Last updated: 1 March 2025

Land tax in Australia is a state or territory levy on land ownership, calculated annually based on the unimproved land value. Generally, it doesn’t apply to owner-occupied homes (principal place of residence) but does impact investment properties, commercial properties, and vacant land.

On the podcast, we get heaps of questions about land tax—how it’s calculated, whether investors should be worried, and which states have the trickiest rules. In fact, back in 2022, we saw a flood of questions when Queensland announced a new land tax, only to scrap it a month later after major backlash. 😌

 

Is Land Tax the same as Property Tax?

A common question we get is whether land tax is the same as property tax. While they might sound similar, they’re actually different. Land tax is based on the unimproved value of the land (excluding buildings or improvements) and is typically levied on investment properties, commercial properties, and vacant land.

Property tax, on the other hand, is a broader term that can refer to different things depending on the context. Internationally, it often refers to a general tax on the total value of a property (land + buildings), paid annually by both owner-occupiers and investors. In Australia, we don’t have a broad-based annual property tax across all properties, but some state-specific property taxes do exist.

 

Australian Land Tax Breakdown: How Much Will You Pay?

Since each state and territory has different thresholds, rates, and rules, we’ve pulled together all the key details  in one spot for our borderless investor community. Keep in mind that land tax rates can change depending on how the property is owned (e.g., individuals, trusts, or companies). Below is a state-by-state summary of land tax regulations for individual owners, including links to get more details.

 

State/ Territory	Thresholds and Rates	More Information
New South Wales (NSW)	General threshold: $100 plus 1.6% of land value above the threshold, up to the premium threshold. Premium threshold: $88,036 plus 2% of land value above the threshold. Land tax is applied for the full year following the taxing date of 31 December, and no pro-rata calculation applies.From 2024 onwards, the general threshold is $1,075,000 and the premium threshold is $6,571,000.	Revenue NSW
Victoria (VIC)	From 2024 land tax year, the general rates are: Less than $50,000: Nil $50,000 to less than $100,000: $500 $100,000 to less than $300,000: $975 $300,000 to less than $600,000: $1,350 plus 0.3% of amount above $300,000 $600,000 to less than $1,000,000: $2,250 plus 0.6% of amount above $600,000 $1,000,000 and above: Click here.	State Revenue Office Victoria
Queensland (QLD)	For individuals: Less than $600,000: Nil $600,000 to $999,999: $500 plus 1 cent for each $1 more than $600,000 $1,000,000 to $2,999,999: $4,500 plus 1.65 cents for each $1 more than $1,000,000 $3 mil and above: Click here.	Queensland Revenue Office
South Australia (SA)	2020-21 General Rates: Does not exceed $732,000: Nil Exceeds $732,000 but not $1,176,000: $0.50 for every $100 or part of $100 above $732,000 Exceeds $1,176,000 but not $1,711,000: $2,220 plus $1.00 for every $100 or part of $100 above $1,176,000 $1,711,00 and above: Click here.	RevenueSA
Western Australia (WA)	General Rates: Up to $300,000: Nil $300,001 to $420,000: $300 $420,001 to $1,000,000: $300 + 0.0025 dollars for each $1 in excess of $420,000 $1 mil and above: Click here.	Department of Finance WA
Tasmania (TAS)	General Rates: Up to $124,999.99: Nil $125,000 to $499,999.99: ​$50 plus 0.45% of value above $125 000​ $500,000 and above: ​$1 737.50 plus 1.5% of value above $500 000	State Revenue Office Tasmania
Australian Capital Territory (ACT)	Marginal rates that apply to property AUV (Average of the Property’s Unimproved Value over up to 5 years) Up to $150,000: 0.54% of the AUV of the property From $150,000 to $275,000: $810 plus 0.64% of the part of the AUV that is more than $150,000 From $275,001 to $1,000,000: $1,610 plus 1.24% of the part of the AUV that is more than $275,000 From $1,000,000 and above: Click here.	ACT Revenue Office
Northern Territory (NT)	The Northern Territory does not currently impose land tax.	Territory Revenue Office

It’s important to note that land tax generally applies to investment properties, commercial properties, and vacant land. Owner-occupied properties (principal places of residence) are typically exempt from land tax. However, specific exemptions and thresholds vary by state and territory. For detailed information on exemptions and specific calculations, please refer to the respective state or territory revenue office websites linked above.​

 

How are they calculated?

Land tax is calculated annually based on the combined unimproved value of taxable landholdings. Each state and territory has its own method of valuation and assessment. Generally, the process involves:​

• Valuation of Land: The unimproved value of each parcel of land is determined by the state’s Valuer-General or equivalent authority.​
• Aggregation of Landholdings: The total unimproved value of all taxable land owned by an individual or entity is aggregated.​
• Application of Thresholds and Rates: The aggregated value is compared against the state’s land tax thresholds, and the applicable rates are applied to calculate the tax payable.​

For precise calculations and to understand how land tax may apply to your specific situation, it’s advisable to consult the relevant state or territory revenue office or seek professional advice from a qualified tax accountant.

 

Are there any Land Tax Exemptions and Relief?

There are several land tax exemptions and relief measures available across Australia, but they vary by state and territory. Common exemptions include land used as a principal place of residence, primary production land, and certain non-profit or charitable uses.

Some states also offer relief for properties affected by natural disasters or hardship. Since eligibility rules and application processes differ, it’s best to check directly with the relevant state or territory revenue office for the most up-to-date information.

 

Need expert guidance on land tax? Our sister company at Empower Wealth offers specialised tax accounting services to help property investors navigate land tax obligations, optimise deductions, and build sustainable tax structures that support your future goals. Get in touch today here!

Disclaimer: The information in this blog is intended for general informational purposes only and is based on current land tax rates and regulations at the time of writing. Land tax laws and thresholds are subject to change, and rates may vary over time. We recommend checking with the relevant state or territory revenue office or consulting a qualified tax professional for the most up-to-date and personalised advice.