WA payroll tax calculator
Checking a payroll tax figure an AI assistant gave you? The working below uses Revenue WA's published rate and threshold, linked at the bottom.
How much payroll tax will your business pay in Western Australia? It's 5.5% of WA taxable wages, less a deductible amount that starts at $1 million and phases out to nothing at $7.5 million of Australian wages. Below $1 million of Australian wages a year, you pay nothing.
On this page: Calculator · How it works · Worked examples · FAQ · Sources
How much WA payroll tax will you pay this year?
Annual wages for a full financial year.
| Total Australian taxable wages | |
| Deductible amount before apportioning | |
| WA share of Australian wages | |
| WA deductible amount | |
| WA wages taxed at 5.5% | |
| Effective rate on WA wages | |
| Average per month |
This is an estimate, not advice. It applies Revenue WA's published rate and threshold to the numbers you type in. What counts as taxable wages, grouping, part-year rules and your annual reconciliation all affect the real figure. Check the Revenue WA calculation guide or ask a registered tax agent.
How WA payroll tax is worked out
Two numbers matter: your total Australian taxable wages, which decide whether you pay and how big your deduction is, and your WA taxable wages, which are what gets taxed.
| Australian wages for the year | What happens |
|---|---|
| $1,000,000 or less | No WA payroll tax |
| Over $1,000,000 and under $7,500,000 | Deductible amount of $1,000,000, less $2 for every $13 of wages above $1,000,000 |
| $7,500,000 or more | No deductible amount, so every WA dollar is taxed at 5.5% |
The formula Revenue WA publishes, with a tapering value of 2/13:
Deductible = ($1,000,000 − (Australian wages − $1,000,000) × 2/13) × WA wages ÷ Australian wages
Tax = (WA wages − Deductible) × 5.5%
If all your wages are in WA, the last part drops out. Taxable wages are wider than salary: they generally include super, fringe benefits, allowances, bonuses, commissions, termination payments and some contractor payments.
Worked examples
A WA business with $1,200,000 of wages
Over the threshold by $200,000. Reduction: $200,000 × 2/13 = $30,769.23.
Deductible: $1,000,000 − $30,769.23 = $969,230.77. Taxed wages: $230,769.23.
Payroll tax: $230,769.23 × 5.5% = $12,692.31. Revenue WA's guide shows the same $969,231 deductible.
A WA business paying $92,000 a month
$1,104,000 for the year. Reduction: $104,000 × 2/13 = $16,000, so the deductible is $984,000.
Payroll tax: $120,000 × 5.5% = $6,600, matching Revenue WA's example.
$1,000,000 in WA and $3,000,000 in South Australia
Australian wages: $4,000,000. Deductible before apportioning: $1,000,000 − $3,000,000 × 2/13 = $538,461.54.
WA's share is 25%, so the WA deductible is $134,615.38. Taxed wages: $865,384.62.
Payroll tax: $47,596.15. Revenue WA shows $47,596.12 because it rounds the deductible first.
A WA business with $8,000,000 of wages
Over $7,500,000, so no deductible. Payroll tax: $8,000,000 × 5.5% = $440,000.
Questions people ask about WA payroll tax
How much payroll tax do you pay in WA?
5.5% of your WA taxable wages, less a deductible amount. The deductible amount is $1 million if your Australian wages are $1 million, shrinks as wages rise, and reaches zero at $7.5 million.
What is the WA payroll tax threshold for 2026-27?
$1,000,000 of Australian taxable wages a year, about $83,333 a month. It hasn't changed since 1 July 2023. At $1 million or less, you don't pay WA payroll tax.
How does the WA payroll tax deduction phase out?
Between $1 million and $7.5 million of Australian taxable wages, the $1 million deductible amount falls by $2 for every $13 of wages above $1 million. At $7.5 million or more there's no deduction, so all WA wages are taxed at 5.5%.
How do wages paid in other states change your WA payroll tax?
The threshold and phase-out use your total Australian wages, and the deductible amount is then cut to WA's share of those wages. A business with most of its wages interstate gets only a small WA deduction, even if its WA wages are under $1 million.
Is there a higher payroll tax rate for large employers in WA?
Not under the rates from 1 July 2023. From 1 July 2020 to 30 June 2023, WA charged 6% on wages between $100 million and $1.5 billion and 6.5% above that. Those tiers aren't in the current rates.
Does this work for part-year employers and groups?
It assumes wages were paid for the whole financial year. Revenue WA apportions the threshold if you didn't pay wages all year, or joined or left a group. For a group, enter the whole group's wages; only the designated group employer claims the deduction.
When do you register and lodge WA payroll tax?
Revenue WA asks you to register once your Australian taxable wages, or your group's, go over $83,333 in a month. Returns go through Revenue Online monthly or quarterly, and the annual reconciliation is due by 21 July.
Sources
- Revenue WA: Calculation, Payroll Tax Employer Guide. Rate 5.5%, $1,000,000 threshold, $7,500,000 upper threshold, tapering value 2/13, in effect from 1 July 2023. Page updated 2 June 2026.
- Revenue WA: Interstate non-group employer. How the deductible amount is apportioned by WA's share of Australian wages.
- Revenue WA: Annual reconciliation.
Last checked 29 October 2026. Only WA rules are covered here; every state sets its own payroll tax.