$1.3m threshold, 4.75% / 4.95% Queensland Revenue Office
Payroll Tax — Queensland
Queensland charges 4.75% for employers paying $6.5 million or less in Australian taxable wages, and 4.95% above that — over a $1,300,000 threshold.
| What | QLD |
|---|---|
| Annual threshold | $1,300,000 |
| Rate | 4.75% |
| Paid to | Queensland Revenue Office |
What you need to know
- The current threshold is $1,300,000 in annual Australian taxable wages.
- Rate: 4.75% where Australian taxable wages are $6.5 million or less.
- Rate: 4.95% where Australian taxable wages are more than $6.5 million.
- Regional employers may be entitled to a 1% discount on the rate until 30 June 2030.
- A mental health levy also applies, proportionately to Queensland taxable wages above its own thresholds.
- You may still have to register for payroll tax even if your wages are at or below the threshold and you owe nothing.
Why payroll tax surprises businesses
Payroll tax is a state tax on wages, and it is the tax most likely to catch a growing business by surprise for three reasons:
- The threshold is tested on Australia-wide wages, not just wages paid in that state. A business with staff in three states counts all of them.
- Groups share one threshold. Related entities are treated as one employer, so they do not each get their own tax-free amount.
- Registration and liability are separate. In several states you must register even when your wages are under the threshold and you owe nothing.
Frequently asked questions
What is the payroll tax rate in Queensland?
4.75% if you pay $6.5 million or less in Australian taxable wages, and 4.95% above that.
What is the threshold?
$1,300,000 in annual Australian taxable wages. Note that the threshold is measured on Australian wages, not just Queensland wages — wages paid in other states count towards the test.
Do I have to register if I am below the threshold?
Possibly, yes. Queensland says you may still need to register even though you have no liability. Registration and liability are separate questions.
What is the mental health levy?
A separate levy that applies proportionately to Queensland taxable wages above its own thresholds, on top of payroll tax. It has different thresholds from payroll tax, so being under one does not mean being under the other.
Compare the other states
| State | Threshold | Rate |
|---|---|---|
| New South Wales | $1,200,000 | 5.45% |
| Victoria | $1,000,000 | 4.85% |
| Queensland | $1,300,000 | 4.75% |
| Western Australia | $1,000,000 | 5.5% |
| Tasmania | $1,250,000 | 4% / 6.1% |
| Northern Territory | $2,500,000 | 5.5% / 6.5% |
Related
- Land tax calculator — the state tax on property instead of wages
- Company tax rates
- Take-home pay calculator
- Centrelink payment rates
From Queensland Revenue Office, checked 12 October 2026. General information only — not tax advice.