NSW payroll tax for 2026-27 is 5.45% of taxable wages above a $1,200,000 annual threshold, with no surcharge. Employers register within 7 days after the month their Australian wages pass the monthly threshold, lodge by the 7th of each month and lodge the annual return by 28 July.
Payroll tax in New South Wales is administered by Revenue NSW. This page sets out the 2026-27 rates and threshold (from 1 July 2026), how to work out the tax, and when to register, lodge and pay. For every state side by side, see our payroll tax by state guide.
NSW payroll tax rates and threshold 2026-27
| 2026-27 | |
|---|---|
| Rate | 5.45% flat, no surcharge |
| Annual threshold | $1,200,000 (no phase-out for large employers) |
| Monthly threshold | $92,055 (28-day month), $98,630 (30 days), $101,918 (31 days) |
| Monthly returns | Due 7 days after the end of each month (no June return) |
| Annual return | 28 July |
| Online system | Payroll Tax Online |
How to calculate NSW payroll tax
NSW tax is simple: 5.45% of NSW taxable wages above the threshold. The threshold does not shrink for large employers. It is only reduced if you also pay wages in other states (NSW threshold x NSW wages / total Australian wages) or if you employ for part of the year (by days employed).
Example: a subsidiary with $1,800,000 of wages, all in Sydney, pays ($1,800,000 - $1,200,000) x 5.45% = $32,700 for the year.
When you must register
You must register within 7 days after the end of the month in which your total Australian wages (including your group's wages) go above the NSW monthly threshold. Wages paid in other states count towards the test, so an employer with a large Victorian payroll and one NSW employee must register in NSW too.
Lodging and paying
- Monthly: lodge and pay 7 days after the end of each month, or the next business day. June is covered by the annual return.
- Annually: if your annual liability is $20,000 or less you can choose to pay once a year. Above $20,000 you must pay monthly.
- Annual return: due 28 July each year (or the next business day). It reconciles the year and works out the refund or balance due.
- Returns are lodged through Revenue NSW's Payroll Tax Online, using your client ID and correspondence ID.
Exemptions and concessions
NSW has no regional rate and no surcharge. Exempt wages include those paid by charities and certain not-for-profits, and specific types of payment listed by Revenue NSW (for example some parental leave and defence leave). Check the exemption pages before treating any wages as exempt.
Interest and penalties
Interest on unpaid tax is charged daily at the market rate plus an 8% premium: 12.51% for October to December 2026. Penalty tax ranges from nil to 90% of the tax depending on the circumstances, with higher rates for significant global entities.
Employers in more than one state, and overseas companies
Payroll tax is charged by each state on the wages paid for work done there, but the threshold tests use your total Australian wages, including those of related companies. Two consequences catch new employers:
- Interstate wages reduce the threshold. If you also pay wages in other states, you claim only the NSW share of the threshold (NSW wages / total Australian wages). You must register in every state where you pay wages once the group passes the threshold, even if you have only one employee there.
- Grouping. Related businesses, such as two Australian subsidiaries of the same overseas parent, are grouped. The group shares one threshold, claimed by the designated group employer.
We register overseas-owned companies for payroll tax in every state, lodge the monthly and annual returns, and run the payroll itself through our payroll service, from $200 a month. If you have no Australian entity yet, our employer of record service (from $500 per employee a month) employs your staff and handles payroll tax for you.
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Frequently asked questions
What is the NSW payroll tax threshold for 2026-27?
$1,200,000 a year. Monthly it is $92,055, $98,630 or $101,918 depending on the number of days in the month.
What is the NSW payroll tax rate?
5.45% of taxable wages above the threshold. There is no surcharge for large employers.
When is the NSW annual payroll tax return due?
28 July each year, or the next business day.
This content is general information only and is not legal, financial or tax advice. Laws and regulations change often. For advice on your circumstances, speak to a qualified adviser.