Australian Capital Territory Payroll Tax Calculator 2026–27
Australian Capital Territory payroll tax for 2026–27: 6.75% on wages above the $1,750,000 threshold. Calculate annual and monthly liability.
Updated 2026-10-03 · Australian Capital Territory official rates
| Monthly (approx.) | $7,031 |
| Main rate | 6.75% |
| Threshold | $1,750,000 |
Your result is ready
Payroll tax 2026–27: one rate (by Australia-wide wages) on all wages above $1.75m
| Value over | Tax |
|---|---|
| $0 | $0 |
| $1,750,000 | $0 + 6.75% of the excess over $1,750,000 |
| $20,000,000 | $1,250,125 + 6.85% of the excess over $20,000,000 |
| $50,000,000 | $3,546,375 + 7.35% of the excess over $50,000,000 |
| $100,000,000 | $7,712,625 + 7.85% of the excess over $100,000,000 |
| $150,000,000 | $12,971,875 + 8.75% of the excess over $150,000,000 |
Key facts
- From 1 July 2026 the ACT payroll tax threshold is $1.75 million a year ($145,833.33 a month), down from $2 million ($166,666.66 a month) before 1 July 2026.
- For 2026–27 the ACT payroll tax rate depends on total Australia-wide wages: 6.75% for wages above $1.75 million up to $20 million, 6.85% above $20 million to $50 million, 7.35% above $50 million to $100 million, 7.85% above $100 million to $150 million and 8.75% above $150 million.
- The ACT rate is not marginal: the single rate set by the employer’s (or group’s) Australia-wide wages applies to all ACT taxable wages above the threshold, so tax rises sharply when wages cross a tier boundary.
- An ACT-only employer paying $3 million in annual wages owes 6.75% × ($3,000,000 − $1,750,000) = $84,375 in payroll tax for 2026–27.
- In 2025–26 the ACT charged 6.85% above the $2 million threshold, plus a 0.5% surcharge for wages above $50 million and a 1.0% surcharge above $100 million; from 1 January 2026 wages above $150 million were taxed at 8.75%.
- The ACT payroll tax rate for eligible universities (ACU, Charles Sturt, ANU, UNSW and the University of Canberra) is capped at 6.85% in 2026–27.
- Employers paying wages in other states or territories claim only the ACT share of the threshold: ACT wages divided by Australia-wide wages, multiplied by the threshold.
- ACT monthly payroll tax returns are due by the 7th of the following month (14 January for December), and June wages go in the annual reconciliation return due 28 July.
- An employer must apply to register for ACT payroll tax within seven days after the end of the month in which its wages first exceed the threshold.
- Taxable wages in the ACT include salaries, bonuses, allowances, superannuation contributions, director’s fees, fringe benefits and payments to many contractors, while paid parental leave and workers compensation payments are exempt.
Other states
- New South WalesNSW
- VictoriaVIC
- QueenslandQLD
- Western AustraliaWA
- South AustraliaSA
- TasmaniaTAS
- Northern TerritoryNT
ACT payroll tax for 2026–27: what changed on 1 July 2026
ACT payroll tax changed more on 1 July 2026 than in any other state. The threshold dropped to $1,750,000, and the old single rate with surcharges was replaced by a tiered table in which one rate, set by your Australia-wide wages, applies to all ACT wages above the threshold. Small and mid-sized employers now pay 6.75%, slightly below the previous headline rate, but more of their payroll is taxable because the threshold is lower.
| Australia-wide wages | Rate on all ACT wages above the threshold |
|---|---|
| $1,750,000 to $20,000,000 | 6.75% |
| $20,000,000 to $50,000,000 | 6.85% |
| $50,000,000 to $100,000,000 | 7.35% |
| $100,000,000 to $150,000,000 | 7.85% |
| Over $150,000,000 | 8.75% |
The tier cliff: why one extra dollar can cost thousands
Because the rate is not marginal, crossing a tier boundary re-prices every taxable dollar. An ACT-only employer with exactly $20,000,000 of wages pays $1,231,875. One more dollar of wages moves it to the 6.85% tier and the bill becomes $1,250,125, which is $18,250 more. Larger groups face the same effect at $50 million, $100 million and $150 million. If you are close to a boundary, check your estimate of Australia-wide wages for the year before you set the rate in your monthly returns.
Interstate employers: claiming only the ACT share of the threshold
A Canberra business with $5,000,000 of Australia-wide wages, $2,000,000 of which is paid in the ACT, claims $2,000,000 ÷ $5,000,000 × $1,750,000 = $700,000 of the threshold. Its ACT payroll tax is 6.75% × ($2,000,000 − $700,000) = $87,750. That is noticeably more than the $16,875 an ACT-only employer with the same ACT wages would pay, which is why the calculator’s ACT-only result understates the bill for multi-state businesses.
ACT payroll tax registration and employer status
Register using the ACT Revenue Office’s payroll tax registration and notification form within 7 days after the end of the month in which your Australia-wide wages (or your group’s) exceed the monthly threshold of $145,833.33. The same form is used to report changes, cancel or reactivate a registration, and the ACT Revenue Office’s registration circular PTA071.1 sets out the detail.
When you register and lodge you must declare your employer status. Getting it wrong can mean overpaying or underpaying, and the Commissioner may add penalty tax and interest on an underpayment.
- Independent: not in a group, and claims the threshold.
- Designated Group Employer (DGE): the only group member allowed to claim the threshold, and it must apply to be the DGE.
- Joint Return Lodger (JRL): a DGE that lodges for itself and at least one other ACT group member. A group cannot have two DGEs or two JRLs.
- Group Member: a member whose wages are included in the JRL’s return, so it does not lodge itself.
- Group Member Lodging Itself: lodges its own returns, claims no threshold and pays at the rate set by the group’s Australia-wide wages.
Contractors, contractor deductions and medical practices
Payments under a relevant contract are taxable, excluding GST, along with any super or fringe benefits provided to the contractor. The ACT’s exemptions cover contracts where labour is secondary to supplying the contractor’s goods, services you do not normally need from a contractor who serves the public, owner-drivers carrying goods in their own vehicle (bicycle couriers are usually treated as employees), and contractors running a genuine independent business that serves the public, for which you must apply for a Commissioner’s determination. A contract that includes any non-exempt work loses the exemption entirely.
The ACT also lets you take a flat deduction for the non-labour component of some contracts, at rates by trade set out in Revenue Circular PTA018, when the contractor supplies the materials or equipment. Contractors’ own running costs, such as their vehicle, phone or home office, cannot be deducted.
Since 1 July 2025, designated medical practices do not pay payroll tax on wages or contractor payments to GPs for bulk-billed services, services under Part V of the Veterans’ Entitlements Act 1986 or services under the Workers Compensation Act 1951. This replaced a temporary amnesty for practices with contracted GPs, which applied until 30 June 2025 and required at least 65% bulk billing. Separately, the ACT waived unpaid payroll tax on payments to contracted GPs for periods up to 30 June 2023.
Frequently asked questions
What is the ACT payroll tax threshold for 2026–27?
$1,750,000 a year, or $145,833.33 a month, down from $2 million before 1 July 2026. Interstate employers claim only the ACT share.
Is the ACT payroll tax rate marginal?
No. The rate set by your Australia-wide wages applies to all ACT taxable wages above the threshold, so crossing a tier boundary raises tax on the whole amount.
How do I register for ACT payroll tax?
Use the ACT Revenue Office’s payroll tax registration and notification form, and declare your employer status (independent, designated group employer or group member). The same form is used later to report changes or cancel.
Do GP practices pay payroll tax in the ACT?
From 1 July 2025, designated medical practices are exempt on GP wages and contractor payments for bulk-billed and certain other services; other GP services remain taxable.
What is a Designated Group Employer?
The one member of a payroll tax group that claims the threshold for the group. It must apply to the ACT Revenue Office to take that role.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- ACT Revenue Office: About payroll tax – thresholds and 2026-27 / 2025-26 rate tables
- ACT Revenue Office: Calculating payroll tax – tax-free threshold steps 1 to 3
- ACT Legislation Register: Taxation Administration (Amounts and Rates—Payroll Tax) Determination 2026, DI2026-151
- ACT Legislation Register: Taxation Administration (Amounts and Rates—Payroll Tax) Determination 2025, DI2025-161 (2025–26: $2m threshold, 6.85% plus 0.5%/1.0% surcharges; repealed 1 July 2026)
- ACT Revenue Office: Payroll tax registration and employer status
- ACT Revenue Office: Contractors (relevant contracts, deductions and exemptions)
- ACT Revenue Office: Designated medical practices with General Practitioners