Business tax

Payroll Tax Calculator ACT

Work out your Australian Capital Territory payroll tax for 2026. The ACT threshold is $1.75 million and the rate is 6.75%. Enter your total annual Australian taxable wages for the tax payable. Free, no signup.

Australian Capital Territory ratesVerified at revenue.act.gov.au, July 2026$1.75 million threshold

Your payroll

State or territory

Total annual Australian taxable wages

Whole group, all states. Include gross wages, super and taxable fringe benefits.

Payroll tax is a tax on employers, not employees. It applies once your total Australian wages pass the state threshold. Working out what lands in a worker's account instead? Use the take-home pay calculator.

Payroll tax in ACT

$1,500,000 is at or below the Australian Capital Territory threshold of $1,750,000, so no payroll tax is payable.

Under the ACT threshold

Total Australian taxable wages$1,500,000

Tax-free thresholdAustralian Capital Territory annual$1,750,000

Payroll tax rate6.75%

Payroll tax payableAt or below threshold$0

Effective rate0.00%

How this is worked out. Tax is 6.75% of the wages above the $1.75 million annual threshold, for wages up to $20 million. For the official figure, use the Australian Capital Territory payroll tax calculator.

Higher rates apply to larger payrolls: 6.85% above $20 million, 7.35% above $50 million, 7.85% above $100 million and 8.75% above $150 million. This tool applies the general 6.75%.

Uses your total group Australian taxable wages, treated as a single state for simplicity. Grouping and interstate wages split the threshold between states. Rates verified at revenue.act.gov.au, July 2026. General information, not financial advice. Confirm with the revenue office before you lodge.

Simon Chadwick

Founder, Orbit Money

Method: ACT payroll tax threshold and rate from revenue.act.gov.auUpdated: 17 July 2026Sources: revenue.act.gov.au

How payroll tax works in Australian Capital Territory

Payroll tax is a state tax on employers. In Australian Capital Territory (ACT) you pay it on your total Australian taxable wages once they pass the annual threshold of $1.75 million, charged at 6.75%. The Australian Capital Territory charges 6.75% on wages above a $1.75 million annual threshold, the highest headline rate in the country. It is not deducted from your workers, and it is separate from PAYG withholding. The wages that count include gross salaries, superannuation, allowances, bonuses, commissions, directors' fees and most taxable fringe benefits. Enter your own wages in the calculator above for the figure that matches your business.

ACT payroll tax threshold and rate 2026

These are the headline figures for Australian Capital Territory. The calculator above applies them, plus any taper, for you.

Australian Capital Territory	Figure
Annual tax-free threshold	$1.75 million
Payroll tax rate	6.75%
Tax on $1,500,000 of wages	Nil (under threshold)
Tax on $2,000,000 of wages	$16,875

Tax is 6.75% of the wages above the $1.75 million annual threshold, for wages up to $20 million.

Higher rates apply to larger payrolls: 6.85% above $20 million, 7.35% above $50 million, 7.85% above $100 million and 8.75% above $150 million. This tool applies the general 6.75%.

Grouping and interstate wages

Two things catch ACT employers out. First, grouping: businesses that share owners, directors or employees are grouped and must add their wages together under a single Australian Capital Territory threshold. Second, interstate wages: if you pay staff in more than one state, Australian Capital Territory gives you only a share of its $1.75 million threshold, based on the proportion of your wages paid here. This calculator treats your wages as Australian Capital Territory alone, which is the right starting point for a single-state business. If you employ across borders or are grouped, use the Australian Capital Territory revenue office calculator or your accountant.

Frequently asked questions

What is the payroll tax threshold in ACT?

The Australian Capital Territory payroll tax threshold is $1.75 million of total Australian taxable wages a year. Pay less than that across your whole business or group and you generally owe no ACT payroll tax, though you may still need to register. The Australian Capital Territory charges 6.75% on wages above a $1.75 million annual threshold, the highest headline rate in the country.

What is the payroll tax rate in ACT?

The Australian Capital Territory payroll tax rate is 6.75%. Tax is 6.75% of the wages above the $1.75 million annual threshold, for wages up to $20 million. On $2 million of total Australian wages, a ACT employer pays about $16,875. Enter your own wages in the calculator above for the exact figure.

How much is payroll tax in ACT?

In Australian Capital Territory you pay no payroll tax on $1,500,000 of wages, since that is at or below the threshold for 2026. Payroll tax applies only once your total Australian taxable wages pass the $1.75 million threshold, and it is charged at 6.75%. The calculator above works out your exact ACT payroll tax from your wages.

Who has to pay payroll tax in ACT?

Employers pay ACT payroll tax, not employees. You become liable once your total Australian taxable wages pass the Australian Capital Territory threshold of $1.75 million. Wages counted include gross salaries, superannuation, allowances, bonuses, commissions, directors' fees and taxable fringe benefits. Grouped businesses add their wages together and share one threshold.

Employing in another state? Use the all-states payroll tax calculator to compare payroll tax across NSW, VIC, QLD, WA, SA, TAS, the NT and the ACT.

Related tools

Payroll Tax Calculator NSW

$1.2 million threshold, 5.45% rate for New South Wales.

Payroll Tax Calculator VIC

$1 million threshold, 4.85% (regional 1.2125%) rate for Victoria.

Payroll Tax Calculator QLD

$1.3 million threshold, 4.75% / 4.95% rate for Queensland.

Payroll Tax Calculator WA

$1 million threshold, 5.5% rate for Western Australia.

Payroll Tax Calculator (all states)

Compare payroll tax across every Australian state and territory.

Take-Home Pay Calculator (AU)

The employee side: what lands in a worker's account after tax.

Other states

NSW VIC QLD WA SA TAS NT

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About the author

Simon Chadwick

Founder of Orbit Money

Simon is the founder of Orbit Money, a tool that helps people and businesses track subscriptions and recurring spend. He builds Orbit's free money calculators and writes about tax and personal finance for Australian and UK readers.