Northern Territory Payroll Tax Calculator 2026–27

Northern Territory payroll tax for 2026–27: 5.50% on wages above the $2,500,000 threshold. Calculate annual and monthly liability.

Updated 2026-10-03 · Northern Territory official rates

Northern Territory payroll tax per year$41,2501.38% of wages · threshold $2,500,000 · 2026–27

Monthly (approx.)	$3,438
Main rate	5.50%
Threshold	$2,500,000

NSW

$98,100

VIC

$97,000

QLD

$92,286

$126,923

$118,800

TAS

$91,000

ACT

$84,375

$41,250

Your result is ready

Payroll tax 2026–27 (deduction tapers $1 for every $2 above $2.5m, nil at $7.5m; 6.5% on all wages from $100m)

Value over	Tax
$0	$0
$2,500,000	$0 + 8.25% of the excess over $2,500,000
$7,500,000	$412,500 + 5.50% of the excess over $7,500,000
$100,000,000	6.50% of the whole value

Key facts

Northern Territory payroll tax is 5.5% of taxable wages, and from 1 July 2026 a higher 6.5% rate applies to employers and payroll tax groups with Australia-wide wages of $100 million or more (Payroll Tax Act 2009 s 7A).
The NT payroll tax-free threshold is $2,500,000 a year ($208,333 a month), raised from the $1,500,000 that applied from 2011–12 to 2024–25, and it is unchanged for 2026–27.
Once Australia-wide wages exceed $2,500,000, the NT tax-free entitlement reduces by $1 for every $2 of excess wages and is fully phased out at $7,500,000.
In the Territory Revenue Office’s worked example, an ungrouped employer with $2,900,000 of NT wages has a tax-free amount of $2,300,000 and pays $600,000 × 5.5% = $33,000.
An ungrouped NT employer with $5,000,000 of wages has a deduction of $1,250,000 and pays $206,250 in payroll tax, an average rate of 4.13%.
For a payroll tax group only the designated group employer claims the tax-free amount, apportioned by the ratio of NT wages to Australian wages, and the $100 million test for the 6.5% rate is applied to the whole group’s Australia-wide wages.
Unlike the $2,500,000 deduction, the $100 million threshold for the 6.5% rate is not prorated: where circumstances change during the year (for example an employer joins or leaves a group), each relevant period under section 84 is tested against the full $100 million.
An employer must register for NT payroll tax in the month after its wages first exceed the monthly threshold; returns are due by the 21st of the following month, with the June annual return reconciling the year by 21 July.
The TRO may approve annual lodgement where an employer’s estimated payroll tax liability does not exceed $20,000 a year.
NT exempt wages include wages of apprentices and eligible trainees, up to 14 weeks of maternity or adoption leave (and paternity leave) and pay for defence force leave, while unused leave paid out on termination is taxable; the NT has no regional rate or additional levy.

Other states

Northern Territory payroll tax at different payroll sizes

The Northern Territory has the highest payroll tax threshold in Australia at $2,500,000, so many Territory businesses that would pay payroll tax interstate pay none here. Above the threshold the deduction tapers quickly, and the effective rate approaches the full 5.50% by $7.5 million.

Annual NT wages	Deduction	Payroll tax	Effective rate
$2,500,000	$2,500,000	$0	0.00%
$3,000,000	$2,250,000	$41,250	1.38%
$3,500,000	$2,000,000	$82,500	2.36%
$4,500,000	$1,500,000	$165,000	3.67%
$6,000,000	$750,000	$288,750	4.81%
$7,500,000	$0	$412,500	5.50%

Worked example: a Darwin employer with $3.5 million of wages

The deduction falls by $1 for every $2 above $2,500,000, so at $3,500,000 it is $2,500,000 − ($1,000,000 ÷ 2) = $2,000,000. Payroll tax is 5.50% × ($3,500,000 − $2,000,000) = $82,500 for the year.

Inside the taper band, every extra dollar of wages costs 8.25%: the 5.50% rate plus half a dollar of lost deduction. Employers expanding from around $3 million to $7 million feel this most, and should budget for it in hiring plans.

The 6.5% rate for large employers from 1 July 2026

From 1 July 2026, employers and groups with Australia-wide wages of $100 million or more pay 6.50% on their Territory taxable wages. Everything else (the threshold, the deduction settings, grouping and the return cycle) is unchanged. The test is applied to the group, so a small NT entity in a large national group can be liable at 6.50%. Crossing the line is a cliff for an NT-only employer: $99,999,999 of wages costs $5,500,000, while $100,000,000 costs $6,500,000.

The Territory Revenue Office expects the higher rate to be used in monthly returns during the year if Australia-wide wages are expected to reach $100 million. Previous-year wages are the starting point unless you give a current-year estimate, and any difference is settled in the annual return.

Registering and lodging through INTRA

Register for NT payroll tax through the Territory Revenue Office’s online system, INTRA (Integrated Revenue Application), in the month after your Australian taxable wages, or your group’s, first exceed $208,333 in a month. Once TRO approves the registration, registered users are told by email and can lodge returns and track payments in INTRA. Even with Australian wages above the threshold, you pay NT tax only on the NT share of your wages.

Tax must be received by the 21st of the month after the return period. If the 21st falls on a weekend or public holiday, payment is due the next business day. TRO’s own examples: July 2026 tax is due by Friday 21 August 2026, and October 2026 tax by Monday 23 November 2026. Allow for bank processing time, because the due date is when TRO must receive the money.

Common NT payroll tax mistakes

TRO lists three mistakes it sees often, and each is easy to avoid:

Paying twice for June: paying the amount calculated for June and then the annual return amount as well. Pay only the annual return amount, and pay any balance by 21 July without waiting for an assessment.
Declaring wages as exempt when they are not. For example, payouts of unused annual or sick leave and unused rostered days off are taxable.
Leaving out interstate wages. They set your deduction and the $100 million rate test, so omitting them understates your tax.

Contractors and grouping in the NT

The NT has used the nationally harmonised “relevant contract” model since 1 July 2009. Before then, each contractor had to be assessed against the common-law definition of an employee. Payments to contractors are now taxable unless a listed exclusion applies, and TRO publishes a relevant contract analysis schedule with its employer guide to help you work through each contract. Grouped businesses combine their wages to decide whether they must register and how large the deduction is.

If you overpay, TRO can carry the credit forward to reduce the next year’s returns instead of refunding it; tell TRO which you prefer.

Frequently asked questions

What is the NT payroll tax threshold?

$2,500,000 a year ($208,333 a month). Employers below it do not register or pay NT payroll tax.

When is NT payroll tax due?

By the 21st of the month after each return period, or the next business day if the 21st is a weekend or public holiday. The annual return balance is due by 21 July.

Do I lodge a June return for NT payroll tax?

Not a separate monthly one. Employers lodge monthly returns for every month except June, and an annual return for June that includes the annual adjustment for the whole year. Pay only the annual return amount, not a June amount as well.

How do I register for NT payroll tax?

Through INTRA, the Territory Revenue Office’s online system, in the month after your wages first exceed the monthly threshold. TRO emails registered users once the registration is approved.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.