Payroll tax in Queensland
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. Payroll tax in Queensland is set by the Payroll Tax Act 1971 (Qld), which pairs a tapering deduction with a higher rate and a mental health levy for larger employers. The tables give the threshold and rates for 2025-26 and 2026-27.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Annual deduction amount (K)
$1,300,000
- Rate
- 4.75%
- Rate on all wages when total wages are more than the step
- 4.95%
Payroll tax, 2026-27
1 July 2026 to 30 June 2027
| What it is | Value | Where it is set |
|---|---|---|
| Annual deduction amount (K) | $1,300,000 | s 29(1), definition of annual deduction, K |
| Taper of the deduction for wages above K | 1/7 | s 29(1), definition of annual deduction, 1/7 term |
| Rate | 4.75% | s 10(1) |
| Rate on all wages when total wages are more than the step | 4.95% | s 10(2)(b) |
| Total wages above which the higher rate applies | $6,500,000 | s 10(4), definition of threshold amount, para (a) |
| Mental health levy: total wages above | $10,000,000 | s 43I, definition of primary annual levy amount, C |
| Mental health levy rate | 0.25% | s 43I, definition of primary annual levy amount, R |
| Additional levy: total wages above | $100,000,000 | s 43I, definition of additional annual levy amount, C |
| Additional levy rate | 0.5% | s 43I, definition of additional annual levy amount, R |
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 deduction amount (K) | $1,300,000 | s 29(1), definition of annual deduction, K |
| Taper of the deduction for wages above K | 1/7 | s 29(1), definition of annual deduction, 1/7 term |
| Rate | 4.75% | s 10(1) |
| Rate on all wages when total wages are more than the step | 4.95% | s 10(2)(b) |
| Total wages above which the higher rate applies | $6,500,000 | s 10(4), definition of threshold amount, para (a) |
| Mental health levy: total wages above | $10,000,000 | s 43I, definition of primary annual levy amount, C |
| Mental health levy rate | 0.25% | s 43I, definition of primary annual levy amount, R |
| Additional levy: total wages above | $100,000,000 | s 43I, definition of additional annual levy amount, C |
| Additional levy rate | 0.5% | s 43I, definition of additional annual levy amount, R |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
How it works in Queensland
- The Queensland Revenue Office administers the tax. The Act gives an annual deduction equal to the threshold amount, so no tax is left to pay while Australian wages stay at or below it.
- Once Australian wages rise past the threshold, the deduction tapers: it is reduced by the share of the excess shown in the table until it reaches nil.
- Where an employer pays wages in other states as well, the deduction is multiplied by Queensland's share of its Australian wages before it is taken from Queensland wages.
- Queensland has two rates. When total Australian wages are more than the step in the table, the higher rate replaces the general one on every dollar of taxable Queensland wages, not only the wages above the step.
- The mental health levy is charged with payroll tax on Queensland wages above Queensland's share of the levy threshold. An additional levy, at its own rate, is charged above a second threshold.
- Every setting is the same in 2025-26 and 2026-27. Under s 95 of the Act, cents are disregarded in amounts worked out by a formula. A regional discount, which depends on where employees work or live, is not shown in the tables.
General information
Sources
- Payroll Tax Act 1971 (Qld), reprint current as at 1 July 2026
Office of the Queensland Parliamentary Counsel. Reprint current as at 1 July 2026, released 1 July 2026. Checked 15 October 2026.
Sourced from the Queensland Legislation website (www.legislation.qld.gov.au), licensed under CC BY 4.0 Licence: CC BY 4.0.
- Payroll tax
Queensland Revenue Office. Page modified 17 August 2026 (article:modified_time metadata), released 17 August 2026. Checked 15 October 2026.
© The State of Queensland (Queensland Treasury) Licence: Queensland Treasury copyright notice: copyright, State of Queensland (no commercial reproduction without written permission).
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