Land Tax Australia — State-by-State Guide (2026)
Land tax is an annual charge levied by state and territory governments on the unimproved land value of investment properties. Unlike stamp duty (paid once at purchase), land tax is paid every year you hold a property — making it a significant ongoing cost for property investors.
Key facts:
- Land tax applies to investment properties only in most states — your principal place of residence is generally exempt
- Each state sets its own rates, thresholds and exemptions
- Land tax is calculated on the unimproved (land) value — not the total property value
- Investors who own multiple properties aggregate all land values
Why Land Tax Matters for Investors
Land tax is not collected at purchase and is easy to overlook when budgeting. For investors holding a $600,000 investment property with a land value of $350,000:
| State | Approximate Annual Land Tax |
|---|---|
| NSW | ~$7,000–$9,000 |
| VIC | ~$5,600–$8,000 |
| QLD | ~$3,500–$5,000 |
| SA | ~$3,000–$5,000 |
| WA | ~$1,500–$2,500 |
| ACT | ~$4,000–$7,000 |
These are broad estimates — actual amounts depend on site value (not total property value), which varies significantly.
NSW Land Tax (2026)
NSW land tax is administered by Revenue NSW.
Tax-free threshold: $1,075,000 (approximate — indexed annually)
- Properties with aggregated land value below the threshold: $0 land tax
- Above threshold: $100 + 1.6% of the taxable value up to $6,571,000; 2.0% above
NSW land tax key features:
- Principal place of residence: exempt
- Primary production land: exempt
- Land held in trust: surcharge rate of 0.25% may apply in addition to standard rate
- Surcharge land tax: Additional 4% surcharge on residential land owned by foreign persons (in addition to standard rates)
Calculate at: revenue.nsw.gov.au
See Land Tax NSW — Rates and Thresholds for a full breakdown.
VIC Land Tax (2026)
Victoria’s land tax is administered by the State Revenue Office VIC.
Tax-free threshold: $300,000 (general)
- Trusts: $25,000 surcharge threshold (different from individual/company threshold)
VIC land tax rates (2026):
| Taxable Land Value | Rate |
|---|---|
| $300,001–$600,000 | $375 + 0.2% over $300,000 |
| $600,001–$1,000,000 | $975 + 0.5% over $600,000 |
| $1,000,001–$1,800,000 | $2,975 + 0.8% over $1,000,000 |
| $1,800,001–$3,000,000 | $9,375 + 1.3% over $1,800,000 |
| Over $3,000,000 | $25,00 + 2.55% over $3,000,000 |
VIC also levies a temporary land tax windfall gains tax on rezonings.
VIC unique features:
- Absentee owner surcharge: additional 4% for absentee owners (foreign residents)
- Trusts: flat $375 + 0.375% of the whole value (no threshold)
See Land Tax VIC — Rates and Thresholds for a full breakdown.
QLD Land Tax (2026)
Queensland land tax is administered by the Queensland Revenue Office.
Tax-free threshold:
- Individual: $600,000
- Company/trust: $350,000
QLD land tax rates (individuals):
| Land Value | Rate |
|---|---|
| $0–$600,000 | Nil |
| $600,001–$1,000,000 | $500 + 1.0 cent per dollar over $600,000 |
| $1,000,001–$3,000,000 | $4,500 + 1.65 cents per dollar over $1,000,000 |
| Over $3,000,000 | $37,500 + 2.25 cents per dollar over $3,000,000 |
QLD does not levy a separate foreign purchaser land tax surcharge at the same rate as NSW/VIC — but foreign investors pay additional duty at purchase. Verify current position with Queensland Revenue Office.
SA Land Tax (2026)
South Australia land tax is administered by RevenueSA.
Tax-free threshold: $538,000 (approximate — verify for current year)
- Principal place of residence: exempt
- Primary production: exempt
SA land tax rates:
| Site Value | Rate |
|---|---|
| Up to threshold | Nil |
| Threshold–$1,098,600 | $0 + 0.5% over threshold |
| $1,098,601–$1,479,400 | $2,802 + 1.0% over $1,098,600 |
| Over $1,479,400 | $6,610 + 2.0% over $1,479,400 |
WA Land Tax (2026)
Western Australia land tax is administered by the Department of Finance WA.
Tax-free threshold:
- Individual: $300,000
- Company/trust: $300,000
WA land tax rates (individual):
| Land Value | Rate |
|---|---|
| $0–$300,000 | Nil |
| $300,001–$420,000 | 0.25% |
| $420,001–$1,000,000 | 0.50% |
| $1,000,001–$2,200,000 | 0.80% |
| Over $2,200,000 | 1.40% |
WA has relatively lower land tax compared to NSW, VIC and QLD — one factor making WA attractive for property investors.
ACT Land Tax (2026)
The ACT levies an annual land tax as part of its broader property tax system, which is transitioning away from stamp duty.
ACT land tax:
- Applies to all residential rental properties (not principal residence)
- Calculated based on Average Unimproved Value (AUV) and Average Value (AV)
- Owner-occupied properties: exempt
ACT land tax is administered by the ACT Revenue Office.
See Stamp Duty vs Land Tax — ACT Reform for context on the ACT’s long-term transition.
TAS Land Tax (2026)
Tasmania imposes land tax on investment properties.
Tax-free threshold: $25,000 (very low — almost all investment properties are taxable)
TAS land tax rates:
| Land Value | Rate |
|---|---|
| $0–$25,000 | Nil |
| $25,001–$350,000 | 0.45% of the whole value |
| Over $350,001 | 1.50% of the whole value |
The Tasmanian threshold and rates are subject to government review.
Principal Place of Residence Exemption — All States
In all states and territories, your principal place of residence is exempt from land tax. This is a critical distinction:
- Owner-occupiers: No land tax payable on your home
- Property investors: Land tax payable annually on all investment land holdings
If you move out of your home and rent it out, you become liable for land tax from the following tax year. If you move back in, you may regain the principal residence exemption — but rules around brief absences and partial exemptions vary by state.
Land Tax and Property Investment Returns
Land tax is a significant ongoing cost that must be factored into property investment analysis. For a negatively geared investment property in NSW or VIC with a land value of $500,000+:
- Land tax could reduce net rental return by $5,000–$15,000+ per year
- Land tax is a deductible expense for income tax purposes (reducing your tax liability)
- Net impact depends on your marginal tax rate and the deductibility of the expense
This is general information only — consult a tax adviser for analysis of your specific situation.
Frequently Asked Questions
Do I pay land tax on my home in Australia? No — principal places of residence are exempt from land tax in all Australian states and territories.
Is land tax calculated on the purchase price or the land value? Land tax is calculated on the unimproved land value (what the land would be worth without the buildings on it). This is assessed annually by the state valuation authority and is generally lower than the total property value.
Do I pay land tax on multiple investment properties? Yes — most states aggregate all your investment land holdings. A threshold applies to the total, not each individual property.
Is land tax deductible? Yes — land tax on investment properties is a deductible expense for Australian income tax purposes.
Related Guides
This article provides general information about land tax in Australia. Rates, thresholds and exemptions are set by state governments and change annually. Always verify with the relevant state revenue authority. Land tax may have tax deductibility implications — consult a registered tax agent or accountant. For advice tailored to your situation, speak with a licensed financial adviser. Find one through MoneySmart.