Payroll Tax on $1,000,000 in Victoria (2026-27)
Payroll Tax Breakdown
| Total wages | $1,000,000 |
| Adjusted threshold | $1,000,000.00 |
| Taxable wages | $0.00 |
| Base payroll tax | $0.00 |
| Surcharges | $0.00 |
| Total annual payroll tax | $0.00 |
| Effective rate | 0% |
Assumes all Australian wages are paid in VIC and no regional discounts apply. Thresholds can be apportioned when wages are paid across multiple states.
Compare Nearby Wage Levels in VIC
| Total Wages | Payroll Tax | Effective Rate |
|---|---|---|
| $1,000,000 | $0.00 | 0% |
| $2,000,000 | $48,500.00 | 2.425% |
Compare Payroll Tax Across States
Payroll tax at this wage level
At wages under $1.5 million, you fall below the threshold in many states — ACT ($1.75M), SA ($1.5M), QLD ($1.3M), TAS ($1.25M), NSW ($1.2M), VIC ($1M) and WA ($1M) all have thresholds in this range. For a single-state employer at this level, payroll tax may be zero or minimal. The biggest risk is inadvertently crossing the threshold through hiring or wage increases mid-year.
Registration threshold
You must register for payroll tax once your total Australian wages exceed (or are expected to exceed) the state threshold within a financial year. Registration is required within 7 days. Failing to register and pay can result in penalties and interest backdated to when the liability first arose.
Watch for threshold crossing mid-year
If you hire staff or increase wages partway through the year, you may cross the threshold for the full year — not just from the date of crossing. Payroll tax is calculated on annual wages, so a December hire can mean payroll tax applies from the preceding July.
Typical businesses: Small businesses with 5-15 employees, sole traders with a few staff, early-stage startups, and small professional practices.
Payroll Tax in Victoria
Victoria has the most complex payroll tax structure: a threshold of $1,000,000 (increased from $900,000 on 1 July 2025), a base rate of 4.85%, a reduced regional rate of 1.2125% for regional employees, and surcharge tiers. Employers with national wages above $10 million pay a combined 1% surcharge (mental health and wellbeing levy plus COVID debt levy), rising to a combined 2% above $100 million. Victoria also applies a mental health and wellbeing levy.
How to calculate payroll tax on $1,000,000 in VIC
- Start with total annual wages of $1,000,000 in Victoria.
- Apply the adjusted threshold ($1,000,000.00) to identify taxable wages.
- Calculate base payroll tax and then add any applicable surcharges for VIC.
- Confirm the annual payroll tax result ($0.00) and compare against nearby wage levels or other states.
VIC Payroll Tax Calculator
Need a precise payroll tax calculation for Victoria? Use the VIC calculator for interstate wages, regional rates, and surcharge tiers.