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.
| What | TAS |
|---|---|
| Annual threshold | $1,250,000 |
| Rate | 4% / 6.1% |
| Paid to | State Revenue Office Tasmania |
| Wages | Rate |
|---|---|
| 0 to $1,250,000 | 0% |
| $1,250,001 to $2,000,000 | 4% |
| $2,000,001 and above | 6.1% |
What you need to know
- There are two thresholds and two rates for 2026-27, on top of the nil band — the table is on its own page and the structure is unusual.
- 0 to $1,250,000: nil.
- $1,250,001 to $2,000,000: 4%.
- $2,000,001 and above: 6.1%.
- Monthly thresholds vary according to the number of days in the month and whether the employer is in a payroll tax group, and are rounded to the nearest whole dollar.
- Examples for periods of less than a year are published in the annual adjustment return guideline.
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 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
| 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 State Revenue Office Tasmania, checked 12 October 2026. General information only — not tax advice.