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.
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 | 0.06% |
| $100,001 | $300,000 | 0.1% |
| $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 | 1.75% |
| $3,000,001 | and above | 2.55% |
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
$2,275 per year
Calculation
The first $600,000 incurs $1,375. The remaining $150,000 is taxed at 0.6%. Tax = $1,375 + ($150,000 x 0.6%) = $1,375 + $900 = $2,275.
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.
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.
Calculate Your VIC Land Tax
Enter your total taxable land value and get an instant calculation of your Victoria 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.