ACT Payroll Tax Calculator 2026-27
Calculate your ACT payroll tax liability based on total wages. Uses ACT Revenue Office 2026-27 rates: a $1,750,000 threshold and a tiered general rate that rises with your Australia-wide wages.
Rates and thresholds are applied for the selected financial year.
Total taxable wages paid to ACT employees for the financial year. Includes salaries, wages, commissions, bonuses, and superannuation.
2026-27 ACT Payroll Tax
Entry rate: 6.75%
Threshold: $1,750,000
Rate structure: 6.75% (>$1.75M), 6.85% (>$20M), 7.35% (>$50M), 7.85% (>$100M), 8.75% (>$150M)
From 1 July 2026 the threshold fell to $1.75M and a tiered general rate replaced the old flat-rate and surcharge model. Universities are capped at 6.85%.
Enter your total ACT wages to calculate payroll tax.
Payroll tax generally applies when annual Australia-wide wages exceed $1,750,000.
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ACT payroll tax rates 2026-27
| Australia-wide wages | General rate (2026-27) |
|---|---|
| More than $1.75M – $20M | 6.75% |
| More than $20M – $50M | 6.85% |
| More than $50M – $100M | 7.35% |
| More than $100M – $150M | 7.85% |
| More than $150M | 8.75% |
Payroll tax is calculated only on wages that exceed the $1,750,000 threshold. If your total ACT wages are $2.5 million, you pay tax on $750,000. The general rate that applies is set by your total Australia-wide (group) wages, not just your ACT wages.
The $1.75M threshold and tiered general rate took effect on 1 July 2026, replacing the previous $2M threshold and flat 6.85% + surcharge structure. Eligible universities are capped at 6.85%.
ACT general rate tiers
From 1 July 2026 the ACT charges a single general rate that steps up with your total Australia-wide (group) wages. The rate applies to your ACT wages above the $1.75M threshold — there is no separate surcharge.
| Australia-wide wages | General rate | vs 6.75% entry |
|---|---|---|
| Up to $20 million | 6.75% | — |
| $20M – $50 million | 6.85% | +0.10% |
| $50M – $100 million | 7.35% | +0.60% |
| $100M – $150 million | 7.85% | +1.10% |
| Over $150 million | 8.75% | +2.00% |
Example — national business
ACT wages $3,000,000 · national wages $80,000,000 (general rate: 7.35%, the $50M–$100M tier)
Adjusted threshold: $1,750,000 × ($3M ÷ $80M) = $65,625
Taxable wages: $3,000,000 − $65,625 = $2,934,375
Payroll tax: $2,934,375 × 7.35% = $215,677
What wages are taxable?
Taxable wages include
Exempt wages include
Interstate wages and threshold adjustment
If your business pays wages in multiple states, your ACT tax-free threshold is reduced proportionally:
$1,750,000 × (ACT wages ÷ Total Australian wages)
Example — multi-state employer
ACT wages $800,000 · NSW wages $1,200,000 · total AU wages $2,000,000
Adjusted threshold: $1,750,000 × ($800,000 ÷ $2,000,000) = $700,000
ACT payroll tax: ($800,000 − $700,000) × 6.75% = $6,750
Lodgement and payment
What is the ACT payroll tax rate for 2026-27?
From 1 July 2026 the ACT uses a tiered general rate set by your Australia-wide (group) wages: 6.75% up to $20 million, 6.85% over $20M, 7.35% over $50M, 7.85% over $100M and 8.75% over $150M. This replaced the old flat 6.85% + surcharge model. Eligible universities are capped at 6.85%.
What is the ACT payroll tax threshold?
The ACT payroll tax threshold is $1,750,000 from 1 July 2026 (reduced from $2,000,000). Businesses only pay payroll tax on wages exceeding this amount. The threshold is reduced proportionally for interstate employers.
How do the ACT payroll tax rate tiers work?
From 1 July 2026 the ACT no longer uses a base-plus-surcharge model. A single general rate applies, set by your Australia-wide wages: 6.75% (up to $20M), 6.85% ($20M–$50M), 7.35% ($50M–$100M), 7.85% ($100M–$150M) and 8.75% (over $150M). The rate applies to your ACT wages above the $1.75M threshold.
What were the ACT payroll tax rates for 2025-26?
For 2025-26 (before the 1 July 2026 restructure) the ACT threshold was $2,000,000 with a base rate of 6.85%, plus a large-employer surcharge for Australia-wide wages over $50 million (+0.5%, i.e. 7.35%) and over $100 million (+1.0%, i.e. 7.85%), and a flat 8.75% with no threshold deduction over $150 million. Switch the calculator above to 2025-26 to use these settings.
When are ACT payroll tax returns due?
ACT taxpayers lodge at the monthly or annual frequency agreed in the Self Service Portal. Monthly returns for July–November and January–May are generally due on the 7th of the following month; the December return is due 14 January, and annual reconciliation is due 28 July.
Are there any exemptions from ACT payroll tax?
Certain wages are exempt, including wages paid by some charitable organisations and wages for approved apprentices and trainees. General practitioner wages may also qualify for exemptions under specific ACT programs.
Tax Accuracy & Sources
Estimates ACT payroll tax using the selected year's threshold and rate structure, including the 2026-27 tiered general rate. It does not cover exempt wages, charitable exemptions, the university cap, or contractor classification.
ACT Payroll Tax Guides
See payroll tax on common wage totals and compare nearby thresholds.