TAS Payroll Tax Calculator 2025-26

What this calculator works out

This calculator estimates a Tasmanian employer's annual payroll tax liability for FY 2025-26, including:

• The $1,250,000 tax-free threshold on Australia-wide group taxable wages.
• The 4.0% base rate on wages between $1.25M and $2M.
• The 6.1% upper rate on wages above $2M.
• The treatment of group employers (only the designated group employer claims the threshold).
• An optional TAS-only wage share to apportion the result for employers with wages spread across states.

Numbers come from the State Revenue Office Tasmania payroll tax page and the rates and thresholds page. This is a general estimate, not a substitute for Tasmanian Revenue Online lodgement or professional advice.

The formula and where the rates come from

TAS payroll tax for FY 2025-26 uses these settings:

• Annual threshold: $1,250,000 of Australia-wide group taxable wages.
• Base rate: 4.0% on the slice from $1,250,001 to $2,000,000.
• Upper rate: 6.1% on the slice above $2,000,000.

Worked formula:

if wages <= 1_250_000              → tax = 0
if 1_250_000 < wages <= 2_000_000  → tax = 4.0% × (wages − 1_250_000)
if wages > 2_000_000               → tax = 4.0% × (2_000_000 − 1_250_000)
                                          + 6.1% × (wages − 2_000_000)
                                         = 30_000 + 6.1% × (wages − 2_000_000)

Group rule: A payroll-tax group must lodge through a designated group employer (DGE). Only the DGE claims the $1.25M threshold; other group members pay 4.0% (or 6.1% above $2M) on every dollar of their TAS taxable wages.

Taxable wages include salary, wages, allowances, fringe benefits (grossed up at the FBT rate), termination payments (other than tax-free components), employer super contributions including SG, and certain contractor payments. Specific exemptions apply for parental leave, workers compensation, and some apprentice / trainee wages — see the SRO Tasmania employers guide.

How to read the inputs

• Australia-wide group annual wages — total taxable wages across the whole group, every state. The threshold and rate band are determined here.
• TAS share of wages — 1.0 if all wages are paid in TAS, lower if you have NSW/VIC payrolls. The calculator computes the TAS-applicable tax then apportions for display.
• Single employer or DGE — uncheck for non-DGE group members so the threshold is removed.

Worked examples

1. Single TAS employer with $1,200,000 of annual wages. Below the $1.25M threshold → tax $0.

2. Single TAS employer with $1,500,000 of wages. Base-rate band. Tax = 4.0% × ($1,500,000 − $1,250,000) = 4.0% × $250,000 = $10,000. Effective rate ≈ 0.67%.

3. Single TAS employer with $2,000,000 of wages. End of base band. Tax = 4.0% × ($2,000,000 − $1,250,000) = 4.0% × $750,000 = $30,000. Effective rate = 1.5%.

4. Single TAS employer with $3,000,000 of wages. Both bands apply. Tax = $30,000 + 6.1% × ($3,000,000 − $2,000,000) = $30,000 + $61,000 = $91,000. Effective rate ≈ 3.03%.

5. National employer with $3,000,000 group wages but only 30% paid in TAS. The threshold and rates still use the full $3M group figure (tax on the full Australia-wide footing = $91,000). Apportioned to the TAS 30% = $27,300. The other states' portions are taxed under their own state regimes.

6. Group of two companies totalling $1,800,000 of TAS wages, with non-DGE members. The DGE claims the threshold against the group total (tax = 4.0% × ($1,800,000 − $1,250,000) = $22,000). Non-DGE members do not separately claim the threshold — it is consolidated at the DGE level.

Common pitfalls

• Forgetting the Australia-wide test. A TAS-only payroll of $1.1M looks below threshold, but if the corporate group also has interstate wages of $200,000, the group is over $1.25M and starts paying TAS payroll tax on its TAS portion.
• Letting non-DGE members claim the threshold. Only the DGE claims it. Non-DGE members are taxed at 4.0% (or 6.1%) on every TAS dollar.
• Missing the upper-rate cliff. Once group wages cross $2M, the 6.1% rate kicks in immediately on the slice above $2M. The slice between $1.25M and $2M is still taxed at 4.0%, so the marginal rate jumps but the tax on the lower slice does not.
• Missing fringe benefit gross-ups. The grossed-up Type 2 fringe benefits value (FBT base × 1/(1 − FBT rate)) is included in taxable wages, not the cash cost.
• Forgetting employer super. Super Guarantee and salary-sacrificed super are wages for payroll-tax purposes — about 11.5% of cash wages baseline (rising to 12% from FY 2026-27).
• Treating contractors as out of scope. Some contractor arrangements are deemed wages under Part 4 of the Payroll Tax Act 2008 (Tas). The 90-day, $200/day and ancillary tests need to be checked individually.
• Late lodgement penalties. Monthly returns are due by the 7th of the following month. Annual reconciliation is due 21 July. The SRO charges penalty tax and unpaid tax interest on overdue amounts.

Related calculators

• Payroll Tax Calculator NSW — equivalent calculation for the NSW threshold and rate.
• Payroll Tax Calculator VIC — VIC SRO settings and metro/regional rates.
• Payroll Tax Calculator QLD — QRO threshold, mental-health levy and progressive rates.
• Payroll Tax Calculator SA — RevenueSA reduced-rate band and 4.95% top rate.
• Payroll Tax Calculator WA — RevenueWA $1m threshold and tapering deduction.

Sources:

• State Revenue Office Tasmania — Payroll tax
• SRO Tas — Rates and thresholds
• SRO Tas — Grouping
• SRO Tas — Employers Guide to Payroll Tax
• Payroll Tax Act 2008 (Tas)