State-by-State Tax Burden Ranker

Which Australian state has the lowest tax burden for your situation? Income tax is federal and identical everywhere, but stamp duty, land tax, and payroll tax vary dramatically between states. Enter your scenario below to rank all 8 states and territories from cheapest to most expensive.

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This calculator provides estimates based on 2025-26 tax rates. Stamp duty is a one-off cost while income tax, Medicare, land tax, and payroll tax are annual. Figures are indicative only and do not constitute financial or legal advice. Consult a registered tax agent for accurate advice.

How state taxes work in Australia

Australia does not have state-level income tax. The taxes that differ between states are:

  • Stamp duty (transfer duty) — a one-off tax when purchasing property. Varies from approximately 3% to 6% of property value depending on the state.
  • Land tax — an annual tax on the unimproved value of investment land. Thresholds range from $0 (ACT) to over $1M (NSW). The NT has no land tax.
  • Payroll tax — paid by employers on total wages above a threshold. Rates range from 4% (Tasmania) to 6.85% (ACT), with thresholds from $900k to $2.5M.

Federal taxes — income tax, Medicare levy, capital gains tax, and superannuation contributions tax — are identical in every state and territory.

Key differences between states

For property buyers: The ACT has the most generous first home buyer scheme (full exemption up to $1.02M). Queensland and Tasmania offer $30,000 First Home Owner Grants. NSW exempts stamp duty up to $800,000 for first home buyers.

For investors: The Northern Territory has no land tax at all, making it attractive for property investors. Queensland and SA have relatively high land tax thresholds ($600,000 and $833,000 respectively).

For employers: The NT ($2.5M) and ACT ($2M) have the highest payroll tax thresholds, meaning small-to-medium businesses pay no payroll tax. Tasmania has the lowest base rate at 4%.

Do Australian states have different income tax rates?
No. Income tax in Australia is a federal tax set by the Commonwealth government. It is identical regardless of which state or territory you live in. The taxes that vary between states are stamp duty (transfer duty), land tax, and payroll tax.
Which Australian state has the lowest overall tax burden?
It depends entirely on your situation. For property buyers, the ACT and NT often have competitive stamp duty rates. For investors, the NT has no land tax at all. For employers, the ACT and NT have the highest payroll tax thresholds ($2M and $2.5M respectively). Use the calculator above to rank all 8 states for your specific income, property, and business scenario.
What is stamp duty and why does it vary by state?
Stamp duty (also called transfer duty) is a one-off tax paid when purchasing property. Each state and territory sets its own rates and thresholds, which is why the amount can vary by tens of thousands of dollars for the same property price. First home buyers can access concessions or full exemptions in most states.
What is land tax and when does it apply?
Land tax is an annual tax on the unimproved value of land you own. Your primary residence is exempt in all states. Land tax only applies to investment properties, vacant land, and commercial properties. Each state has different thresholds, rates, and surcharges. The Northern Territory does not levy land tax.
What is payroll tax and who pays it?
Payroll tax is a state tax paid by employers (not employees) on total wages above a threshold. Each state has different rates (4%–6.85%) and thresholds ($900k–$2.5M). Small businesses with payrolls below the threshold pay nothing. Victoria and Queensland also levy mental health or COVID debt surcharges on larger payrolls.
Should I include stamp duty in an annual comparison?
Stamp duty is a one-off cost, not an annual tax. This calculator includes it for comparison purposes — if you're deciding where to buy, stamp duty is a major factor. For an ongoing annual comparison, focus on income tax, Medicare levy, land tax, and payroll tax. You can toggle each tax type on or off using the checkboxes.

Related calculators

Interstate Moving Cost Calculator Compare property costs when moving between two specific states. Stamp Duty Comparison — All States Side-by-side stamp duty table at key price points. NSW Payroll Tax Calculator Calculate payroll tax liability for NSW employers. Victoria Land Tax Calculator Calculate annual land tax liability in Victoria.

Last updated 20 April 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

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