VIC Payroll Tax Calculator 2026-27
Estimate Victorian payroll tax for 1 July 2026 to 30 June 2027 from annual Australian taxable wages. The calculator uses the official SRO Victoria $1,000,000 threshold, 4.85% standard rate, 50% phase-out, and the mental health and COVID surcharges.
Estimate your 2026-27 Victorian payroll tax
Estimate
Notes
How Victorian payroll tax is worked out
Victoria charges ordinary payroll tax on Victorian taxable wages above the available tax-free threshold. From 1 July 2025 the published threshold is $1,000,000 and the standard rate is 4.85%. SRO Victoria’s current-rate page still listed those figures on 2026-11-01 for use from 1 July 2025 onward, so they are the FY2026-27 amounts used here.
Once Australian wages pass $3,000,000, the threshold is reduced at 50% using the official four-step method. A Victorian-only employer with $4,200,000 of wages for a full year keeps $400,000 of threshold under the 2026-27 constants, so ordinary tax is 4.85% of $3,800,000 ($184,300). Above $5,000,000 the threshold is nil.
The mental health and wellbeing surcharge, and the temporary COVID-19 debt surcharge (to 30 June 2033), each add 0.5% of Victorian wages above $10,000,000 and a further 0.5% above $100,000,000. Those steps shrink if you employed for only part of the year or paid interstate wages.
Victorian payroll tax rates 2026-27
| Item | Official figure |
|---|---|
| Annual tax-free threshold | $1,000,000 |
| Standard / regional rate | 4.85% / 1.2125% |
| Phase-out band and rate | $3,000,000–$5,000,000 at 50% |
| Mental health surcharge | 0.5% above $10,000,000, plus 0.5% above $100,000,000 |
| COVID-19 debt surcharge (to 30 June 2033) | Same steps as the mental health surcharge |
Sources: SRO Victoria current payroll tax rates (updated 29 September 2026), threshold and phase-out page, and payroll tax surcharges page. Checked on2026-11-01.
Frequently Asked Questions
What is the Victorian payroll tax threshold for 2026-27?
SRO Victoria’s current-rate table from 1 July 2025 onward (still the published table on 2026-11-01) sets a $1,000,000 annual tax-free threshold and a 4.85% standard rate. Eligible regional employers use 1.2125% instead. The monthly registration threshold is $83,333.
How does the threshold phase out?
If Australian wages are $3,000,000 or less, you keep the full (part-year) threshold. Between $3,000,000 and $5,000,000 the threshold is reduced at a 50% phase-out rate using SRO’s four-step method. Above $5,000,000 the threshold is nil.
What is the Victorian mental health levy on payroll tax?
The mental health and wellbeing surcharge is 0.5% of Victorian taxable wages above a $10,000,000 Australian-wage threshold, plus a further 0.5% above $100,000,000. The COVID-19 debt surcharge uses the same steps until 30 June 2033, so the combined extra is 1% then 2%. Both amounts are shown separately in the estimate.
Do grouping and a part-year start change the result?
Thresholds and surcharge steps are tested on the group’s combined Australian wages. Only the designated group employer claims the tax-free threshold. A part-year employer scales the threshold and the surcharge steps by days employed out of 365.
Is this an SRO Victoria assessment?
No. This page is general information. It is not a PTX Express calculation, not tax advice and not financial product advice. In line with ASIC’s general-information guidance, we do not recommend a specific financial product. Confirm regional eligibility and wage types with SRO Victoria.