VIC payroll tax calculator
Victorian payroll tax applies at 4.85% on wages above an annual threshold of $1,000,000 — but unlike NSW, that threshold isn’t fixed. It shrinks once your total Australian wages pass $3,000,000, and disappears entirely at $5,000,000. Enter your wages below to see the threshold you actually qualify for.
Estimated payroll tax
Rates last updated:Enter the wages you paid in each state to see an estimated payroll tax figure for NSW, VIC and QLD side by side.
How the Victorian threshold phase-out works
Most businesses think of a payroll tax threshold as a fixed tax-free amount. In Victoria, that’s only true below $3,000,000 in total Australian wages. Above that, the threshold reduces by 50% for every dollar of Victorian wages over an apportioned phase-out point, until it reaches zero at $5,000,000. In practice, this means larger employers effectively lose their tax-free threshold altogether — the calculator above applies this automatically.
Interstate wages reduce the threshold too
On top of the phase-out, the threshold is apportioned by wage share if you pay wages outside Victoria — the same principle as NSW and QLD. A business paying wages in Victoria and interstate gets a threshold proportional to its Victorian share of total Australian wages, before the phase-out reduction is applied. See how interstate apportionment works for the general mechanics.
Grouping
Grouped Victorian entities share a single threshold across the whole group, assessed against the group’s combined Australian wages. Read our grouping explainer for how the tests for common control, common employees and tracing of interests work.
Regional employers and large-employer surcharges
Eligible regional Victorian employers pay a discounted rate, and large employers with more than $10 million in Australian wages face additional surcharges on top of the standard rate. Neither is modelled in this calculator in v1 — if either applies to you, treat the figure above as a floor, not a final answer.
Frequently asked questions
- What is the Victorian payroll tax threshold?
- The full annual threshold is $1,000,000 for 2026-27, up from $900,000 the year before. It only applies in full below $3,000,000 in total Australian wages.
- What is the Victorian payroll tax rate?
- 4.85% for metropolitan employers on taxable wages above the threshold. Eligible regional employers pay a reduced rate — this calculator does not currently model the regional rate.
- Why does the threshold "phase out"?
- Once your total Australian wages pass $3,000,000, the threshold reduces at 50% for every dollar of Victorian wages above an apportioned point, reaching zero once Australian wages hit $5,000,000. Large employers effectively get no tax-free threshold at all.
- Does Victoria have any surcharges on top of the standard rate?
- Yes — a mental health and wellbeing surcharge and a COVID-19 debt temporary surcharge apply to large employers with more than $10 million in Australian wages, adding up to 2% combined for the largest employers. This is not modelled in the calculator above, which targets small and medium employers below that threshold.
- Is this the official Victorian payroll tax calculator?
- No. This is an independent tool, not affiliated with the State Revenue Office Victoria. Confirm your final liability with the SRO or a registered tax agent before lodging.
Source: State Revenue Office Victoria — threshold and phase-out rate. Last verified 2026-08-12.