Victoria payroll tax for 2026-27: 4.85% on wages above $1,000,000 a year. Enter your annual wages to estimate the tax.
VIC payroll tax by wage bill
| Annual wages | Tax-free threshold | Payroll tax | Effective rate |
|---|---|---|---|
| $500,000 | $1,000,000 | $0 | 0.00% |
| $1,000,000 | $1,000,000 | $0 | 0.00% |
| $1,500,000 | $1,000,000 | $24,250 | 1.62% |
| $2,000,000 | $1,000,000 | $48,500 | 2.43% |
| $3,000,000 | $1,000,000 | $97,000 | 3.23% |
| $4,000,000 | $500,000 | $169,750 | 4.24% |
| $5,000,000 | $0 | $242,500 | 4.85% |
| $10,000,000 | $0 | $485,000 | 4.85% |
A single employer, not grouped, paying all wages in VIC for the full year, metropolitan rate.
Threshold phase-out and surcharges
Employers with Australian wages between $3,000,000 and $5,000,000 get a reduced threshold: the full threshold less 50% of wages above $3,000,000. Above $5,000,000 there's no threshold.
Two surcharges apply to Victorian wages of employers with Australian wages over $10 million: a combined 1% on wages above $10 million and a combined 2% above $100 million.
Common questions
What is the payroll tax rate in VIC?
4.85% of taxable wages above the $1,000,000 annual tax-free threshold in 2026-27. Regional Victorian employers pay 1.2125%.
What is the VIC payroll tax threshold?
$1,000,000 a year. The monthly threshold is $83,333.
Is there a payroll tax phase-out in Victoria?
Yes. Between $3,000,000 and $5,000,000 of Australian wages the threshold shrinks by 50 cents per dollar, reaching nil at $5,000,000.
Does the calculator handle grouping and interstate wages?
No. It assumes one employer, not grouped, paying all its wages in the state for the full year. Grouped or interstate employers share the threshold; check the revenue office's rules or use its calculator.
Is payroll tax paid by employees?
No. It's a state tax on employers' wage bills; it doesn't come out of employees' pay.
Other states: NSW payroll tax. For employees, see the pay calculator.
Source: State Revenue Office Victoria, Payroll tax (current rates). Checked 2026-10-21. General information only, not tax advice.