Land Tax in Australia 2026: Thresholds, Rates, and How to Calculate Your Bill

Land Tax Australia 2026: Thresholds, Rates and How to Calculate Your Bill

Land tax is an annual tax levied by state and territory governments on the total taxable value of land you own. Unlike stamp duty, which you pay once at purchase, land tax is an ongoing charge that applies every year your land value sits above the relevant land tax threshold.

Land tax is assessed on the unimproved value of land owned, not the value of buildings. If you own investment property in Australia, use our free land tax calculator to check whether you need to pay land tax.

Who Needs to Pay Land Tax?

You may be liable to pay land tax if the total taxable value of all land owned in a single state or territory exceeds the land tax threshold. Property owners who hold investment property, vacant or commercial property are typically subject to it. Your principal place of residence is usually exempt.

The rules vary depending on your state or territory government, your ownership structure, and your individual circumstances. Properties held in trust often face lower thresholds and higher land tax rates than those owned by individuals, with a trustee potentially assessed at different rates.

State-by-State Land Tax Rates and Thresholds (2025-26)

Each state and territory government sets its own land tax threshold, exemptions, and rates. Here is a summary for the current financial year.

New South Wales

The threshold in NSW is $1,075,000 for general rates. Land owners pay $100 plus 1.6% on the total taxable value above that amount. The premium rate of 2.0% applies above $6,571,000. Assessment date is midnight 31 December.

Victoria

Victoria dramatically lowered its threshold to $50,000, meaning many more property owners now pay land tax. Rates start at $500 and scale to 2.55% on land above $3 million. Assessment date is midnight 31 December.

Queensland

The Queensland threshold is $750,000 for individuals and $600,000 for companies and trusts. Rates range from 1.0% to 2.75% depending on total taxable value. Assessment date is midnight 30 June.

South Australia

South Australia has a threshold of $763,000. Rates start at 0.5% and scale to 2.4% above $1,591,000. Assessment date is midnight 30 June.

Western Australia

The Western Australia threshold is $300,000. Rates start at 0.25% and scale progressively. Assessment is typically sent between September and January.

Tasmania

Tasmania has a threshold of $87,000. Owners pay $50 plus 0.55% above that amount, with rates scaling higher for greater values.

ACT

The ACT uses a fixed charge plus marginal rates on average unimproved value. All land is assessed, but home exemptions apply if you live in the residence.

Northern Territory

The Northern Territory does not levy this charge.

How Aggregation Affects Your Land Tax Bill

Most states aggregate the total taxable value of all property owned to determine your rates. For example, in NSW three properties each valued at $400,000 individually fall below the threshold, but the total value of $1,200,000 puts you $125,000 above it.

This means your payment increases with every property you add, even if each individual property has a modest land value. Check your assessment carefully.

Land Tax Exemptions

Exemptions vary by state but commonly apply to your principal place of residence, primary production land, and eligible community or charitable land. Seniors may receive concessions in some states depending on their circumstances.

Contact your state or territory government revenue office to learn which exemptions apply. You may also be eligible for concessions based on the location or intended use of the land.

Stamp Duty vs Land Tax

Stamp duty is a one-off payment at purchase. Land tax is an annual tax that recurs every year you own land. Both charges affect property returns, but land tax can creep up as land values rise.

How to Dispute a Land Tax Assessment

If you believe your land tax assessment contains an error, review the documents for the correct address and unimproved value. Contact the state revenue office first. If unresolved, lodge a formal objection or consult a solicitor.

Calculate Your Land Tax Now

Use our free land tax calculator to estimate your land tax based on property locations and the total taxable value of land owned. Knowing the dollar amount helps you budget wisely.

Land tax is typically assessed and invoiced between September and January based on the property ownership as of a specified liability date.

For investment properties, land tax is generally a tax-deductible expense through the Australian Taxation Office (ATO).

Assessment dates for land tax liability are specific to each state, with variations such as 31 December for NSW and VIC, and 30 June for QLD, WA, SA, and TAS.

Land tax is an annual tax levied by state and territory governments on property owners in Australia, except in the Northern Territory.

The tax is based on the unimproved value of the land, which is determined by the local council or state Valuer-General.

Each state/territory sets its own thresholds and rates for land tax, except for the Northern Territory, which has no land tax.

Most states have a tax-free threshold; land tax is payable only if the total value of all taxable land in a single state exceeds this threshold.

Most states apply an additional surcharge on residential land owned by foreign persons, generally between 2% and 4%.

Properties held in trusts or companies often face lower thresholds and higher tax rates than those owned by individuals.

In Queensland, individuals are liable for land tax if the total unimproved value of their land is $600,000 or more as of midnight 30 June each year.

Land tax rates in Australia are typically tiered, meaning they are based on the total taxable value of the property, with different thresholds and rates set by each state and territory.

In Western Australia, land tax is assessed annually based on the total unimproved value of all land held by the same owners, with assessments typically sent between September and January.

If the total value of the land you own falls below the threshold set by your state or territory's revenue office, you will not have to pay land tax.

If you believe your land tax assessment is incorrect, you have the right to dispute it, and the process may vary slightly across different states in Australia.

If issues with your land tax assessment persist after contacting the local State Revenue Office, you can proceed with lodging a formal objection to initiate the dispute process.

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