Insights · Tax ·
Queensland payroll tax in 2026
Payroll tax is a state tax on wages. In Queensland it starts to apply once your Australian taxable wages, or your group’s, pass $1.3 million a year.
Rates and threshold
- Threshold: $1.3 million a year in Australian taxable wages ($108,333 a month).
- Rate: 4.75% where Australian taxable wages are $6.5 million or less; 4.95% above $6.5 million.
- Regional employers may get a 1% rate discount until 30 June 2030.
- Mental health levy: an extra 0.25% on wages above $10 million, and a further 0.5% above $100 million.
When to register
You must register within seven days of the first month in which your Australian wages (or group wages) exceed $25,000 a week, even if you don’t expect to go over $1.3 million.
The traps
- Grouping: related businesses (common control, shared employees) are grouped and share one threshold.
- Contractors: payments to some contractors can be treated as wages under the relevant contract provisions.
- What counts as wages: super contributions, fringe benefits and some allowances are included.
Growing past the threshold is a good problem, but it needs to be priced into jobs. See markup vs margin.
Quick answers
What is the Queensland payroll tax threshold?
$1.3 million a year in Australian taxable wages, per the Queensland Revenue Office.
What is the Queensland payroll tax rate?
4.75% for wages of $6.5 million or less and 4.95% above that.
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General information only. This doesn’t take your circumstances into account and isn’t tax, financial or legal advice. Talk to your accountant or registered tax agent before acting. PRM is not a registered tax agent; tax agent services are provided by Australian Tax & Super Pty Ltd (TPB 25291395).