Land Tax · Guide

Land Tax Australia 2026: All 8 States Compared

Land tax is the single biggest recurring cost most Australian property investors underestimate — and the rules differ wildly by state. This guide covers every jurisdiction for 2026, including trust surcharges, foreign owner surcharges, death grace periods, and strategic decisions about where to buy.

All 8 jurisdictionsTrust surchargesForeign surcharges
What is land tax?

Land tax is an annual state or territory tax on the unimproved value of land you own. It's separate from council rates, income tax, stamp duty, and the Commonwealth tax system — each state runs its own regime with its own threshold, rates, exemptions, and surcharges.

Three features matter most:

→ It's on land value, not property value — Your $800,000 Sydney house might have $450,000 of land value; the building on top doesn't count.
→ It's aggregated across your portfolio — Own four apartments in Victoria? Their land values are added before applying the $50,000 threshold.
→ It's state-by-state — Land in Victoria aggregates with other Victorian land, but not with NSW land. Diversifying across states can spread value under multiple thresholds.

Land tax assessments arrive annually (quarterly in ACT). Overdue land tax attracts penalty interest, and unpaid land tax can trigger a charge on the property preventing sale.

Quick comparison: land tax by state

A $500,000 taxable land holding produces the following annual liabilities:

StateGeneral thresholdLand tax on $500kForeign surchargeTrust threshold
NSW$1,075,000$05%$0 for a special (discretionary) trust — taxed from the first dollar
VIC$50,000$1,9504%$25,000
QLD$600,000$03% above $350,000$350,000
WA$300,000$500NoneSame as individual
SA$936,000$0None (the 7% is stamp duty)$25,000
TAS$125,000$1,737.502%Same as individual
ACT$0 (from first dollar)$6,1780.75% (AFLT)Same as individual
NTNo land tax$0N/AN/A

Strategic insight: The same $500,000 of taxable land produces $0 in NSW, QLD, SA, and NT; $500 in WA; $1,737.50 in Tasmania; $1,950 in Victoria; and $6,178 in the ACT. Over 10 years, and before any growth in land value, that is more than $62,000 of difference on identical dollar value.

New South Wales

NSW has the most investor-friendly general threshold in Australia at $1,075,000, and land assessed at exactly that figure still pays nil. Rates for 2026:

→ General rate: $100 + 1.6% of land value above $1,075,000
→ Premium rate: $88,036 + 2% of land value above $6,571,000
→ Foreign person surcharge: 5% of total taxable residential land value (from first dollar — no threshold)
→ Special (discretionary) trust: no threshold at all — 1.6% of the whole taxable value from the first dollar

25% ownership rule: From February 2024, NSW requires at least 25% ownership to claim the PPOR exemption. Grace period: 2 years for executors after death.

Calculate NSW land tax →

Victoria

Victoria has the lowest general threshold on the mainland ($50,000), progressive rates up to 2.65%, a separate trust regime, and an absentee owner surcharge. The COVID Debt Repayment Plan (2024-2033) increased rates across multiple brackets.

Total land valueBase taxMarginal rate above bracket
$50,000 – $99,999$5000%
$100,000 – $299,999$9750%
$300,000 – $599,999$1,3500.30%
$600,000 – $999,999$2,2500.60%
$1,000,000 – $1,799,999$4,6500.90%
$1,800,000 – $2,999,999$11,8501.65%
$3,000,000+$31,6502.65%

Trust threshold: $25,000. Absentee/foreign surcharge: 4% on top of base rates. Grace period for executors: 3 years (the most generous of any state).

Calculate Victorian land tax →

Queensland, WA, SA, TAS, ACT & NT

Queensland

Threshold $600,000 for resident individuals, $350,000 for companies and trustees, and $350,000 again for absentees — who sit on their own rate scale rather than the individual one. Progressive rates reach 2.25% above $10M for individuals and 2.75% for companies and trustees. Only Queensland land is counted: interstate aggregation was legislated in 2022 and repealed before it applied. Absentee and foreign surcharge 3% above $350,000; grace period: next 30 June after death.

Calculate Queensland land tax →

Western Australia

Threshold $300,000. Progressive rates up to 2.67% above $11M. Metro Perth properties also pay MRIT at 0.14% above $300k. No foreign surcharge — WA is one of the most foreign-investor-friendly states from a land tax perspective. Grace period: 2 years.

Calculate Western Australia land tax →

South Australia

General threshold ~$936,000 for individuals; trust threshold only $25,000. SA 2020 redesign made many trust structures uneconomic overnight. No foreign or absentee surcharge applies to SA land tax — the 7% foreign ownership surcharge SA is known for is stamp duty on the purchase, charged once. Grace period: up to 5 years for executors.

Calculate South Australia land tax →

Tasmania

Low threshold $125,000 — even modest investment properties attract tax. Rates up to 1.5% above $500k. No distinction between trust and individual ownership. Foreign investor surcharge (FILTS): 2% for residential land acquired on or after 1 July 2022.

Calculate Tasmania land tax →

ACT

Assessed quarterly with no threshold — the first dollar of investment land value attracts tax. Fixed charge $1,778 per year plus progressive marginal rate 0.54–1.26%. This makes the ACT the most expensive jurisdiction for small to medium investment properties. Foreign owner surcharge: 0.75% (AFLT). Timing PPOR conversions to quarter boundaries saves a full quarter's tax.

Calculate ACT land tax →

Northern Territory

No land tax at all — the only Australian jurisdiction without it. A $500k taxable land holding costs $0 in NT versus $1,737.50 in TAS or $6,178 in ACT. However: NT markets are smaller and more volatile; don't let the tax saving drive investment location decisions.

Worked example: $500k land, investor individual
StateAnnual land tax10-year cost
NSW$0$0
VIC$1,950~$22,000 (with growth)
QLD$0$0
WA$500~$5,700
SA$0$0
TAS$1,737.50~$19,600
ACT$6,178~$69,800
NT$0$0
Common exemptions and traps
→ PPOR exemption ends the moment you rent it out — Every state exempts your principal place of residence. Renting out the whole property always removes the exemption immediately.
→ Primary production must be genuinely commercial — Hobby farms and lifestyle blocks often don't qualify — there must be genuine commercial production.
→ Forgetting to notify the revenue office — You must update the revenue office when you buy, sell, or change use. Back-taxing catches many investors years later.
→ Trust aggregation removes the individual threshold — A discretionary trust can lose you the individual threshold entirely in SA and VIC.
→ Joint ownership gets one threshold — Multiple owners are assessed as a single entity with one threshold, not multiple thresholds.
→ Foreign surcharge creep for overseas Australians — Australian citizens who spend long periods overseas may trigger 'foreign person' status and lose the threshold entirely.
Is land tax deductible?

Yes — for investment properties. Land tax is an allowable deduction against rental income, claimable in the year the liability arises (not the year paid). Combined with loan interest, rates, insurance, management fees, and depreciation, land tax often contributes meaningfully to negative gearing.

For your principal place of residence, land tax is not deductible (and is exempt in every state anyway). For commercial property operated through a business, land tax is typically deductible as a business expense.

Calculate your land tax
→ NSW land tax → Victoria land tax → Queensland land tax → WA land tax → SA land tax → Tasmania land tax → ACT land tax
FAQ
Which Australian state has the highest land tax?
ACT and Victoria typically collect the most land tax relative to property value. ACT applies a quarterly assessment from the first dollar of residential investment land, with no threshold. Victoria's general threshold is only $50,000 (versus NSW's ~$1.08 million), so most Victorian investors pay land tax from their first investment property. Queensland, WA, and SA have more generous thresholds.
Is there any state with no land tax on investment property?
The Northern Territory has no land tax at all. Every other state and territory (NSW, VIC, QLD, WA, SA, TAS, ACT) applies land tax to residential investment property above their respective thresholds. The Northern Territory's exemption is one reason some investors build portfolios in Darwin and Alice Springs.
Is my principal place of residence (PPOR) subject to land tax?
No — all states and territories (except the NT which has no land tax at all) exempt your principal place of residence. The exemption applies to one dwelling per person or couple, and you must genuinely live in it. If you rent it out, the exemption ends the moment it becomes income-producing.
Does land tax apply to land value or property value?
Land tax is calculated on the unimproved land value — not the combined property value (land + building). The unimproved value is determined by each state's Valuer General and published annually. For an $800k Sydney house, the land portion might be $450k; for a $600k Brisbane apartment, it might be $50k. This is why apartments often attract less land tax.
What is the NSW 25% ownership rule?
From February 2024, NSW requires that you own at least 25% of a property to qualify for the PPOR land tax exemption. Previously, even a 1% ownership share could secure the full exemption. The change closed a structuring loophole where parents held most of a property while a child claimed PPOR. Transitional provisions apply for existing arrangements.
Are trust and company structures treated differently?
Yes — significantly. Victoria and SA apply trust surcharge rates with thresholds as low as $25,000 (vs $936,000 for individuals in SA). Queensland applies a separate trust-aggregation rule. NSW applies an additional 1.6% surcharge to discretionary trusts without a fixed trust designation. Using a trust or company for land-tax 'optimisation' can backfire — run the numbers first.
What happens to land tax if the owner dies?
Every state offers a grace period for the executor or beneficiary. NSW gives 2 years, Victoria gives 3 years, Queensland runs to the next 30 June (up to 12 months), WA offers 2 years, SA offers 5 years for sale settlement. Miss the grace period and land tax applies to the deceased estate from that date forward.
Do I pay land tax if I live overseas?
If you're a 'foreign person' under each state's definition, you pay a surcharge on top of the base land tax in most states. NSW charges 5% (up from 4% in 2024), Victoria 4%, Queensland 3%, Tasmania 2%, and the ACT 0.75%. Western Australia and South Australia apply no land tax surcharge at all — SA's well-known 7% foreign ownership surcharge is stamp duty on the purchase, not an annual land tax. Where a surcharge does apply, NSW, Victoria and Tasmania charge it from the first dollar of taxable land, while Queensland charges it above $350,000. Australian citizens living overseas may or may not qualify as foreign depending on visa and residency tests.
Can I deduct land tax on my investment property?
Yes. Land tax is fully deductible against rental income on an investment property, reducing your taxable income in the year the liability is incurred (not paid). This is one of several operating expenses claimable alongside loan interest, rates, insurance, and management fees.
How is Victoria's COVID Debt Plan land tax change different?
Victoria legislated a temporary COVID Debt Repayment Plan that increased land tax rates across several brackets, effective 2024 and running through 2033. The changes are built into the current rate tables rather than tacked on as a surcharge. Victorian investors saw their annual land tax rise significantly without any change in land value.
Does the ACT's quarterly assessment matter?
Yes. Unlike every other state (annual assessment on land value at a fixed date), the ACT assesses land tax quarterly. The status of the property on the first day of each quarter determines whether tax applies for that quarter. This matters when converting a rental back to a PPOR or vice versa — timing the conversion to quarter boundaries saves money.

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Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

This guide uses land tax thresholds and rates as published by each state and territory revenue office — NSW, VIC and QLD assess land tax on the calendar year (current: 2026); SA, WA, TAS and the ACT assess on the financial year (current: 2026-27). Land tax rules change frequently — especially Victoria's ongoing COVID Debt Plan adjustments and NSW's rule changes. Always verify current rates at your state revenue office before making decisions.

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