Business tax

Payroll Tax Calculator VIC

Work out your Victoria payroll tax for 2026. The VIC threshold is $1 million and the rate is 4.85% (regional 1.2125%). Enter your total annual Australian taxable wages for the tax payable. Free, no signup.

Victoria ratesVerified at sro.vic.gov.au, July 2026$1 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 VIC

$24,250

Payroll tax on $1,500,000 of wages in Victoria. Effective rate 1.62% of total wages.

Over the VIC threshold

Total Australian taxable wages$1,500,000

Tax-free thresholdVictoria annual$1,000,000

Payroll tax rate4.85%

Payroll tax payableAbove threshold$24,250

Effective rate1.62%

How this is worked out. Tax is 4.85% of wages above the deduction. The $1 million deduction phases out between $3 million and $5 million of wages. For the official figure, use the Victoria payroll tax calculator.

Metropolitan rate shown. Regional Victorian employers pay 1.2125%. A mental health and wellbeing surcharge plus a COVID-debt surcharge add up to 1% on Victorian wages above $10 million ($100 million for the top tier). This tool does not add those.

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 sro.vic.gov.au, July 2026. General information, not financial advice. Confirm with the revenue office before you lodge.

Simon Chadwick

Founder, Orbit Money

Method: VIC payroll tax threshold and rate from sro.vic.gov.auUpdated: 17 July 2026Sources: sro.vic.gov.au

How payroll tax works in Victoria

Payroll tax is a state tax on employers. In Victoria (VIC) you pay it on your total Australian taxable wages once they pass the annual threshold of $1 million, charged at 4.85% (regional 1.2125%). Victoria charges 4.85% above a $1 million deduction, which phases out between $3 million and $5 million of wages. Regional employers pay 1.2125%. 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.

VIC payroll tax threshold and rate 2026

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

Victoria	Figure
Annual tax-free threshold	$1 million
Payroll tax rate	4.85% (regional 1.2125%)
Tax on $1,500,000 of wages	$24,250
Tax on $2,000,000 of wages	$48,500

Tax is 4.85% of wages above the deduction. The $1 million deduction phases out between $3 million and $5 million of wages.

Grouping and interstate wages

Two things catch VIC employers out. First, grouping: businesses that share owners, directors or employees are grouped and must add their wages together under a single Victoria threshold. Second, interstate wages: if you pay staff in more than one state, Victoria gives you only a share of its $1 million threshold, based on the proportion of your wages paid here. This calculator treats your wages as Victoria alone, which is the right starting point for a single-state business. If you employ across borders or are grouped, use the Victoria revenue office calculator or your accountant.

Frequently asked questions

What is the payroll tax threshold in VIC?

The Victoria payroll tax threshold is $1 million of total Australian taxable wages a year. Pay less than that across your whole business or group and you generally owe no VIC payroll tax, though you may still need to register. Victoria charges 4.85% above a $1 million deduction, which phases out between $3 million and $5 million of wages. Regional employers pay 1.2125%.

What is the payroll tax rate in VIC?

The Victoria payroll tax rate is 4.85% (regional 1.2125%). Tax is 4.85% of wages above the deduction. The $1 million deduction phases out between $3 million and $5 million of wages. On $2 million of total Australian wages, a VIC employer pays about $48,500. Enter your own wages in the calculator above for the exact figure.

How much is payroll tax in VIC?

In Victoria you pay about $24,250 on $1,500,000 of wages for 2026. Payroll tax applies only once your total Australian taxable wages pass the $1 million threshold, and it is charged at 4.85% (regional 1.2125%). The calculator above works out your exact VIC payroll tax from your wages.

Who has to pay payroll tax in VIC?

Employers pay VIC payroll tax, not employees. You become liable once your total Australian taxable wages pass the Victoria threshold of $1 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 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 SA

$1.5 million threshold, 4.95% rate for South 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 QLD WA SA TAS NT ACT

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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.