VIC · 2026-27

Victoria payroll tax 2026-27

4.85% (1.2125% regional) above a $1,000,000 threshold that is phased out between $3m and $5m of Australian wages (scaled by days for a part year).

  • Official figures only, each with its source
  • Formulas from the payroll tax Acts
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$1,000,000annual threshold, 2026-27
4.85%rate (standard)
$83,333monthly threshold
21 Julyannual return due

Figures for 1 July 2026 to 30 June 2027 from the State Revenue Office Victoria and the joint revenue office portal, checked on 11 November 2026.

How VIC payroll tax is worked out

Victoria charges 4.85% on Victorian taxable wages above your threshold, or 1.2125% for regional employers.[1],[2] The full threshold is $1,000,000 a year ($83,333 a month).

The State Revenue Office works the threshold out in four steps:[3] (1) multiply $1,000,000 by your Victorian share of Australian wages and the share of the year you employed; (2) multiply $3 million by the same two shares; (3) subtract step 2 from your Victorian wages and multiply by the phase-out rate, 50% from 2025-26 onwards; (4) subtract step 3 from step 1. Schedule 1 of the Payroll Tax Act 2007 takes the lesser of step 4 and step 1, and treats a negative step 4 as nil.[4]

Because the $3 million is scaled by the days you employed, the phase-out starts at $3 million × days ÷ 365 of Australian wages and the threshold reaches nil at $5 million × days ÷ 365. For a full year that is $3 million and $5 million; for an employer that paid wages on only 183 days, $1.5 million and $2.5 million: with $2.9 million of Victorian wages over 183 days there is no threshold and the tax is $140,650.[4]

Employers and groups with Australian wages above $10 million also pay two surcharges on their Victorian wages above the shared thresholds (see below).[5]

D1        = $1,000,000 × share × days ÷ 365
phase-out = D1 − (VIC wages − $3,000,000 × share × days ÷ 365) × 50%, not below 0
threshold = the lesser of D1 and the phase-out amount
tax       = (VIC wages − threshold) × 4.85%   (1.2125% regional)

Official worked examples, checked against our calculator

The two official examples use the 2024-25 rules ($900,000 threshold, 45% phase-out); our calculator gives the same figures when run with those rules.

2024-25 rules ($900,000, 45%): Victorian wages $4.2m only, full year: threshold $360,000[3]

threshold / deduction: official $360,000 · our calculator $360,000

2024-25 rules: Victorian $1.5m + interstate $2m, 335 of 365 days: threshold $210,030[3]

threshold / deduction: official $210,030 · our calculator $210,029 (the office rounds each step)

VIC payroll tax calculator

Enter your Victoria wages and, if you pay wages elsewhere, the total for the other states: the calculator applies the formula above. For several states at once, use the multi-state calculator.

VIC payroll tax calculator, 2026-27

VIC
Wages paid in 2026-27 (AUD)

Estimated payroll tax: $0 · see the breakdown

Regional rates

Tip: you can type 1.5m or 800k. Wages include salaries, super, fringe benefits, directors' fees and other taxable payments.

Enter the wages you pay in each state or territory to see your threshold share and payroll tax.

  1. Type the taxable wages for the 2026-27 financial year (for example 1.5m).
  2. Change the days if you did not pay wages all year.
  3. Read the tax state by state, with the working.

Or try an example: VIC wages of $2,000,000 or $1.5m in VIC and $2.5m elsewhere.

This is an estimate for the whole 2026-27 financial year. The amount you must lodge is worked out by each revenue office. There is no official calculator we can link for VIC: see the State Revenue Office Victoria.
Formulas used
  1. Victoria: threshold = the lesser of $1,000,000 × share × days and that amount minus 50% of (Victorian wages − $3m × share × days), never below nil (so it shrinks from $3m × days and is nil from $5m × days); tax at 4.85% (1.2125% regional); surcharges 1% above $10m and another 1% above $100m (shared thresholds).

Where W is total Australian wages (yours or your group's), the share is the state's wages ÷ W and days is the days you paid wages ÷ 365. Method and sources.

Regional employers: 1.2125%

You pay 1.2125% instead of 4.85% if at least 85% of your Victorian taxable wages go to regional employees, who must do more than half of their work for you in regional Victoria (48 listed councils and six alpine resorts). For the annual reconciliation the 85% test applies to the whole year. In a group, each business is tested on its own.[6] See regional rates.

Surcharges above $10 million

The mental health and wellbeing surcharge and the COVID-19 debt temporary surcharge (until 30 June 2033) are each 0.5% when Australian wages are over $10 million (1% together) and each another 0.5% over $100 million (2% together). They apply only to Victorian taxable wages above the thresholds, which are shared by your Victorian share of wages and by days employed: for example, $80m in Victoria and $70m in NSW gives a first threshold of $5,333,333.33.[5] The calculator adds them as a separate line.

Monthly threshold and registration

The monthly threshold is $83,333.[1] You must register if you pay wages in Victoria and your taxable Australian wages exceed the threshold.[7]

Due dates

Monthly returns and payments are due by the 7th of the next month (or the next business day).[8] The annual reconciliation is due by 21 July.[9]

All states: see payroll tax due dates.

What changed in 2026-27

Nothing new on 1 July 2026. The threshold rose to $1,000,000 and the phase-out rate to 50% from 1 July 2025, and both apply to 2026-27.[1],[3]

VIC thresholds and rates since 2021-22

State2021-222022-232023-242024-252025-262026-27
VIC$700,000
4.85% (regional 1.2125%)[10]		$700,000
4.85% (regional 1.2125%)[10]		$700,000
4.85% (regional 1.2125%)[10]		$900,000
4.85% (regional 1.2125%); threshold phased out at 45% between $3m and $5m[3],[10]		$1,000,000
4.85% (regional 1.2125%); phase-out 50%[1],[3]		$1,000,000
4.85% (regional 1.2125%); phase-out 50%[1],[2]

Grouping

Businesses linked by ownership, control or shared employees are grouped and share one threshold. Read the grouping page of the State Revenue Office Victoria[11] and our grouping summary.

Official tools and pages

Victorian payroll tax: common questions

Questions people in Australia search for, answered from the official sources.

What is the Victorian payroll tax threshold for 2026-27?

$1,000,000 a year ($83,333 a month). With Australian wages above $3 million the threshold is phased out at 50%, and at $5 million there is none left (for a part year both limits are scaled by the days you employed).[1],[3],[4]

What is the regional payroll tax rate in Victoria?

1.2125%, instead of 4.85%, if at least 85% of your Victorian taxable wages are paid to regional employees, that is employees who do more than half of their work for you in regional Victoria.[6]

What is the Victorian mental health and wellbeing surcharge?

It is one of two payroll tax surcharges (the other is the COVID-19 debt temporary surcharge, until 30 June 2033). With Australian wages over $10 million each is 0.5% (1% in total); over $100 million each adds another 0.5% (2% in total). They apply only to Victorian taxable wages above the thresholds, which are shared by the Victorian share of wages and by days employed.[5]

How is payroll tax calculated in Victoria?

Take your Victorian taxable wages and subtract your threshold: $1,000,000 times your Victorian share of Australian wages and the share of the year you employed, reduced by 50% of the Victorian wages above $3 million (scaled the same way), never below nil. Then multiply by 4.85%, or 1.2125% for regional employers.[1],[3],[4]

Other states and territories

Sources

  1. Payroll tax (current rates) · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 29 September 2026”
  2. Payroll tax rates from 1 July 2025 (CSV) · State Revenue Office Victoria. checked 11 November 2026
  3. Threshold and phase-out rate · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 22 October 2026”
  4. Payroll Tax Act 2007 (Vic), authorised version 041, Schedule 1 cl 1, 1A, 5 and 7A · Victorian Legislation. checked 11 November 2026
  5. Payroll tax surcharges · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 22 October 2026”
  6. Regional employers · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 22 October 2026”
  7. Register for payroll tax · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 4 November 2026”
  8. Lodge your monthly return · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 22 October 2026”
  9. Lodge your annual reconciliation · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 22 October 2026”
  10. Payroll tax (historical rates) · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 29 September 2026”
  11. Grouping · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 22 October 2026”
  12. Payroll tax rates and thresholds (all states and territories) · Australian Revenue Offices (payrolltax.gov.au). checked 11 November 2026; page says “Last updated on: 28/10/2026”

Every figure on this page comes from the official pages above. We re-read them with the checks described here; if a page changes, the figure is re-checked before it stays on the site.

General information, not tax advice. Figures and formulas are taken from the official revenue office pages and legislation linked on each page. Payroll tax depends on facts this site cannot check (what counts as wages, exemptions, grouping, contractors). Confirm your liability with the revenue office of each state where you pay wages, or with a registered tax agent.