Land tax is an annual state and territory tax levied on the unimproved value of land you own — excluding, in most states, your principal place of residence. It applies to investment properties, vacant land, commercial property, and holiday homes. Each state sets its own threshold and rate. Victoria has the lowest threshold in Australia ($300,000), making land tax a significant consideration for Victorian property investors in particular.
What Is Land Tax?
Land tax is calculated on the unimproved capital value (UCV) or site value of land — the value of the land itself, excluding any buildings or improvements on it. It is an annual tax assessed by each state’s revenue authority on a set date each year (typically 31 December or 30 June, depending on the state).
Land tax is cumulative across all taxable land you own in a state. If you own three investment properties in NSW, the land values of all three are added together and the combined total is used to calculate your NSW land tax liability.
Land Tax Rates by State (FY2025–26)
New South Wales
Assessment date: 31 December
Administered by: Revenue NSW
| Land value | Rate |
|---|---|
| $0 – $1,075,000 | $0 (below threshold) |
| $1,075,001 – $6,571,000 | $100 + 1.6% of amount over $1,075,000 |
| Over $6,571,000 | $88,036 + 2.0% of amount over $6,571,000 |
Premium rate applies to principal residences valued over $4,616,000.
Victoria
Assessment date: 31 December
Administered by: State Revenue Office VIC
| Land value | Rate |
|---|---|
| $0 – $300,000 | $0 (below threshold) |
| $300,001 – $600,000 | $375 + 0.2% of amount over $300,000 |
| $600,001 – $999,999 | $975 + 0.5% of amount over $600,000 |
| $1,000,000 – $1,799,999 | $2,975 + 1.3% of amount over $1,000,000 |
| $1,800,000 – $2,999,999 | $13,375 + 1.65% of amount over $1,800,000 |
| $3,000,000 and over | $33,175 + 2.55% of amount over $3,000,000 |
Victoria also applies a trust surcharge of 0.5% on land held in certain trust structures.
Queensland
Assessment date: 30 June
Administered by: Queensland Revenue Office
| Land value | Rate |
|---|---|
| $0 – $600,000 | $0 (below threshold) |
| $600,001 – $999,999 | $500 + 1.0% of amount over $600,000 |
| $1,000,000 – $2,999,999 | $4,500 + 1.65% of amount over $1,000,000 |
| $3,000,000 – $4,999,999 | $37,500 + 2.25% of amount over $3,000,000 |
| $5,000,000 and over | $82,500 + 2.75% of amount over $5,000,000 |
Western Australia
Assessment date: 30 June
Administered by: WA Office of State Revenue
| Land value | Rate |
|---|---|
| $0 – $300,000 | $0 (below threshold) |
| $300,001 – $420,000 | $300 + 0.25% of amount over $300,000 |
| $420,001 – $1,000,000 | $600 + 0.9% of amount over $420,000 |
| $1,000,001 – $1,800,000 | $5,820 + 1.8% of amount over $1,000,000 |
| $1,800,001 – $5,000,000 | $20,220 + 2.0% of amount over $1,800,000 |
| Over $5,000,000 | $84,220 + 2.67% of amount over $5,000,000 |
South Australia
Assessment date: 30 June
Administered by: RevenueSA
| Land value | Rate |
|---|---|
| $0 – $668,000 | $0 (below threshold) |
| $668,001 – $1,103,000 | $0.50 per $100 over $668,000 |
| $1,103,001 – $1,538,000 | $2,175 + $0.90 per $100 over $1,103,000 |
| $1,538,001 – $2,008,000 | $6,090 + $1.30 per $100 over $1,538,000 |
| $2,008,001 – $3,257,000 | $12,200 + $1.85 per $100 over $2,008,000 |
| Over $3,257,000 | $35,306 + $2.40 per $100 over $3,257,000 |
Tasmania
Assessment date: 1 July
Administered by: State Revenue Office TAS
| Land value | Rate |
|---|---|
| $0 – $100,000 | $0 (below threshold) |
| $100,001 – $499,999 | 0.45% |
| $500,000 – $999,999 | 0.75% |
| $1,000,000 and over | 1.5% |
Northern Territory
The NT does not impose land tax. This makes it one of the few jurisdictions in Australia without this recurring cost for property investors.
Australian Capital Territory
The ACT does not have a traditional land tax applicable only to investors. Instead, all property owners (including owner-occupiers) pay general rates based on the Average Unimproved Value (AUV) of their land. The ACT is transitioning away from stamp duty toward a broader-based rates system over a 20-year reform.
Principal Residence Exemption
In all states that impose land tax, your principal place of residence is exempt from land tax — you do not pay land tax on the home you live in. The exemption generally applies to the primary dwelling on the land.
Holiday homes and investment properties do not qualify for the principal residence exemption.
Land Tax and Trusts
Most states apply additional land tax rates or surcharges to land held in discretionary trusts (family trusts). Victoria adds 0.5%; other states have varying rules. This is an important planning consideration for those investing in property through trust structures.
Related Articles
- Land Tax Calculator — How to Estimate Your Bill
- State and Territory Taxes — Overview
- Best State for Tax in Australia
- Investment Property Tax Deductions
- State and Territory Tax hub
- Taxes hub
Frequently Asked Questions
Is land tax deductible? Yes. Land tax paid on investment properties is a deductible expense against rental income in your Australian income tax return. It is not deductible on your principal residence (but then, no land tax applies to your home either).
What if I move out of my home and rent it out? If you move out of your principal residence and rent it out, the property loses the principal residence exemption for land tax purposes — you will need to notify the state revenue authority and begin paying land tax (if your land value exceeds the threshold). The 6-year main residence CGT exemption rule is separate and applies only to CGT, not land tax.
Can foreign investors own property in Australia? Do they pay different land tax? Foreign investors can generally buy property in Australia (subject to FIRB approval). Most states apply a foreign investor land tax surcharge on top of ordinary land tax — typically 2–4% additional. This surcharge applies in NSW, VIC, QLD, SA, and TAS.
This article provides general tax information. Land tax rates and thresholds are subject to change with each state budget. 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.