Land tax is calculated by applying each state’s rate schedule to the unimproved land value of your investment properties above the relevant threshold. Because land tax uses a progressive tiered structure — similar to income tax brackets — the calculation involves identifying which tier your total land value falls into and applying the formula for that tier. This guide walks through how to estimate your bill in each Australian state.
What You Need to Calculate Land Tax
Before starting, you need:
- The unimproved land value of each property — available from your council rates notice or from the relevant state valuation authority
- The state where each property is located
- The assessment date for your state (31 December for NSW and VIC; 30 June for QLD, WA, SA, TAS)
- Whether you hold the property personally or in a trust (trusts attract surcharges in some states)
Land tax is calculated separately per state — you cannot combine properties across states.
How to Read a Tiered Land Tax Schedule
Land tax schedules work like income tax brackets. You pay:
- $0 on the amount below the threshold
- The first-tier rate on the amount in the first band
- The second-tier rate on the amount in the next band
- And so on
The schedule lists a base amount (the tax already accumulated from lower tiers) plus a rate on the excess above a threshold. This is the same structure as the ATO’s income tax brackets.
NSW Land Tax — Worked Examples
NSW threshold (FY2025–26): $1,075,000
Formula for $1,075,001 – $6,571,000:
Tax = $100 + 1.6% × (land value − $1,075,000)
| Total land value | Land tax payable (NSW) |
|---|---|
| $900,000 | $0 (below threshold) |
| $1,075,000 | $0 (at threshold) |
| $1,300,000 | $100 + 1.6% × $225,000 = $3,700 |
| $2,000,000 | $100 + 1.6% × $925,000 = $14,900 |
| $3,500,000 | $100 + 1.6% × $2,425,000 = $38,900 |
VIC Land Tax — Worked Examples
VIC threshold (FY2025–26): $300,000
| Total land value | Land tax payable (VIC) |
|---|---|
| $250,000 | $0 (below threshold) |
| $400,000 | $375 + 0.2% × $100,000 = $575 |
| $750,000 | $975 + 0.5% × $150,000 = $1,725 |
| $1,200,000 | $2,975 + 1.3% × $200,000 = $5,575 |
| $2,000,000 | $13,375 + 1.65% × $200,000 = $16,675 |
Note that VIC’s low $300,000 threshold means a single investment property with a land value of $350,000 attracts $475 in land tax — not a massive sum, but it grows quickly as land values rise.
QLD Land Tax — Worked Examples
QLD threshold (FY2025–26): $600,000
| Total land value | Land tax payable (QLD) |
|---|---|
| $500,000 | $0 (below threshold) |
| $800,000 | $500 + 1.0% × $200,000 = $2,500 |
| $1,500,000 | $4,500 + 1.65% × $500,000 = $12,750 |
| $3,500,000 | $37,500 + 2.25% × $500,000 = $48,750 |
WA Land Tax — Worked Examples
WA threshold (FY2025–26): $300,000
| Total land value | Land tax payable (WA) |
|---|---|
| $280,000 | $0 (below threshold) |
| $380,000 | $300 + 0.25% × $80,000 = $500 |
| $800,000 | $600 + 0.9% × $380,000 = $4,020 |
| $1,500,000 | $5,820 + 1.8% × $500,000 = $14,820 |
SA Land Tax — Worked Examples
SA threshold (FY2025–26): $668,000
| Total land value | Land tax payable (SA) |
|---|---|
| $600,000 | $0 (below threshold) |
| $900,000 | $2,175 + 0.90% × ($900,000 − $1,103,000 — n/a) … |
SA uses per-$100 rates. For $900,000:
= $0 + 0.50% × ($900,000 − $668,000) = 0.50% × $232,000 = $1,160
For $1,200,000:
= $2,175 + 0.90% × ($1,200,000 − $1,103,000) = $2,175 + 0.90% × $97,000 = $2,175 + $873 = $3,048
TAS Land Tax — Worked Examples
TAS threshold (FY2025–26): $100,000
| Total land value | Land tax payable (TAS) |
|---|---|
| $80,000 | $0 (below threshold) |
| $200,000 | 0.45% × $200,000 = $900 |
| $600,000 | 0.75% × $600,000 = $4,500 |
| $1,200,000 | 1.5% × $1,200,000 = $18,000 |
TAS applies a flat rate within each band to the whole land value (not just the excess), so calculate carefully using the rate applicable to your total land value.
Multi-Property Aggregation
If you own multiple properties in the same state, their land values are aggregated:
Example — NSW investor with three properties:
- Property 1 land value: $450,000
- Property 2 land value: $380,000
- Property 3 land value: $520,000
- Total: $1,350,000
NSW land tax: $100 + 1.6% × ($1,350,000 − $1,075,000) = $100 + 1.6% × $275,000 = $100 + $4,400 = $4,500
Without aggregation, no individual property would exceed the $1,075,000 threshold — but combined, they attract $4,500 in annual land tax.
Using Official Calculators
Each state’s revenue authority provides an online land tax calculator:
- NSW: revenue.nsw.gov.au/taxes-duties-levies-royalties/land-tax
- VIC: sro.vic.gov.au/land-tax
- QLD: qro.qld.gov.au/land-tax
- WA: finance.wa.gov.au/land-tax
Always use the official calculator for the most accurate figures, as thresholds and rates may have been updated since this guide was published.
Related Articles
- Land Tax Australia — State-by-State Guide
- Best State for Tax in Australia
- Investment Property Tax Deductions
- State and Territory Tax hub
- Taxes hub
Frequently Asked Questions
Does the land tax threshold apply to the total value of all my properties or each one individually? The threshold applies to the total (aggregated) land value of all taxable properties you own in a state — not per property. One property worth $500,000 in NSW is below the $1,075,000 threshold. Two properties totalling $1,200,000 exceed it.
My investment property is worth $600,000 — what is my unimproved land value? The unimproved land value (UCV or site value) is the value of the land only — excluding the house or any improvements. This is typically much less than the total property value. You can find your land’s UCV on your council rates notice or by searching your state’s valuation authority website.
How often do state governments reassess land values? Most states conduct annual or biennial general valuations of land, which affect land tax assessments. If your land value increases significantly (e.g., due to rezoning or market growth), your land tax liability will increase accordingly. You have the right to object to a valuation you believe is incorrect.
This article provides general tax information. Land tax calculations use simplified examples. For accurate figures, use the official calculator from your state’s revenue authority. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.