Breakdown of calculations
Annual taxable wages$2,000,000
NSW threshold$1,200,000
Taxable wages above threshold$800,000
Payroll tax estimate$43,600
Employers and accountants
Payroll Tax Calculator
Estimate Australian state payroll tax using wages, state thresholds and adjustable payroll tax rates.
Plain-English explanation
Estimate payroll tax by comparing annual taxable wages to the selected state or territory threshold and applying the relevant rate.
Assumptions are adjustable where practical. The calculator does not determine eligibility, residency, grouping, exemptions, anti-avoidance rules or every offset.
Tax payable
$43,600
Effective tax rateEffective tax rate is the estimated tax payable divided by the taxable base for this calculator. It shows the average rate across the amount being taxed, not the rate on your next dollar. Refunds and credits are shown as 0%.
5.5%
Marginal tax rate
45.0%
Tax savings / credits
$0
Supporting assumptions
- NSW settings selected
- Grouping, interstate wages and levies excluded
Formula used
Payroll tax estimate = max(0, taxable wages - threshold) x state payroll tax rate.
Worked example
A NSW employer with $2,000,000 taxable wages is assessed against the NSW threshold and rate in the calculator.
ATO and revenue guidance
FAQs
Does payroll tax vary by state?
Yes. Thresholds, rates, mental health levies and grouping rules vary by state and territory.
Does this include grouping?
No. It estimates tax from the wage and threshold inputs only.
Related calculators
Income Tax
Estimate Australian resident individual income tax, Medicare levy, marginal rate and effective tax rate.
Company Tax
Estimate Australian company tax using base rate entity and full company tax rate assumptions.
Sole Trader
Estimate tax payable for an Australian sole trader using business income, deductions and individual tax rates.
Trust Distribution
Estimate tax outcomes for simple Australian trust distributions to individual and company beneficiaries.