Territory's share of its Australian wages.
- In 2025-26 a single rate was charged on all taxable territory wages left after the deduction, whatever the size of the employer.
- From 2026-27, s 7A of the Act adds a higher rate for an employer whose total Australian wages are equal to or greater than the amount in the table, so reaching that amount exactly is enough.
- The higher rate replaces the ordinary one on all of the employer's taxable territory wages, not just the part above the step. The threshold and the deduction rules did not change.
General information
Sources
- Payroll Tax Act 2009 (NT), as in force at 1 July 2025
Office of the Parliamentary Counsel, Northern Territory. As in force at 1 July 2025, released 1 July 2025. Checked 15 October 2026.
© Northern Territory of Australia Licence: NT Legislation terms of use: copyright, Northern Territory of Australia.
- Payroll Tax Act 2009 (NT), as in force at 1 July 2026
Office of the Parliamentary Counsel, Northern Territory. As in force at 1 July 2026, released 1 July 2026. Checked 15 October 2026.
© Northern Territory of Australia Licence: NT Legislation terms of use: copyright, Northern Territory of Australia.
- Payroll tax
Territory Revenue Office (Department of Treasury and Finance, Northern Territory). Page modified 12 June 2026 (dcterms.modified metadata), released 12 June 2026. Checked 15 October 2026.
© Northern Territory of Australia Licence: NT.GOV.AU copyright notice: copyright, Northern Territory of Australia (fair dealing only unless a Creative Commons licence is stated).
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