Tasmanian payroll tax for 2026-27 is 4% on taxable wages between $1,250,000 and $2,000,000 and 6.1% on wages above $2,000,000. Wages up to $1.25 million are tax-free. Returns are due by the 7th of each month and the annual adjustment return by 21 July.
Payroll tax in Tasmania is administered by the State Revenue Office of Tasmania. 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.
TAS payroll tax rates and threshold 2026-27
| 2026-27 | |
|---|---|
| Threshold | $1,250,000 a year |
| Rates | 4% on wages from $1.25M to $2M; 6.1% above $2M |
| Monthly thresholds | Days in month / days in year x $1.25M (and x $2M for the upper bracket) |
| Monthly returns | Due the 7th of the next month |
| Annual adjustment return | 21 July |
| Online system | Tasmanian Revenue Online (TRO) |
How to calculate TAS payroll tax
Tasmania has two brackets. Each band of wages is taxed at its own rate.
Example: $3,000,000 of wages, all in Hobart. The first $1,250,000 is tax-free; $750,000 (from $1.25 million to $2 million) is taxed at 4% = $30,000; and $1,000,000 above $2 million is taxed at 6.1% = $61,000. Total = $91,000.
An employer that does not claim the threshold (for example a group member that is not the designated group employer) pays 6.1% on all its Tasmanian taxable wages.
When you must register
Register within 7 days after the end of the month in which your Australian wages (or your group's) exceed $1.25 million a year, or $24,038 a week during a month (Payroll Tax Act 2008 (Tas) s 86). Every Tasmanian wage-paying member of a group must register.
Lodging and paying
- Monthly: returns are due by the 7th of the following month. Some employers with low wages may be allowed to lodge annually.
- Annual adjustment return: due 21 July (or the next working day). It replaces the June return.
- Returns are lodged through Tasmanian Revenue Online (TRO).
Exemptions and concessions
The payroll tax rebate for apprentices closed to new starts on 30 June 2026. Apprentices employed before then (from 1 July 2023) remain eligible for up to two years, and the rebate for trainees and youth employees closed to new starts on 30 June 2025.
Interest and penalties
Interest for 2026-27 is 8.43% (the 4.43% market rate plus a 4% premium). Penalty tax depends on the circumstances, and failing to register is an offence.
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 TAS share of the threshold (TAS 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 Tasmanian payroll tax threshold?
$1,250,000 a year. Wages above that are taxed at 4% up to $2 million and 6.1% above $2 million.
What is the payroll tax rate in Tasmania?
4% on wages from $1.25 million to $2 million and 6.1% on wages above $2 million.
When is the Tasmanian annual adjustment return due?
21 July each year, or the next working 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.