Payroll Tax in New South Wales
New South Wales charges payroll tax at 5.5% on wages above $1,200,000. NSW also applies a mental health levy of 0.75% for wages above $10M.
Threshold
$1,200,000
Rate
5.45%
Verified
Aug 2026
Payroll Tax by Wage Level — NSW
| Total Wages | Payroll Tax | Effective Rate |
|---|---|---|
| $500K | Exempt | 0% |
| $750K | Exempt | 0% |
| $1M | Exempt | 0% |
| $1.2M | Exempt | 0% |
| $1.3M | $5,450 | 0.42% |
| $1.5M | $16,350 | 1.09% |
| $1.75M | $29,975 | 1.71% |
| $2M | $43,600 | 2.18% |
| $2.5M | $70,850 | 2.83% |
| $3M | $98,100 | 3.27% |
| $4M | $152,600 | 3.82% |
| $5M | $207,100 | 4.14% |
| $7.5M | $343,350 | 4.58% |
| $10M | $479,600 | 4.80% |
How NSW Compares — on $2M Total Wages
| State | Threshold | Rate | Tax on $2M |
|---|---|---|---|
| ACT | $2,000,000 | 6.85% | $0 |
| SA | $1,500,000 | 4.95% | $24,750 |
| NT | $1,500,000 | 5.5% | $27,500 |
| TAS | $1,250,000 | 4.0% | $30,000 |
| QLD | $1,300,000 | 4.75% | $33,250 |
| NSW ← you are here | $1,200,000 | 5.5% | $44,000 |
| VIC | $1,000,000 | 4.85% | $48,500 |
| WA | $1,000,000 | 5.5% | $55,000 |
Key Facts — New South Wales Payroll Tax
Who needs to register? Any employer (or group of employers) with total Australian wages exceeding $1,200,000 in NSW must register for payroll tax with Revenue NSW.
What counts as wages? Salary, wages, commissions, bonuses, allowances, superannuation contributions, fringe benefits, and contractor payments (in some cases) are all included in the payroll tax calculation.
When is it due? Payroll tax is lodged and paid monthly (by the 7th of the following month). An annual reconciliation is required by 28 July each year.
Register here: Revenue NSW — Payroll Tax →