Payroll tax in Tasmania
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. Tasmania sets payroll tax in the Payroll Tax Act 2008 (Tas), using two rate bands rather than one rate. The threshold and both rates shown apply in 2025-26 and 2026-27.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Threshold amount
$1,250,000
- Rate up to the top tax bracket threshold
- 4%
- Rate above the top tax bracket threshold
- 6.1%
Payroll tax, 2026-27
1 July 2026 to 30 June 2027
| What it is | Value | Where it is set |
|---|---|---|
| Threshold amount | $1,250,000 | Sch 1 cl 1, definition of TA |
| Top tax bracket threshold | $2,000,000 | Sch 1 cl 1, definition of TTB |
| Rate up to the top tax bracket threshold | 4% | Sch 1 cl 1, definition of R1 |
| Rate above the top tax bracket threshold | 6.1% | Sch 1 cl 1, definition of R2 |
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 | $1,250,000 | Sch 1 cl 1, definition of TA |
| Top tax bracket threshold | $2,000,000 | Sch 1 cl 1, definition of TTB |
| Rate up to the top tax bracket threshold | 4% | Sch 1 cl 1, definition of R1 |
| Rate above the top tax bracket threshold | 6.1% | Sch 1 cl 1, definition of R2 |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
How it works in Tasmania
- The State Revenue Office of Tasmania administers the tax. It is due only for a year in which total Australian wages pass the threshold amount, and only on wages paid in Tasmania.
- The deduction equals the threshold amount, cut back for an employer with interstate wages to the fraction of its Australian wages that it pays in Tasmania.
- The Act also defines a top tax bracket threshold. Where total Australian wages do not exceed it, every taxable Tasmanian dollar is charged at the lower rate.
- Where Australian wages are above the top tax bracket threshold, the lower rate covers the band between the deduction and Tasmania's share of that threshold, and the upper rate covers the rest.
- The two rates work as marginal bands: passing the top tax bracket threshold changes the rate only on wages above Tasmania's share of it, not on the band below.
- Both thresholds and both rates are unchanged between 2025-26 and 2026-27. Each is defined in the Act itself, so the tables cite the Act's schedule for every value.
General information
Sources
- Payroll Tax Act 2008 (Tas), authorised version as at 1 April 2020
Office of Parliamentary Counsel Tasmania. Authorised version as at 1 April 2020, released 5 May 2020. Checked 15 October 2026.
Sourced from the Tasmanian Legislation website (www.legislation.tas.gov.au), licensed under CC BY 4.0 Licence: CC BY 4.0.
- Payroll Tax
State Revenue Office of Tasmania. Page last published 21 September 2026, released 21 September 2026. Checked 15 October 2026.
© State of Tasmania Licence: Tasmanian Government copyright notice: licence to download, print and reproduce for non-commercial purposes with acknowledgement.
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