Queensland payroll tax, 2026–27
| Annual threshold | $1,300,000 |
| Rate, Australian wages $6.5m or less | 4.75% |
| Rate, Australian wages over $6.5m | 4.95% |
| Deduction phase-out | $1 for every $7 of wages over $1.3m; nil at $10.4m |
| Monthly deduction range | $108,333 to $866,666 of monthly wages |
| Mental health levy (Australian wages over $10m) | 0.25%; plus 0.5% over $100m |
| Annual return for 2026–27 due | 21 July 2027 |
Queensland Revenue Office's rates page was last updated on 17 July 2024 and calls these the current rates; the deduction ranges have applied since 1 January 2023. Regional employers may get a 1% discount on the rate until 30 June 2030. The estimator doesn't cover the regional discount or the mental health levy.
Checked on 22 October 2026 against QRO: rates and thresholds · QRO: deductions · QRO: due dates · QRO: periodic returns · QRO: mental health levy. Rates can change each 1 July. Check your figures with the revenue office before you lodge.
Two examples
Wages paid only in Queensland
A business pays $3,000,000 of taxable wages in Queensland for the full year and none elsewhere. That's $1,700,000 over $1.3m, so the deduction drops by a seventh of that to $1,057,143. Tax is 4.75% of $1,942,857: about $92,286 for the year.
Wages paid in Queensland and NSW
A business pays $1,800,000 in Queensland and $600,000 in NSW, so $2,400,000 in Australia. The deduction on that is $1,142,857, and Queensland is 75% of the wages, so its deduction is $857,143. Queensland tax is 4.75% of $942,857: about $44,786. NSW payroll tax is worked out separately; the estimator above shows both.
These businesses are made up. Each one is a single employer, not part of a group.
QLD payroll tax questions
What is the Queensland payroll tax threshold for 2026–27?
$1.3 million of annual Australian taxable wages, according to Queensland Revenue Office. For a group, it's worked out on the group's combined Australian wages, and it's reduced if you only paid wages for part of the year.
How does the Queensland deduction work?
Up to $1.3 million is deducted from your Queensland wages. It drops by $1 for every $7 of Australian wages over $1.3m and is nil at $10.4m. If you pay wages interstate, it's reduced to your Queensland share of Australian wages. In a group, only the designated group employer claims it.
What is the Queensland payroll tax rate?
4.75% if you (or your group) pay $6.5 million or less in Australian taxable wages, and 4.95% above that. Regional employers may get a 1% discount until 30 June 2030. A mental health levy also applies when Australian wages are over $10 million.
When are Queensland payroll tax returns due in 2026–27?
Monthly returns are due on the 7th of the next month, except October (9 November 2026), December (14 January 2027), January (8 February 2027) and February (8 March 2027). Half-yearly lodgers are due 14 January 2027. There is no June return: June wages go in the annual return, due 21 July 2027.
Prepare the return from Xero Payroll
Quarterday is in development. It will connect to Xero (read-only) and prepare payroll tax by state for you to check and lodge.