State Tax Burden Compared: Which Australian State Costs You Most in 2025-26?
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Primary tax-year context: 2025-26
This article is general information only. We maintain pages using primary-source checks and date-based reviews. See editorial policy.
General information only. This is not tax or financial advice. Rates and thresholds change; confirm with the relevant state revenue office before acting.
Federal income tax is the same in Perth as it is in Hobart, but everything else isn’t. Stamp duty on an identical house can differ by $20,000 between states, land tax kicks in at wildly different thresholds, and the payroll tax wage base that matters most to your small business depends entirely on where your staff are. This article compares the three big state taxes that most individuals and small businesses actually pay in 2025-26.
Stamp duty on an $800,000 owner-occupier purchase
Assume a first-time non-concessional buyer (no first home buyer discount applied — see your state FHB calculator separately for concessions).
| State | Approximate stamp duty on $800k |
|---|---|
| VIC | $43,070 |
| NSW | $31,715 |
| SA | $37,080 |
| TAS | $30,935 |
| WA | $30,640 |
| QLD | $21,850 (principal place of residence concession) |
| NT | $29,370 |
| ACT | Phased out for eligible buyers under income caps; full rate ~$22,450 |
Victoria remains the most expensive stamp-duty state on mid-range homes, while Queensland’s PPR concession keeps owner-occupier duty materially lower. The ACT has been progressively shifting from stamp duty to a broad-based land tax since 2012.
Land tax on a $1.5m investment property (land value only, general rate)
Most states charge land tax on the unimproved land value, not the total property value. Assume a single investor with one investment property on land valued at $900,000.
| State | Approximate 2025-26 land tax |
|---|---|
| NSW | ~$6,648 (land $900k, threshold $1,075,000 — not liable in 2025 if land value below threshold; next year’s threshold indexed) |
| VIC | ~$3,975 + $975 COVID-era surcharge for investors |
| QLD | ~$4,500 on resident individuals |
| SA | ~$4,000 |
| WA | ~$2,900 |
| TAS | ~$8,100 (Tasmania has a sharp scale above $500k) |
| ACT | ~$5,900 (ACT levies land tax on all residential investment properties plus a fixed charge) |
Specific numbers move each year with valuations — use the state tax burden ranker for current figures.
Victoria surcharge: On top of general land tax, Victoria applies an annual Vacant Residential Land Tax and a separate absentee owner surcharge for foreign owners. Factor both in when modelling Melbourne rentals.
Queensland: Uses land value on properties held in Queensland only — interstate holdings are no longer aggregated after the 2022 policy reversal.
Payroll tax: thresholds and top rates
If you run a business with staff, the payroll tax threshold determines whether you pay at all, and the rate determines how much. Grouping rules can pull related entities together.
| State | Annual threshold | Headline rate |
|---|---|---|
| NSW | $1,200,000 | 5.45% |
| VIC | $900,000 (monthly $75k) | 4.85% metro / 1.2125% regional |
| QLD | $1,300,000 | 4.75% / 4.95% above $6.5m |
| WA | $1,000,000 | 5.5%, tapering to 6.5% above $100m |
| SA | $1,500,000 | 4.95% |
| TAS | $1,250,000 | 4% / 6.1% above $2m |
| ACT | $2,000,000 | 6.85% |
| NT | $2,500,000 | 5.5% |
The ACT and NT have the highest thresholds in the country, which is why small service businesses often find Canberra or Darwin cheaper to hire in than Sydney or Melbourne. NSW’s $1.2m threshold catches employers at around 12-14 full-time staff.
Worked example: three small businesses
Business A — sole-state operator, $1.1m wages, based in Sydney. Above NSW’s $1.2m threshold? No. Payroll tax: $0.
Business B — same wages, same staff, Melbourne. Above VIC’s $900k threshold by $200k. Payroll tax at 4.85% = $9,700 per year.
Business C — $3m wages, split 60% Sydney, 40% Brisbane. NSW wages = $1.8m, over $1.2m by $600k × 5.45% = $32,700. QLD wages = $1.2m, below $1.3m threshold = $0. Total = $32,700. Note: each state apportions its own threshold based on the share of national wages, so the arithmetic isn’t always this clean — model with the state revenue calculators.
Combined burden: where is the cheapest state to live and invest?
There’s no single answer, but a few patterns repeat:
- Owner-occupier buyers: QLD, WA and TAS are consistently cheapest on stamp duty; VIC and SA are most expensive.
- Property investors: WA has the lightest land tax on mid-range holdings; TAS, QLD and VIC (with its surcharge) are heaviest.
- Small employers: NT and ACT have the highest thresholds, so small teams pay nothing; NSW catches mid-sized employers earliest.
- Foreign investors: NSW, VIC and QLD all apply foreign purchaser stamp duty surcharges (7-8%) plus absentee land tax surcharges (2-4%).
Key takeaways
- Stamp duty differences on an $800k home can exceed $20,000 between states — it’s worth modelling before you move or buy.
- Land tax regimes diverge sharply once you own more than one property; VIC’s surcharge and TAS’s steep scale punish mid-tier investors.
- Payroll tax thresholds vary by a factor of 2.7x between VIC and NT — a genuine consideration for where to base a growing services business.
- Surcharges on foreign buyers and vacant residential land are increasing across most states, not decreasing.
Run your own stamp duty, land tax and payroll tax side-by-side in the state tax burden ranker, and if you’re weighing a move, cross-check the CGT impact of selling in the capital gains tax calculator.