What is the Victorian payroll tax rate?

Victoria applies a general payroll tax rate of 4.85% on taxable wages above the tax-free threshold. Eligible regional employers pay a reduced rate of 1.2125% on their Victorian wages, designed to support businesses in regional areas.

What is the Victorian payroll tax threshold?

The annual tax-free threshold in Victoria is $900,000 (raised from $700,000 effective 1 July 2024). Only wages above this threshold are taxed, and the threshold is prorated if you are an employer for only part of the year.

Who qualifies for the regional rate?

A business qualifies as a regional employer if it pays at least 85% of its Victorian taxable wages to employees who perform their work mainly in regional Victoria. The reduced 1.2125% rate then applies to its Victorian wages.

Which wages count toward Victorian payroll tax?

Taxable wages include salaries and wages, superannuation contributions, bonuses, commissions, allowances, fringe benefits and termination payments paid for work performed in Victoria. Grouped businesses share a single threshold.

Is my data sent anywhere?

No. The calculation runs entirely in your browser using the published Victorian rates and threshold. Nothing you enter is transmitted or stored.

Australia VIC Payroll Tax Calculator

Victoria charges employers payroll tax on taxable wages above an annual tax-free threshold. The general rate is 4.85%, eligible regional employers pay a reduced 1.2125%, and the annual threshold is $900,000. This free calculator estimates your Victorian payroll tax and prorates the threshold for part-year employers.

How it works

Victorian payroll tax applies a flat marginal rate above a tax-free threshold:

threshold      = $900,000 × (days operated / 365)
taxable excess = max(0, total VIC wages − threshold)
rate           = 4.85% general  |  1.2125% regional employer
payroll tax    = taxable excess × rate

Only wages above the (prorated) threshold are taxed. If your total taxable wages are at or below the threshold, no payroll tax is due. The regional rate is roughly a quarter of the metropolitan rate and applies only to qualifying regional employers.

Example

A metropolitan employer pays $1,500,000 in Victorian taxable wages over a full year. The full $900,000 threshold applies, leaving a taxable excess of $600,000. Payroll tax is $600,000 × 4.85% = $29,100. A regional employer with the same wages would pay $600,000 × 1.2125% = $7,275.

Notes

This is a single-entity estimate using the standard Victorian rates and threshold. It does not model business grouping, interstate wage apportionment, or the exact regional-employer eligibility test. Confirm your liability with the State Revenue Office Victoria before lodging.