Land Tax
Government & Compliance
An annual state government tax on the total taxable value of investment land you own, excluding your principal residence.
Full Explanation
Land tax is levied by each state and territory based on the combined unimproved value of all taxable land you own in that state. Your principal place of residence is exempt, but investment properties are not. Rates and thresholds vary by state: for example, NSW has a tax-free threshold of $100,000 (general rate) while VIC starts at $50,000. Land tax is assessed annually and can be a significant holding cost for properties on high-value land.
Example
You own two investment properties in NSW with a combined land value of $900,000, resulting in a land tax bill of approximately $12,600 per year.
Frequently Asked Questions
Is land tax the same in every state?
No. Each state and territory has its own land tax rates, thresholds, and rules. NSW, VIC, QLD, SA, WA, and TAS all have different threshold amounts and rate structures. The ACT and NT use different systems entirely.
Is land tax tax-deductible?
Yes. Land tax paid on investment properties is fully tax-deductible against your rental income in the financial year it is paid.