Victoria payroll tax calculator
Estimate a full-year Victorian employer's payroll tax and surcharges for 2025-26 or 2026-27, using its Victorian wages and its total taxable wages nationally.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Work out the payroll tax
Choose the financial year and enter the wages. The result updates as you type.
For the whole year, in whole dollars
Including the wages paid in Victoria
General information only. It works out an estimate from the wages you enter and doesn't take your circumstances into account.
Payroll tax for 2026-27
Enter both wages
Show working
Enter both wages to see the working.
How it works
Victoria charges payroll tax only when an employer's Australian taxable wages for the year exceed the threshold, and then only on the wages it pays in Victoria.
Up to the phase-out point, the deduction is the threshold, or the Victorian share of it for an employer that also pays wages interstate. Beyond that point the threshold is cut by the phase-out share of the Australian wages above it, and the employer's deduction is its Victorian share of what remains. At high enough wages nothing remains, and the rate falls on every dollar of Victorian wages.
Two surcharges sit on top of payroll tax for big national wage bills. The mental health and wellbeing surcharge starts once Australian wages pass its threshold and is charged on the Victorian wages above the Victorian share of that threshold, before any deduction is subtracted; past a second, higher threshold its rate rises. For both years covered here, the COVID-19 debt surcharge equals the mental health and wellbeing surcharge, so it adds the same amount again.
Every figure behind these steps, from the threshold to the surcharge rates, is listed in the table below as set by the Payroll Tax Act 2007 (Vic).
Thresholds and rates
| Setting | 2025-26 | 2026-27 |
|---|---|---|
| Annual threshold | $1,000,000 | $1,000,000 |
| Australian wages above which the deduction phases out | $3,000,000 | $3,000,000 |
| Deduction phase-out rate, on Australian wages above the phase-out point | 50% | 50% |
| Rate | 4.85% | 4.85% |
| Mental health and wellbeing surcharge: Australian wages above | $10,000,000 | $10,000,000 |
| Mental health and wellbeing surcharge rate on wages above the threshold share | 0.5% | 0.5% |
| Second surcharge threshold: Australian wages above | $100,000,000 | $100,000,000 |
| Surcharge rate on all Victorian wages once Australian wages pass the second threshold, less the first surcharge rate on each threshold share | 1% | 1% |
Office of the Chief Parliamentary Counsel Victoria, Payroll Tax Act 2007 (Vic), Authorised Version No. 041 Checked 15 Oct 2026.
What the result assumes
- The business paid or owed wages in Australia throughout the whole financial year and doesn't belong to a payroll tax group.
- Both wage amounts are taxable wages with exempt wages removed, and the Australian total takes in the Victorian wages.
- Working out which payments are taxable, and which state taxes each one, is outside what the calculator does.
- The general rate applies throughout, as the regional employer rate isn't calculated.
- For an employer with interstate wages, the Victorian share is applied to the reduced threshold, which is the Act's formula, and the State Revenue Office Victoria's step-by-step method arrives at the same deduction.
- What you see is the liability for the full year, settled through the annual reconciliation, and not any monthly instalment.
Sources
- Payroll Tax Act 2007 (Vic), Authorised Version No. 041
Office of the Chief Parliamentary Counsel Victoria. Authorised Version No. 041, as at 1 May 2026, released 1 May 2026. Checked 15 October 2026.
© State of Victoria (Government Printer) Licence: Victorian Legislation copyright notice: copyright, State of Victoria.
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Questions about this calculator
Something else on your mind? Ask us directly.
Why does the deduction shrink for larger Victorian employers?
Are the surcharges worked out on the same wages as payroll tax?
Why do the two surcharge lines match?
Does it cover the regional employer rate?
Is anything due in Victoria if no wages are paid there?
General information