Payroll tax in the ACT
This page describes the annual calculation for an employer that pays taxable wages throughout the financial year and is not part of a payroll tax group. Part-year employment and grouping can change the threshold and deduction. The Payroll Tax Act 2011 (ACT) governs payroll tax in the territory, with the threshold and rates set for each year by determination. The tables show the threshold and rates for 2025-26 and for 2026-27, when both changed.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Annual threshold
$1,750,000
- Rate when total wages are not more than the first band's top
- 6.75%
- Rate when total wages are more than the fourth band's top
- 8.75%
Payroll tax, 2026-27
1 July 2026 to 30 June 2027
| What it is | Value | Where it is set |
|---|---|---|
| Annual threshold | $1,750,000 | s 5(a) |
| Rate when total wages are not more than the first band's top | 6.75% | s 5, Table 1, row 1, rate |
| Top of the first band | $20,000,000 | s 5, Table 1, row 1, total wages |
| Rate when total wages are not more than the second band's top | 6.85% | s 5, Table 1, row 2, rate |
| Top of the second band | $50,000,000 | s 5, Table 1, row 2, total wages |
| Rate when total wages are not more than the third band's top | 7.35% | s 5, Table 1, row 3, rate |
| Top of the third band | $100,000,000 | s 5, Table 1, row 3, total wages |
| Rate when total wages are not more than the fourth band's top | 7.85% | s 5, Table 1, row 4, rate |
| Top of the fourth band | $150,000,000 | s 5, Table 1, row 4, total wages |
| Rate when total wages are more than the fourth band's top | 8.75% | s 5, Table 1, row 5, rate |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
Payroll tax, 2025-26
1 July 2025 to 30 June 2026
| What it is | Value | Where it is set |
|---|---|---|
| Annual threshold | $2,000,000 | s 5(a) |
| Rate | 6.85% | s 5, Table 1, row 1 |
| Surcharge applies when total wages are more than | $50,000,000 | s 5, Table 1, row 2, total wages |
| Surcharge rate above that amount | 0.5% | s 5, Table 1, row 2, surcharge |
| Higher surcharge applies when total wages are more than | $100,000,000 | s 5, Table 1, row 3, total wages |
| Higher surcharge rate | 1% | s 5, Table 1, row 3, surcharge |
| Total wages above which 2025-26 is taxed in two halves | $150,000,000 | s 8(2) |
| Second half of the split year starts | 1 January 2026 | Sch 2A s 2A.1, definition of R, para (b), period |
| Rate for the second half of the split year | 8.75% | Sch 2A s 2A.1, definition of R, para (b), rate |
Each value is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
How it works in Australian Capital Territory
- The ACT Revenue Office administers payroll tax in the territory. Tax is payable only once an employer's Australian wages for the year pass the threshold, and the deduction is scaled to the territory's share of those wages.
- In 2025-26 one rate applied to taxable territory wages, with a surcharge added to it once total Australian wages passed the first level in the table and a larger surcharge above the second.
- For 2025-26 only, the Act taxes an employer with total wages above the split-year amount in two halves: the first at that year's top rate with surcharge, the second, from the date in the table, at its own higher rate.
- The threshold fell at the start of 2026-27. Because the deduction is the threshold scaled to the territory's share of Australian wages, the deduction fell with it.
- Also from 2026-27, the surcharges are folded into five rate bands. Total Australian wages decide the band, from the lowest rate for smaller wage bills up to the top rate.
- Each band's rate applies to all of the employer's taxable territory wages, not only to wages above the band's lower edge, so passing the top of a band lifts the rate on every dollar.
General information
Sources
- Taxation Administration (Amounts and Rates-Payroll Tax) Determination 2025 (ACT), DI2025-161
ACT Parliamentary Counsel's Office. 2025-26, released 30 June 2025. Checked 15 October 2026.
© ACT Government, ACT Legislation Register Licence: ACT Legislation Register copyright policy: copyright, ACT Government.
- Payroll Tax Act 2011 (ACT), Republication No 20
ACT Parliamentary Counsel's Office. Republication No 20, effective 26 December 2025, released 26 December 2025. Checked 15 October 2026.
© ACT Government, ACT Legislation Register Licence: ACT Legislation Register copyright policy: copyright, ACT Government.
- Taxation Administration (Amounts and Rates-Payroll Tax) Determination 2026 (ACT), DI2026-151
ACT Parliamentary Counsel's Office. From 1 July 2026, released 30 June 2026. Checked 15 October 2026.
© ACT Government, ACT Legislation Register Licence: ACT Legislation Register copyright policy: copyright, ACT Government.
- Payroll tax
ACT Revenue Office. Page modified 9 September 2026 (dcterms.modified metadata), released 9 September 2026. Checked 15 October 2026.
© Australian Capital Territory Licence: ACT Revenue Office copyright notice: copyright, Australian Capital Territory (unaltered reproduction for personal or non-commercial use).
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