ACT Payroll Tax Rate 2026-27
6.75% where Australia-wide wages are over $1.75 million and up to $20 million; 6.85% to $50 million; 7.35% to $100 million; 7.85% to $150 million; 8.75% above $150 million. The rate for your band applies to all ACT wages above the threshold amount.
Surcharges and concessions: Eligible universities are capped at 6.85%.
What changed on 1 July 2026: From 1 July 2026 the threshold fell from $2 million to $1.75 million and the general rate moved from a flat 6.85% (plus surcharges for $50m+ employers) to the banded 6.75%–8.75% scale.
ACT Payroll Tax Threshold
- Annual: $1,750,000 of Australian taxable wages
- Monthly: $145,833.33
The threshold is $1.75 million a year (it was $2 million until 30 June 2026), apportioned by the ACT share of Australian wages. It does not phase out.
How to Calculate ACT Payroll Tax
Find your band from total Australia-wide wages, then apply that single rate to ACT wages less the apportioned $1.75 million.
| ACT wages (all in ACT) | Threshold / deduction | Payroll tax | Effective rate |
|---|---|---|---|
| $1,500,000 | — | $0 | 0% |
| $3,000,000 | $1,750,000 | $84,375 | 2.81% |
| $5,000,000 | $1,750,000 | $219,375 | 4.39% |
| $10,000,000 | $1,750,000 | $556,875 | 5.57% |
Interstate example: an employer paying $2,000,000 in ACT out of $5,000,000 Australia-wide (40% in ACT) gets a threshold or deduction of $700,000 and pays $87,750 in ACT. It also pays payroll tax in the other states on the other $3m.
Who Must Register for ACT Payroll Tax
Apply to register within seven days after the end of the month in which your (or your group's) wages go over the threshold.
The test uses total Australian wages, including every business you are grouped with, so an employer with a small ACT payroll can still be liable. Grouped businesses add their wages together, and only the designated group employer claims the threshold.
ACT Payroll Tax Due Dates 2026-27
- Monthly returns: 7th of the following month for July–November and January–May; the December return is due 14 January (next working day if a weekend or public holiday).
- Annual reconciliation: 28 July 2027 (June wages go in the annual reconciliation)
Returns are lodged and paid online with the ACT Revenue Office. Late payment attracts interest and penalty tax.
What Counts as Wages for ACT Payroll Tax
Payroll tax law is harmonised across the states on what counts as wages, so the list is broadly the same everywhere. Taxable wages include:
- salaries, wages, commissions, bonuses and allowances;
- employer superannuation contributions;
- fringe benefits and employee share scheme benefits;
- director’s fees and termination payments such as paid-out leave;
- payments to many contractors (the “relevant contract” rules) and to employment agencies, unless an exemption applies.
Commonly exempt: government Paid Parental Leave, paid parental leave the employer provides (within limits), workers compensation payments, and the tax-free part of a genuine redundancy payment. Exemptions and their limits do differ by state, so check the revenue office’s list before you rely on one.
ACT Payroll Tax and Your Employees
Payroll tax is an on-cost, like super and WorkSafe ACT workers compensation premiums: the employer pays it on top of wages and none of it is withheld from pay. Employees who want their own figures should use the ACT pay calculator for take-home pay. For the full cost of a hire — salary, super, leave and payroll tax — use the employer cost calculator.
ACT Compared With Other States
| State | Rate | Annual threshold | Threshold phase-out / extras |
|---|---|---|---|
| NSW payroll tax | 5.45% | $1,200,000 | No phase-out; no surcharge |
| VIC payroll tax | 4.85% | $1,000,000 | Phases out $3m–$5m; 1.2125% regional rate; surcharges from $10m |
| QLD payroll tax | 4.75% | $1,300,000 | 4.95% above $6.5m; deduction nil at $10.4m; regional discount; mental health levy from $10m |
| WA payroll tax | 5.5% | $1,000,000 | Diminishes to nil at $7.5m |
| SA payroll tax | 4.95% | $1,500,000 | Rate phases in 0%–4.95% between $1.5m and $1.7m; $600k deduction |
| TAS payroll tax | 4% / 6.1% | $1,250,000 | 4% from $1.25m to $2m, 6.1% above |
| ACT payroll tax | 6.75% | $1,750,000 | Rate rises in bands to 8.75% above $150m |
| NT payroll tax | 5.5% | $2,500,000 | Tapers to nil at $7.5m; 6.5% from $100m |
Frequently Asked Questions
What is the ACT payroll tax rate for 2026-27?
6.75% where Australia-wide wages are over $1.75 million and up to $20 million; 6.85% to $50 million; 7.35% to $100 million; 7.85% to $150 million; 8.75% above $150 million. The rate for your band applies to all ACT wages above the threshold amount.
What is the ACT payroll tax threshold?
$1,750,000 a year of Australian taxable wages; the monthly figure is $145,833.33. The threshold is $1.75 million a year (it was $2 million until 30 June 2026), apportioned by the ACT share of Australian wages. It does not phase out.
How much ACT payroll tax is payable on a $3 million wage bill?
For an employer paying $3,000,000 of taxable wages, all in Australian Capital Territory, for the full 2026-27 year: the threshold or deduction is $1,750,000, leaving $1,250,000 taxed, and the payroll tax is $84,375 (2.81% of the wage bill).
When do I have to register for ACT payroll tax?
Apply to register within seven days after the end of the month in which your (or your group's) wages go over the threshold.
When is ACT payroll tax due?
Monthly returns: 7th of the following month for July–November and January–May; the December return is due 14 January (next working day if a weekend or public holiday). Annual return for 2026-27: 28 July 2027 (June wages go in the annual reconciliation).
Does ACT payroll tax come out of an employee's pay?
No. Payroll tax is paid by the employer to the ACT Revenue Office on top of wages. It is not withheld from pay and does not appear on a payslip, so it does not change an employee's take-home pay.
How these figures are worked out▼
Rates, thresholds and rules come from the ACT Revenue Office and were checked on 23 September 2026. The calculator and tables assume a full 2026-27 year of wages with the threshold claimed in full (by the designated group employer, for a group) and no exemptions. They do not model part-year employers or monthly returns; the ACT Revenue Office’s online return is the final word. The engine is tested against the worked examples the revenue offices publish.
Sources & References
- 1Australian Capital Territory payroll tax rates and thresholds— ACT Revenue Office
- 2Calculating payroll tax— ACT Revenue Office
- 3Lodging returns— ACT Revenue Office
- 4Lodging payroll tax returns— Payroll Tax Australia
Last verified: 23 September 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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