Payroll tax in the Northern Territory applies when an employer's taxable wages are more than $2,500,000 a year, or $208,333 a month. The rate is 5.5%. From 1 July 2026, a higher rate of 6.5% applies to employers and payroll tax groups with Australia-wide wages of $100 million or more. Those figures are from the Territory Revenue Office, as of October 2026.
Most small Territory businesses will never pay it. But the threshold test catches interstate employers and grouped businesses that don't think of themselves as big NT employers. Here's how it works, from the Territory Revenue Office's own pages.
NT payroll tax rates and thresholds
| Period | Annual threshold | Monthly threshold | Rate |
|---|---|---|---|
| July 2026 to June 2027 | $2,500,000 | $208,333 | 5.5%, or 6.5% for Australia-wide wages of $100 million or more |
| July 2025 to June 2026 | $2,500,000 | $208,333 | 5.5% |
| July 2024 to June 2025 | $1,500,000 | $125,000 | 5.5% |
| July 2010 to June 2011 | $1,250,000 | $104,167 | 5.9% |
The threshold jumped from $1,500,000 to $2,500,000 from 1 July 2025, so an employer whose wages sit between those two figures no longer pays. The 5.5% rate has held since July 2011.
Who has to register
This is the bit people miss. The Territory Revenue Office says an employer must register in the NT if their total Australian taxable wages, or their group's, exceed $208,333 a month or $2,500,000 a year. The test uses Australia-wide wages, not NT wages. Once you're over it, you're only liable for payroll tax in the NT on the NT proportion of your wages.
So a business with most of its staff in Sydney and a handful in Darwin can still have to register in the NT. You register in the month after your wages first exceed the monthly threshold, through the Territory Revenue Office's INTRA system.
The new 6.5% rate from 1 July 2026
- It applies to an employer with Australia-wide wages of $100 million or more in a financial year.
- It also applies to every member of a payroll tax group whose combined Australia-wide wages are $100 million or more, even if the member's own wages are lower.
- It's applied during the year in monthly returns, based on whether wages are expected to reach $100 million. Previous year wages can be the starting point unless you give a current year estimate.
- Any difference is reconciled in the June annual return.
- Unlike the deduction, the $100 million threshold isn't prorated when an employer joins or leaves a group part-way through the year.
For everyone else, nothing changes: the 5.5% rate, the $2,500,000 threshold, the deduction settings and the grouping rules all stay as they were.
Returns and due dates
| Rule | Detail |
|---|---|
| Monthly returns | Every month except June |
| June | An annual return that includes the annual adjustment |
| Payment due | The 21st of the month after the return period |
| Weekend or public holiday | Due the next business day in the Territory |
| Annual payment | Pay any difference for the full year by 21 July |
| Small liabilities | If your estimated liability is $20,000 a year or less, the office may approve annual lodgement |
The office's own example: tax for July 2026 must be received by Friday 21 August 2026, and tax for October 2026 by Monday 23 November 2026, because 21 November 2026 is a Saturday. It also says payment processing times can affect when your payment arrives, so don't leave it to the due date.
A worked threshold check
Say a group employs staff in Darwin, Brisbane and Perth, and its total Australian taxable wages in a month are more than $208,333. The group is over the NT monthly threshold, so it must register in the NT, even if the Darwin team's wages are small on their own. It then pays NT payroll tax only on the NT share of its wages, at 5.5% unless its Australia-wide wages for the year reach $100 million. Groups are worked out under Part 5 of the Payroll Tax Act 2009, and the combined wages of all members decide both registration and the deduction.
Three mistakes the office warns about
- Paying twice by paying the June monthly figure and the annual return figure. Only pay the annual return amount.
- Declaring wages as exempt when they aren't.
- Leaving out interstate wages.
Contractors can also count. The NT has used the harmonised relevant contractor model since 1 July 2009, so some contractor payments are taxable wages. The office's Employers Guide to Payroll Tax in the Northern Territory explains how to test them.
If you employ across states, compare the rules in my guides to payroll tax in Australia and payroll tax in Queensland. For other NT employer rules, see long service leave in the NT.
My verdict
If you only employ in the Territory and your wages are well under $2,500,000, you can stop reading. If you employ across Australia, check your total Australia-wide wages every month, because that's the number the NT uses. And if you're part of a large group, assume the 6.5% rate applies until your adviser tells you otherwise.
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Frequently asked questions
What is the payroll tax threshold in the NT?
It's $2,500,000 a year, or $208,333 a month, as of October 2026.
What is the NT payroll tax rate?
It's 5.5%. From 1 July 2026, employers and groups with Australia-wide wages of $100 million or more pay 6.5%.
When is NT payroll tax due?
By the 21st of the month after the return period. If the 21st falls on a weekend or public holiday, it's due the next business day in the Territory.
When must I register for payroll tax in the NT?
In the month after your wages first exceed the monthly threshold. The test uses your total Australian taxable wages, or your group's.
Can I lodge NT payroll tax annually?
If your estimated liability doesn't exceed $20,000 a year, the Territory Revenue Office may approve annual lodgement.
Does the 6.5% rate apply to small members of a large group?
Yes. The test is applied at group level, so a member can pay 6.5% even if its own Australia-wide wages are under $100 million.
Did the NT payroll tax threshold change recently?
Yes. It rose from $1,500,000 to $2,500,000 a year from 1 July 2025, and stays at $2,500,000 for 2026 to 2027.
Do contractor payments count for NT payroll tax?
Some do. The NT has used the harmonised relevant contractor model since 1 July 2009, and the Territory Revenue Office's employers guide explains how to test them.
