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$1.75m threshold, 6.75% to 8.75% ACT Revenue Office
Payroll Tax — Australian Capital Territory
The ACT charges 6.75% above a $1,750,000 threshold, rising through four more bands to 8.75% for the largest employers.
| What | ACT |
|---|---|
| Annual threshold | $1,750,000 |
| Rate | 6.75% to 8.75% |
| Paid to | ACT Revenue Office |
| Wages | Rate |
|---|---|
| More than $1,750,000 but not more than $20,000,000 | 6.75% |
| More than $20,000,000 but not more than $50,000,000 | 6.85% |
| More than $50,000,000 but not more than $100,000,000 | 7.35% |
| More than $100,000,000 but not more than $150,000,000 | 7.85% |
| More than $150,000,000 | 8.75% |
What you need to know
- Annual threshold: $1,750,000, for the rates applying on or after 1 July 2026.
- The entry rate is 6.75%, which is the highest starting rate of any state or territory.
- The rate steps up in four more bands — 6.85%, 7.35%, 7.85% and 8.75% — based on the wages of the employer or group.
- The ACT also has a payroll tax rebate for small businesses that take on new apprentices and trainees, which is separate from the threshold.
- As everywhere else, the threshold is tested on Australian taxable wages and shared within a group.
Why payroll tax surprises businesses
Payroll tax is a state tax on wages, and it is the tax most likely to catch a growing business by surprise for three reasons:
- The threshold is tested on Australia-wide wages, not just wages paid in that state. A business with staff in three states counts all of them.
- Groups share one threshold. Related entities are treated as one employer, so they do not each get their own tax-free amount.
- Registration and liability are separate. In several states you must register even when your wages are under the threshold and you owe nothing.
Frequently asked questions
What is the payroll tax threshold in the ACT?
$1,750,000 a year, for the rates applying on or after 1 July 2026.
What is the ACT payroll tax rate?
6.75% for wages over $1,750,000 and up to $20,000,000, stepping up to 8.75% above $150,000,000. It is the highest entry rate in the country.
Are there concessions?
Yes — the ACT runs a payroll tax rebate for eligible small businesses that employ new apprentices and trainees. It sits outside the threshold and rate table, so it has to be claimed separately. Check the ACT Revenue Office's current guide before relying on it.
Do I register below the threshold?
In several jurisdictions you can be required to register even when you owe nothing, because wages can cross the threshold during the year. The ACT publishes its own registration rules — check them against your own wage run.
Compare the other states
| State | Threshold | Rate |
|---|---|---|
| New South Wales | $1,200,000 | 5.45% |
| Victoria | $1,000,000 | 4.85% |
| Queensland | $1,300,000 | 4.75% / 4.95% |
| Western Australia | $1,000,000 | 5.5% |
| South Australia | $1,500,000 | 0% to 4.95% |
| Australian Capital Territory | $1,750,000 | 6.75% to 8.75% |
| Tasmania | $1,250,000 | 4% / 6.1% |
| Northern Territory | $2,500,000 | 5.5% / 6.5% |
Related
- Land tax calculator — the state tax on property instead of wages
- Company tax rates
- Take-home pay calculator
- Centrelink payment rates
From ACT Revenue Office, checked 12 October 2026. General information only — not tax advice.