Australia’s state and territory taxes — stamp duty, land tax, and payroll tax — vary considerably across jurisdictions. There is no single “best” state for tax because the answer depends on your situation: a property investor, a business owner, and an employee face very different state tax burdens. This article presents a factual comparison of the key state taxes to help you understand the differences.
This is a factual comparison only and does not constitute a recommendation about where to live, invest, or operate a business. Personal circumstances, state services, property markets, and many other factors matter beyond tax alone.
Stamp Duty Comparison — Buying a $750,000 Property
Stamp duty on a $750,000 property purchase (existing home, non-first-home-buyer, owner-occupier) varies significantly by state:
| State | Stamp duty (approx.) | Notes |
|---|---|---|
| NSW | ~$28,700 | Progressive rates; first home buyers exempt up to $800k |
| VIC | ~$40,070 | Rates higher in VIC for established homes |
| QLD | ~$22,750 | First home buyers exempt up to $700k |
| WA | ~$27,765 | First home buyers exempt up to $450k |
| SA | ~$35,330 | No first home buyer stamp duty concession (grant instead) |
| TAS | ~$28,595 | Concession for first home buyers |
| ACT | ~$24,000 | ACT is transitioning from stamp duty to broad-based land tax |
| NT | ~$34,700 | Concessions available for first home buyers |
Figures are indicative only — stamp duty is calculated on a sliding scale and exact amounts depend on the purchase price and buyer category. Always use the relevant state revenue calculator for accurate figures.
First Home Buyer Relief
All states and territories offer some form of first home buyer stamp duty concession or exemption:
| State | First home buyer stamp duty relief |
|---|---|
| NSW | Full exemption up to $800k; concession $800k–$1M |
| VIC | Full exemption up to $600k; concession $600k–$750k |
| QLD | Full exemption up to $700k; concession $700k–$800k |
| WA | Full exemption up to $450k; concession $450k–$600k |
| SA | No stamp duty exemption (First Home Owner Grant instead) |
| TAS | 50% concession for established homes (no cap) |
| ACT | Full exemption for eligible buyers (income tested) |
| NT | Full exemption up to $650k |
Land Tax Comparison — Annual Tax on Investment Properties
Land tax is an annual tax on the unimproved land value of investment properties (principal residences are generally exempt). Thresholds and rates vary enormously:
| State | General threshold | Rate above threshold | Notes |
|---|---|---|---|
| NSW | $1,075,000 | 1.6% (progressive to 2%) | Based on unimproved land value at 31 Dec |
| VIC | $300,000 | 0.2%–2.55% (progressive) | Lowest threshold in Australia |
| QLD | $600,000 | 0.5%–2.75% (progressive) | Based on land value at 30 Jun |
| WA | $300,000 | 0.09%–2.67% (progressive) | |
| SA | $668,000 | 0.5%–2.4% (progressive) | |
| TAS | $100,000 | 0.45%–1.5% (progressive) | Very low threshold |
| ACT | No traditional land tax (rates-based system) | — | All ACT land owners pay rates |
| NT | No land tax | — | NT does not impose land tax |
Key observations:
- Victoria has the lowest land tax threshold in Australia at $300,000 — meaning investors with a single investment property on a land value above $300k pay land tax
- Northern Territory has no land tax at all
- ACT operates a different system — all property owners (including owner-occupiers) pay general rates based on the AUV of their land, but there is no separate “land tax” applying only to investors
Payroll Tax Comparison — Employing Staff
| State | Annual threshold | Rate |
|---|---|---|
| NSW | $1,200,000 | 5.45% |
| VIC | $700,000 | 4.85% |
| QLD | $1,300,000 | 4.75% |
| WA | $1,000,000 | 5.5% |
| SA | $1,500,000 | 4.95% |
| TAS | $1,250,000 | 4.0% |
| ACT | $2,000,000 | 6.85% |
| NT | $1,500,000 | 5.5% |
Key observations:
- Tasmania has the lowest payroll tax rate (4.0%) among the states with significant economies
- ACT has the highest threshold ($2M) and the highest rate (6.85%) — but the high threshold means fewer businesses pay it
- Victoria has the lowest threshold ($700,000) — businesses that grow beyond $700k in wages in VIC enter the payroll tax net sooner than anywhere else
Summary — No Single “Best” State
| Situation | States with lower relative burden |
|---|---|
| Buying a home (stamp duty) | QLD, WA (lower absolute rates); ACT (transition away from stamp duty) |
| Investment property investor (land tax) | NT (no land tax), ACT (different system), NSW (high threshold) |
| Small employer (payroll tax) | ACT (high threshold), SA and NT (high thresholds), TAS (lowest rate) |
| First home buyer | NSW and QLD (generous exemptions at typical purchase prices) |
Related Articles
- State and Territory Taxes — Overview
- Land Tax Australia — State-by-State Guide
- Payroll Tax Australia — Complete Guide
- State and Territory Tax hub
- Taxes hub
Frequently Asked Questions
Does moving to a lower-tax state actually reduce my tax? For ongoing taxes like land tax and payroll tax, yes — the state where the property is located (for land tax) or where wages are paid (for payroll tax) determines which jurisdiction’s rules apply. Changing your state of residence does not affect income tax (which is federal) but does affect state-specific taxes on assets and employment in that jurisdiction.
Is the ACT really moving away from stamp duty? Yes. The ACT has been progressively replacing stamp duty with a broad-based land tax (applied to all properties via general rates) since 2012 under a 20-year reform plan. By the time the reform is complete, ACT property buyers will pay less stamp duty on purchase but higher ongoing rates. This is considered a more economically efficient tax structure.
Which state has the most property investor-friendly tax system? This depends heavily on the value and number of properties held. The Northern Territory’s absence of land tax is notable for investors, but NT property values and rental yields are subject to other considerations. A tax agent or financial adviser can model the tax implications of property investment in different states for your specific situation.
This article provides a general factual comparison of state and territory taxes. Tax rates, thresholds, and concessions change with state budgets. Always verify current figures with the relevant state revenue authority. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.