Australian Capital Territory payroll tax, 2026–27
| Tax-free threshold | $1,750,000 a year ($145,833.33 a month) |
| Threshold before 1 July 2026 | $2,000,000 a year |
| Rate (Australian wages over $1.75m, up to $20m) | 6.75% |
| Rate over $20m, up to $50m | 6.85% |
| Rate over $50m, up to $100m | 7.35% |
| Rate over $100m, up to $150m | 7.85% |
| Rate over $150m | 8.75% |
| Monthly returns due | 7th of the next month (December: 14 January); no June return |
| Annual reconciliation for 2026–27 due | 28 July 2027 |
These figures are from the ACT Revenue Office's payroll tax pages. The rate is set by Australian wages, at group level if you're grouped. The estimator only covers the 6.75% rate, so it's for businesses with Australian wages of $20m or less.
Checked on 22 October 2026 against ACT Revenue Office: about payroll tax · ACT Revenue Office: calculating payroll tax. Rates can change each 1 July. Check your figures with the revenue office before you lodge.
Two examples
Wages paid only in the ACT
A business pays $3,000,000 of taxable wages in the ACT for the full year and none elsewhere. Tax is 6.75% of $1,250,000 (the wages over $1.75m): about $84,375 for the year.
Wages paid in the ACT and NSW
A business pays $1,800,000 in the ACT and $600,000 in NSW, so $2,400,000 in Australia. The ACT is 75% of the wages, so its threshold is $1,312,500. ACT tax is 6.75% of $487,500: about $32,906. NSW payroll tax is worked out separately; the estimator above shows both.
These businesses are made up. Each one is a single employer, not part of a group.
ACT payroll tax questions
What is the ACT payroll tax threshold for 2026–27?
$1,750,000 a year, or $145,833.33 a month, from 1 July 2026. It was $2m before that. It's reduced if you only paid wages for part of the year.
What is the ACT payroll tax rate?
6.75% while Australian wages are $20m or less. It rises with Australian wages: 6.85% over $20m, 7.35% over $50m, 7.85% over $100m and 8.75% over $150m.
How does the threshold work if I pay wages interstate?
Multiply $1,750,000 by your ACT wages divided by your Australian wages. Tax is the rate on your ACT wages above that amount.
When are ACT payroll tax returns due?
By the 7th of the next month, except December, which is due 14 January. There's no June return: June goes in the annual reconciliation, due 28 July, so 28 July 2027 for 2026–27.
Prepare the return from Xero Payroll
Quarterday is in development. It will connect to Xero (read-only) and prepare payroll tax by state for you to check and lodge.