What is the NSW payroll tax rate and threshold?

New South Wales applies a payroll tax rate of 5.45% on total Australian taxable wages above the annual tax-free threshold of $1,200,000. Only wages above the threshold are taxed, so an employer with $1.2M or less in wages owes no NSW payroll tax.

How is the threshold prorated?

If you are only liable for part of the financial year — for example a new business — the $1.2M annual threshold is reduced in proportion to the number of days you were an employer. The calculator does this when you enter a day count below 365.

Which wages are taxable for NSW payroll tax?

Taxable wages generally include salaries and wages, superannuation contributions, bonuses, commissions, allowances, fringe benefits and termination payments. The threshold also considers wages paid in other states if you are part of a grouped business.

Who has to pay NSW payroll tax?

Employers whose total Australian taxable wages exceed the $1.2M annual threshold must register for and pay NSW payroll tax on the NSW portion. Grouped employers share a single threshold across the group.

Is my data sent anywhere?

No. The calculation runs entirely in your browser using the published NSW rate and threshold. Nothing you enter is transmitted or stored.

Australia NSW Payroll Tax Calculator

New South Wales charges employers payroll tax on the total taxable wages they pay above a tax-free threshold. The current rate is 5.45% and the annual threshold is $1,200,000. This free calculator estimates your NSW payroll tax liability and prorates the threshold if your business operated for only part of the year.

How it works

NSW payroll tax uses a flat marginal structure above a tax-free threshold:

threshold      = $1,200,000 × (days operated / 365)
taxable excess = max(0, total NSW wages − threshold)
payroll tax    = taxable excess × 5.45%

Only the portion of wages above the threshold is taxed. If your total taxable wages are at or below the (prorated) threshold, you owe nothing. The threshold is reduced proportionally when you are only an employer for part of the financial year, which the calculator handles via the optional day count.

Example

An employer pays $2,000,000 in NSW taxable wages over a full financial year. The full $1,200,000 threshold applies, leaving a taxable excess of $800,000. Payroll tax is $800,000 × 5.45% = $43,600 for the year.

Notes

This is a single-entity estimate using the standard NSW rate and threshold. It does not model grouping (where related businesses share one threshold), interstate wage apportionment, or monthly lodgement adjustments. Verify your liability with Revenue NSW or your accountant before lodging.