Land Tax in Australian Capital Territory — Rates, Thresholds & Calculator 2026
Everything you need to know about land tax in ACT for the 2025-26 financial year, including current rates, thresholds, exemptions, and surcharges.
Overview
The ACT operates a unique land tax system that differs significantly from other states. Rather than a simple threshold-and-rate model, the ACT uses a fixed charge plus a percentage of the Average Unimproved Value (AUV) of the land. Rates vary by property type (residential vs commercial). The ACT has been progressively replacing stamp duty with higher rates and land tax as part of a long-term tax reform program. There is no general tax-free threshold -- all investment properties are subject to land tax. A 0.75% foreign owner surcharge also applies.
The ACT does not have a general tax-free threshold. Land tax applies to all investment properties from the first dollar of AUV. The tax is calculated as a fixed charge plus a percentage of the AUV.
| Land Value From | To | Marginal Rate |
|---|---|---|
| $0 | $150,000 | 0.54% |
| $150,001 | $275,000 | 0.64% |
| $275,001 | $2,000,000 | 1.12% |
| $2,000,001 | and above | 1.14% |
How Land Is Valued in ACT
The ACT uses the Average Unimproved Value (AUV), which is the average of the current and previous two years' unimproved land valuations. This smoothing mechanism reduces the impact of sudden valuation changes. The AUV is determined by the ACT Valuation Office.
Revenue Body
ACT Revenue Office
Assessment Date
1 July each year. Land tax is assessed quarterly, with bills issued each quarter.
Aggregation Rules
In the ACT, land tax is assessed per property rather than on aggregated holdings. Each investment property receives its own separate land tax assessment based on its individual AUV. This is different from most other states where all land is combined.
Exemptions
- Principal place of residence (PPOR)
- Properties rented under the ACT Government's affordable housing program (concessions apply)
- Properties undergoing renovation (temporary exemption with conditions)
Surcharges
Foreign Owner Surcharge
A 0.75% foreign owner surcharge applies to residential land owned by foreign persons in the ACT. This surcharge is assessed on the AUV in addition to the standard land tax rates.
Other Notable Rules
The ACT is in the midst of a 20-year tax reform program (started 2012) that progressively replaces stamp duty with broader land-based taxes. Stamp duty rates have been gradually reduced while land tax and general rates have increased. By the end of the transition, the ACT aims to eliminate stamp duty entirely, with all property-related revenue collected through annual land-based charges. This means ACT investors face lower upfront stamp duty but higher ongoing annual costs.
Land Value
$500,000 (AUV)
State
ACT
Annual Land Tax
$5,456 per year
Calculation
Fixed charge = $1,326. First $150,000 = $150,000 x 0.54% = $810. Next $125,000 ($150,001-$275,000) = $125,000 x 0.64% = $800. Remaining $225,000 ($275,001-$500,000) = $225,000 x 1.12% = $2,520. Total = $1,326 + $810 + $800 + $2,520 = $5,456.
The ACT's per-property assessment model means that owning multiple investment properties does not push you into higher rate brackets the way aggregation does in other states. Each property is assessed independently based on its own AUV, which can be advantageous for investors with multiple lower-value properties.
The territory's stamp duty phase-out makes the ACT an interesting case for property investors. While the upfront cost of purchasing is lower than in other states, the ongoing annual land tax and rates are higher. Investors should model the total cost of ownership over their expected holding period to determine whether the ACT's approach works in their favour compared to states with higher stamp duty but lower annual taxes.
Frequently Asked Questions
How is land tax calculated in the ACT?
ACT land tax is calculated using a fixed charge plus a percentage of the Average Unimproved Value (AUV) of the property. The AUV is a three-year rolling average of unimproved land valuations, which smooths out annual fluctuations. The rates vary by value bracket and property type. Each property is assessed individually -- there is no aggregation across properties.
Does the ACT have a land tax threshold?
No. The ACT does not have a general tax-free threshold. All investment properties are subject to land tax from the first dollar of AUV. This includes a fixed charge component plus a percentage of the AUV. Even low-value investment properties will incur a land tax bill due to the fixed charge.
Is the ACT replacing stamp duty with land tax?
Yes. The ACT began a 20-year tax reform program in 2012 to progressively eliminate stamp duty and replace it with broader land-based taxes, including higher land tax and general rates. Stamp duty rates have been gradually reduced, and the territory aims to eventually abolish stamp duty entirely. This means lower upfront costs when buying but higher ongoing annual costs.
Is there a foreign owner surcharge in the ACT?
Yes. A 0.75% foreign owner surcharge applies to residential land owned by foreign persons in the ACT. This is assessed on the AUV in addition to standard land tax rates. The ACT surcharge is lower than the 4% surcharges in NSW and Victoria.
Calculate Your ACT Land Tax
Enter your total taxable land value and get an instant calculation of your Australian Capital Territory land tax liability. Compare with other states to see where your money goes furthest.
Related Calculators & Guides
Land Tax by State
Information is for the 2025-26 financial year and is general in nature. Rates, thresholds, and surcharges may change. Land tax rules are complex and depend on your specific circumstances including ownership structure, property use, and residency status. Always consult a qualified tax professional or your state revenue office for advice specific to your situation.