Queensland payroll tax for 2026-27 is 4.75% for employers with Australian wages of $6.5 million or less and 4.95% above that. The $1,300,000 deduction reduces by $1 for every $7 of wages above $1.3 million and is nil at $10.4 million. A mental health levy applies above $10 million.
Payroll tax in Queensland is administered by the Queensland Revenue Office (QRO). 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.
QLD payroll tax rates and threshold 2026-27
| 2026-27 | |
|---|---|
| Rate | 4.75% (Australian wages up to $6.5M); 4.95% above $6.5M |
| Annual deduction | $1,300,000, reducing by $1 for every $7 above $1.3M, nil at $10.4M |
| Maximum monthly deduction | $108,333 |
| Mental health levy | 0.25% above $10M of Australian wages; a further 0.5% above $100M |
| Regional discount | 1% off the rate to 30 June 2030 (not for employers paying over $350M) |
| Annual return | 21 July |
| Online system | QRO Online |
How to calculate QLD payroll tax
Work out the deduction first, then apply the rate that matches your total Australian wages.
Example: $3,000,000 of wages, all in Queensland. The deduction is $1,300,000 - ($3,000,000 - $1,300,000) / 7 = $1,057,143. Tax = ($3,000,000 - $1,057,143) x 4.75% = about $92,286.
The mental health levy is separate: 0.25% on Queensland taxable wages above the $10 million threshold, plus a further 0.5% above $100 million. The levy thresholds are measured on Australian wages and scaled down for interstate wages, grouping and part-year employment.
When you must register
You must register within 7 days after the end of the first month in which your Australian wages (or your group's) exceed $25,000 a week.
Lodging and paying
- Frequency: monthly if your annual liability is $80,000 or more, half-yearly if it is less than $80,000, and annually if it is nil.
- Due dates: 7 days after the end of each return period. The December return is due 14 January, and there is no June return.
- Annual return: due 21 July. The 2026-27 return is due 21 July 2027.
- Returns are lodged through QRO Online.
Exemptions and concessions
- Regional discount: rates of 3.75% and 3.95% apply until 30 June 2030 if your principal place of employment is in regional Queensland and at least 85% of your Queensland taxable wages go to regional employees. It does not apply to employers paying more than $350 million.
- Apprentice and trainee rebate: a 50% rebate on wages paid to eligible apprentices and trainees, extended to 30 June 2027.
Interest and penalties
Late lodgement can attract penalty tax of 75% of the payroll tax and mental health levy, which can be increased by up to 20%. Unpaid tax interest is 12.43% for 2026-27.
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 QLD share of the threshold (QLD 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 QLD payroll tax threshold for 2026-27?
The deduction is $1,300,000 a year (up to $108,333 a month). It reduces by $1 for every $7 of Australian wages above $1.3 million and is nil at $10.4 million.
What is the QLD payroll tax rate?
4.75% if your Australian wages are $6.5 million or less, and 4.95% above that. Eligible regional employers pay 1% less.
When must I register for payroll tax in Queensland?
Within 7 days after the end of the first month in which your Australian wages exceed $25,000 a week.
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.