Victoria payroll tax, 2026–27
| Annual threshold | $1,000,000 |
| Monthly threshold | $83,333 |
| Rate | 4.85% |
| Rate for regional Victorian employers | 1.2125% |
| Threshold phase-out | 50% of Australian wages between $3m and $5m |
| Surcharges (Australian wages over $10m) | 1% combined; 2% over $100m |
| Annual reconciliation for 2026–27 due | 21 July 2027 |
The State Revenue Office lists these rates as applying from 1 July 2025 onward; its rates page was last updated on 29 September 2026. The estimator uses the 4.85% rate and doesn't cover the regional rate or the surcharges.
Checked on 22 October 2026 against SRO: payroll tax current rates · SRO: threshold and phase-out rate · SRO: monthly returns · SRO: annual reconciliation. Rates can change each 1 July. Check your figures with the revenue office before you lodge.
Two examples
Wages paid only in Victoria, inside the phase-out
A business pays $4,000,000 of taxable wages in Victoria for the full year and none elsewhere. That's $1,000,000 over $3m, so the threshold drops by half of that to $500,000. Tax is 4.85% of $3,500,000: about $169,750 for the year.
Wages paid in Victoria and Queensland
A business pays $1,800,000 in Victoria and $600,000 in Queensland, so $2,400,000 in Australia. That is under $3m, so there is no phase-out. Victoria is 75% of that, so its threshold is $750,000. Victorian tax is 4.85% of $1,050,000: about $50,925. Queensland 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.
VIC payroll tax questions
What is the Victorian payroll tax threshold for 2026–27?
$1,000,000 a year ($83,333 a month), according to the State Revenue Office. It's reduced if your Australian wages are over $3m, if you pay wages interstate, or if you only paid wages for part of the year.
How does the Victorian threshold phase-out work?
If your (or your group's) Australian wages are between $3m and $5m, the threshold is reduced by 50% of the wages over $3m. Above $5m there is no threshold. The SRO says the 50% rate applies from 2025–26 onward; it was 45% in 2024–25.
What is the Victorian payroll tax rate?
4.85% of taxable wages above the threshold, or 1.2125% for regional Victorian employers. Employers with Australian wages over $10m also pay surcharges.
When are Victorian payroll tax returns due?
Employers on a monthly cycle pay by the 7th of the next month, or the next business day, and report wages every month even when no tax is owed. There is no June monthly return: the annual reconciliation is due by 21 July, so 21 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.