ACT Payroll Tax Calculator 2025-26
Calculate your ACT payroll tax liability based on your total wages. Uses ACT Revenue Office rates effective from 1 July 2025.
Total taxable wages paid to ACT employees for the financial year. Includes salaries, wages, commissions, bonuses, and superannuation.
2025-26 ACT Payroll Tax
Rate: 6.85%
Threshold: $2,000,000
Surcharges: +0.1% (>$20M), +0.5% (>$50M), +1% (>$100M)
Employers with national wages >$150M pay 8.75% flat with no deduction.
Enter your total ACT wages to calculate payroll tax.
Payroll tax applies to businesses with annual ACT wages over $2 million.
ACT payroll tax rates 2025-26
| Item | 2025-26 |
|---|---|
| Base rate | 6.85% |
| Tax-free threshold | $2,000,000 |
| Surcharge (>$20M) | +0.10% (total 6.95%) |
| Surcharge (>$50M) | +0.50% (total 7.35%) |
| Surcharge (>$100M) | +1.00% (total 7.85%) |
| Flat rate (>$150M)* | 8.75% (no deduction) |
Payroll tax is calculated only on wages that exceed the threshold. If your total ACT wages are $2.5 million, you pay tax on $500,000 (the amount over $2 million).
*The 8.75% flat rate for employers with national wages over $150 million applies from 1 January 2026. For the first half of 2025-26 (1 July – 31 December 2025), the +1.00% surcharge tier applies instead.
ACT payroll tax surcharges
ACT employers with national wages exceeding $20 million pay a surcharge on their ACT taxable wages. Businesses with national wages over $150 million pay a flat rate of 8.75% with no threshold deduction (from 1 January 2026).
| National wages | Surcharge | Total rate |
|---|---|---|
| Up to $20 million | 0% | 6.85% |
| $20M – $50 million | +0.10% | 6.95% |
| $50M – $100 million | +0.50% | 7.35% |
| $100M – $150 million | +1.00% | 7.85% |
| Over $150 million | N/A | 8.75% flat (no deduction)* |
Example
A national business with:
- ACT wages: $3,000,000
- Total national wages: $80,000,000
Adjusted ACT threshold:
$2,000,000 × ($3M ÷ $80M) = $75,000
Taxable wages: $3,000,000 - $75,000 = $2,925,000
ACT payroll tax:
Base tax: $2,925,000 × 6.85% = $200,363
Surcharge: $2,925,000 × 0.50% = $14,625
Total: $214,988
What wages are taxable?
ACT payroll tax applies to most payments made to employees and some contractors:
Taxable wages include:
- Salaries and wages
- Commissions
- Bonuses and incentive payments
- Fringe benefits (taxable value × 1.8868)
- Superannuation contributions
- Allowances
- Directors' fees
- Contractor payments (in some cases)
Exempt wages include:
- Apprentice and trainee wages (conditions apply)
- Wages paid by charities (some exemptions)
- Parental leave payments
- Workers compensation payments
- Genuinely independent contractor payments
Interstate wages and threshold adjustment
If your business pays wages in multiple states, your ACT tax-free threshold is reduced proportionally. The formula is:
ACT threshold × (ACT wages ÷ Total Australian wages)
Example
A business pays:
- ACT wages: $800,000
- NSW wages: $1,200,000
- Total Australian wages: $2,000,000
Adjusted ACT threshold:
$2,000,000 × ($800,000 ÷ $2,000,000) = $800,000
ACT payroll tax:
($800,000 - $800,000) × 6.85% = $0
Lodgement and payment
Monthly lodgement
ACT payroll tax returns are lodged monthly.
- Due date: 7th of the following month (or next business day)
- Method: Lodge via the ACT Revenue Office online portal
Key dates 2025-26
| Date | Event |
|---|---|
| 7th of each month | Previous month's return due |
| 28 July 2026 | Annual reconciliation due |
Frequently asked questions
What is the ACT payroll tax rate for 2025-26?
The ACT base payroll tax rate is 6.85% for 2025-26. A 0.10% surcharge applies for national wages over $20 million, rising to +0.50% over $50 million and +1.00% over $100 million. From 1 January 2026, businesses with national wages over $150 million pay a flat 8.75% with no threshold deduction.
What is the ACT payroll tax threshold?
The ACT payroll tax threshold is $2,000,000 for 2025-26. Businesses only pay payroll tax on wages exceeding this amount. The threshold may be reduced for interstate employers.
How do ACT payroll tax surcharges work?
Surcharges are based on total national wages: +0.10% for wages over $20M, +0.50% for wages over $50M, +1.00% for wages over $100M. From 1 January 2026, businesses with wages over $150M pay a flat 8.75% rate on all ACT wages with no threshold deduction.
When are ACT payroll tax returns due?
ACT payroll tax returns are lodged monthly. Lodge through the ACT Revenue Office online portal.
Are there any exemptions from ACT payroll tax?
Certain wages are exempt, including wages paid by some charitable organisations and wages for approved apprentices and trainees. General practitioner wages may also qualify for exemptions under specific ACT programs.
ACT Payroll Tax Guides
See payroll tax on common wage totals and compare nearby thresholds.
Move from payroll tax estimates into branding-ready payroll paperwork
Once you understand the state payroll tax exposure, move into the branding-ready document set for payslips, timesheets, expense claims, and cleaner supporting payroll records.