Land Tax Calculator Australia 2025

Compare land tax across all Australian states. Enter your land value to see estimated annual land tax for each state side by side.

Land Tax Comparison by State
Enter a land value above
State Tax-Free Threshold Top Rate Estimated Tax
NSW$1,075,0002.0%
VIC$300,0001.3%
QLD$600,0002.0%
SA$534,0001.6%
WA$300,0002.0%
TAS$99,9992.0%
NTN/ANone$0
ACTN/ARates systemN/A

* Investment property rates shown. Primary residences are exempt in all states. NT has no land tax.

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What Is Land Tax?

Land tax is an annual tax levied by state and territory governments on the unimproved value of land you own — that is, the value of the land itself, excluding any buildings or improvements. It is assessed each year and must be paid by landowners who exceed their state's tax-free threshold.

Unlike stamp duty (which is a one-off purchase tax), land tax is a recurring annual obligation. For property investors, it is one of the key ongoing holding costs alongside council rates, insurance, and maintenance.

Who Pays Land Tax?

Land tax generally applies to investment properties, holiday homes, commercial properties, and vacant land. Your principal place of residence (your main home) is exempt from land tax in all Australian states. This exemption is the most significant concession available — it means millions of homeowners never pay land tax at all.

Other common exemptions and concessions include:

  • Primary production land — farms and rural properties used for agriculture
  • Charitable organisations — land used for charitable, religious, or educational purposes
  • Deceased estates — short-term exemptions during estate administration
  • Low-value land — most states have minimum thresholds below which no tax applies

How Land Value Is Assessed

Each state's valuation authority (such as the NSW Valuer General or the Valuer-General Victoria) assesses land values annually. These valuations are based on comparable sales of vacant land in the area and are distinct from your property's market value (which includes buildings). You can dispute a land valuation if you believe it is incorrect.

Investment Property Implications

For property investors, land tax is a legitimate tax deduction against rental income. However, because it is an annual recurring cost, it directly affects your cash flow and the viability of your investment. States with lower thresholds (like VIC at $300,000) can capture a much larger proportion of investors than states with higher thresholds (like NSW at $1,075,000).

If you own multiple investment properties, the land values are aggregated for land tax purposes in most states. This means you could exceed the threshold even if no single property's land value is above it individually.

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Frequently Asked Questions

What is land tax in Australia?
Land tax is an annual state government tax on the unimproved value of land you own — the land value excluding any buildings. It applies to investment properties, holiday homes, and vacant land, but not your principal place of residence. Six states levy land tax: NSW, VIC, QLD, SA, WA, and TAS. The NT has no land tax; the ACT uses a general rates system instead.
Is your home exempt from land tax?
Yes. Your principal place of residence — the home you live in as your main residence — is exempt from land tax in all Australian states. You must apply for this exemption in most states and notify your state revenue office if you move out or begin renting the property, as the exemption will no longer apply.
Which state has the highest land tax threshold?
NSW has the highest land tax-free threshold at $1,075,000 for the 2025–26 financial year. This means NSW investors with land valued below that amount pay no land tax. By contrast, VIC and WA have thresholds of just $300,000, meaning many investors with a single investment property will be liable for land tax in those states.
Are multiple investment properties aggregated for land tax?
Yes, in most states the land values of all taxable properties you own in that state are added together and taxed as a whole. For example, if you own two investment properties in Victoria each with a land value of $200,000, your combined land value of $400,000 exceeds the $300,000 threshold and you will pay land tax on $400,000 — even though neither property individually exceeds the threshold.
Is land tax deductible on an investment property?
Yes, land tax is a legitimate tax-deductible expense for investment properties under Australian tax law, provided the property is used to generate assessable income (e.g., rental income). You cannot claim land tax on your primary residence as it is not used to produce income. Always consult your accountant to confirm deductibility in your specific situation.
Disclaimer: This calculator provides estimates based on published 2025–26 land tax rates for each state. Actual land tax depends on your assessed land value, applicable exemptions, and your specific circumstances. This is not financial or legal advice. Always consult a qualified accountant or solicitor for advice about your land tax obligations.
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