Three tiers: nil / 4% / 6.1% State Revenue Office Tasmania

Payroll Tax — Tasmania

Tasmania does not use a single rate. For 2026-27 it charges nothing up to $1,250,000, 4% from $1,250,001 to $2,000,000, and 6.1% above that.

WhatTAS
Annual threshold$1,250,000
Rate4% / 6.1%
Paid toState Revenue Office Tasmania
WagesRate
0 to $1,250,0000%
$1,250,001 to $2,000,0004%
$2,000,001 and above6.1%

What you need to know

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:

  1. 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.
  2. Groups share one threshold. Related entities are treated as one employer, so they do not each get their own tax-free amount.
  3. 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 Tasmania?

For 2026-27 it depends on your wages: nil up to $1,250,000, 4% from $1,250,001 to $2,000,000, and 6.1% above that.

Why are there two rates?

Tasmania uses a stepped structure rather than one rate with a phase-out. It means the rate jumps at each threshold rather than tapering, which makes the arithmetic simpler but the jump at $2 million sharper.

Is the higher rate on all wages?

It is a stepped scale — the 4% band applies to wages in that band and 6.1% to wages above $2 million. Check the SRO's own calculator, which handles partial years and groups as well.

Why do the monthly thresholds vary?

Because they are apportioned by the number of days in each month and rounded to the nearest dollar — so February is not the same as March. The SRO explains this in its monthly threshold guidance.

Compare the other states

StateThresholdRate
New South Wales$1,200,0005.45%
Victoria$1,000,0004.85%
Queensland$1,300,0004.75%
Western Australia$1,000,0005.5%
Tasmania$1,250,0004% / 6.1%
Northern Territory$2,500,0005.5% / 6.5%

See all six compared →

Related

From State Revenue Office Tasmania, checked 12 October 2026. General information only — not tax advice.