Land Tax in Victoria — Rates, Thresholds & Calculator 2026
Everything you need to know about land tax in VIC for the 2025-26 financial year, including current rates, thresholds, exemptions, and surcharges.
Overview
Victoria has the lowest land tax threshold in Australia at just $50,000, reduced from $300,000 in 2024 as part of the COVID Debt Repayment Plan. This means virtually every investment property in Victoria now attracts land tax. Victoria also has the most complex surcharge regime: a 4% absentee owner surcharge, a 0.375% trust surcharge, and a vacant residential land tax for properties in metropolitan Melbourne left unoccupied for more than six months.
Use this Victoria land tax calculator to estimate what you could owe on an investment property under current 2025-26 rules and current rates before the annual notice arrives. Victoria now has the lowest general land tax threshold in Australia at $50,000, so even relatively modest holdings can trigger an annual bill.
This Victoria land tax calculator is built for investors comparing a purchase, reviewing an existing portfolio or checking whether a different ownership structure could change the result. Because Victoria applies land tax to total taxable land value rather than purchase price, the result can change quickly once aggregation rules, trust holdings or absentee owner settings apply.
Current year settings matter too: Victoria cut the general threshold from $300,000 to $50,000 in 2024 and the lower threshold remains in place for the 2025-26 year. If you are budgeting alongside council rates, insurance and interest costs, using a Victoria land tax calculator early can stop you understating holding costs before you buy or refinance.
The general threshold for 2025-26 is $50,000 (reduced from $300,000 in 2024). This is the lowest threshold of any Australian state, meaning most investment land in Victoria will attract land tax.
| Land Value From | To | Marginal Rate |
|---|---|---|
| $0 | $50,000 | Nil |
| $50,001 | $100,000 | Fixed |
| $100,001 | $300,000 | Fixed |
| $300,001 | $600,000 | 0.3% |
| $600,001 | $1,000,000 | 0.6% |
| $1,000,001 | $1,800,000 | 0.9% |
| $1,800,001 | $3,000,000 | 1.65% |
| $3,000,001 | and above | 2.65% |
How Land Is Valued in VIC
Victoria uses the site value (also called unimproved capital value) of land as determined by the Valuer General Victoria. This is the value of the land only, excluding buildings and improvements. Valuations are updated annually and appear on your council rates notice.
Revenue Body
State Revenue Office Victoria
Assessment Date
31 December each year. Ownership on this date determines your land tax liability for the following calendar year.
Aggregation Rules
All taxable land owned by the same person in Victoria is aggregated. With the $50,000 threshold, even modest landholdings are captured. For example, owning a small regional investment block worth $80,000 means you are already above the threshold.
Exemptions
- Principal place of residence (PPOR)
- Primary production land
- Charitable and religious land
- Rooming houses (with conditions)
- Retirement villages
- Land used for a primary producer's home
Surcharges
Absentee Owner Surcharge
A 4% absentee owner surcharge applies to absentee owners (those not ordinarily resident in Australia). This is assessed on the total taxable land value from the first dollar -- no threshold exemption applies to the surcharge. Combined with the standard rates, an absentee owner could face effective rates above 6% on high-value land.
Trust Surcharge
A 0.375% trust surcharge applies to land held in a trust (other than a fixed trust or excluded trust). This surcharge was introduced in 2024 and applies from the $50,000 threshold. The trust surcharge is in addition to standard rates and any absentee surcharge.
Other Notable Rules
The Vacant Residential Land Tax (VRLT) applies to residential properties in metropolitan Melbourne that are left unoccupied for more than six months in the preceding calendar year. The VRLT rate is 1% of the capital improved value (not just land value) of the property. From 2025, the VRLT expanded to all of Victoria. Owners must notify the SRO if their property is vacant.
Land Value
$750,000
State
VIC
Annual Land Tax
$3,150 per year
Calculation
The first $600,000 incurs $2,250. The remaining $150,000 is taxed at 0.6%. Tax = $2,250 + ($150,000 x 0.6%) = $2,250 + $900 = $3,150.
The 2024 threshold reduction has had a significant impact on Victorian property investors. Many investors who previously paid no land tax now face annual bills ranging from a few hundred dollars to several thousand. For investors holding multiple properties, the aggregated land value can quickly push them into higher rate brackets.
Victoria's combination of low thresholds, absentee surcharges, trust surcharges, and the VRLT makes it one of the most expensive states for property investment from a land tax perspective. Some investors have responded by diversifying into Queensland and Western Australia, which offer higher thresholds and fewer surcharges.
How to Use This Calculator
Start with the taxable land value shown on your assessment, not the full property purchase price. Enter that figure, confirm the Victorian setting and review whether any special rules apply to you, such as absentee owner or trust treatment. Once the calculator returns an estimate, compare it with the rest of your holding costs so you can see the full annual impact on cash flow.
For the most accurate result, use current valuation information and test more than one scenario. If you are buying, model both the first year and a higher land value case so you can see how quickly the bill changes once thresholds or surcharges apply. If you already own multiple Victorian properties, use the result as a planning estimate and confirm complex exemptions or ownership questions with your adviser.
A common mistake is entering the purchase price instead of the taxable land value, or forgetting that multiple holdings can be aggregated. Another is ignoring the 4% absentee owner surcharge or the 0.375% trust surcharge when they apply. A better approach is to test your current value, a higher future value and a multi-property scenario so this Victoria land tax calculator becomes a planning tool, not just a one-off estimate.
Frequently Asked Questions
Why is Victoria's land tax threshold so low?
Victoria reduced its land tax threshold from $300,000 to $50,000 in 2024 as part of the COVID Debt Repayment Plan. This means virtually every investment property in Victoria now attracts land tax, even modest regional holdings. The low threshold is expected to remain in place for at least 10 years.
What is the absentee owner surcharge in Victoria?
Absentee owners (those not ordinarily resident in Australia) pay a 4% surcharge on the total taxable land value of their Victorian landholdings, in addition to standard land tax rates. There is no threshold exemption for the surcharge -- it applies from the first dollar.
What is the trust surcharge in Victoria?
Land held in a trust (other than a fixed trust or excluded trust) attracts a 0.375% surcharge in addition to standard land tax rates. This was introduced in 2024 and applies from the $50,000 threshold. Trustees should consider whether restructuring to a fixed trust could avoid this surcharge.
What is the Vacant Residential Land Tax in Victoria?
The Vacant Residential Land Tax (VRLT) applies to residential properties left unoccupied for more than six months in the preceding calendar year. The VRLT is 1% of the capital improved value (total property value, not just land). From 2025, it applies across all of Victoria, not just metropolitan Melbourne.
What is the new land tax rate in Victoria?
Land tax in Victoria is calculated under current 2025-26 rates using taxable land value, and the bill can change once thresholds, aggregation rules or surcharges apply. The first step is to use the land value used for assessment rather than the full purchase price. Use our calculator above to estimate the annual amount before you buy, hold or restructure a property.
How do you calculate land tax in Victoria?
Land tax in Victoria is calculated under current 2025-26 rates using taxable land value, and the bill can change once thresholds, aggregation rules or surcharges apply. The first step is to use the land value used for assessment rather than the full purchase price. Use our calculator above to estimate the annual amount before you buy, hold or restructure a property.
Go Beyond a One-Off Estimate
A one-off estimate is useful, but real portfolio decisions depend on how taxes, financing and operating costs work together over time. Create your free owner account to track land-tax exposure, cash flow and holding costs across your portfolio, or explore PropBoss features to see how scenario planning fits together.
Related Articles
Land tax calculations make more sense when you compare the rules across states and see how the bill fits into your wider investing strategy.
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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.