Land tax is one of the most overlooked costs of owning an investment property. Unlike stamp duty which you pay once, land tax is an annual bill that can run into thousands of dollars — and the rules vary wildly between states. Victoria's threshold starts at just $50,000 in land value, while NSW won't tax you until you hit $1,075,000. Whether you own one rental or a growing portfolio, understanding your land tax liability is essential for accurate cash flow planning. Here's the complete breakdown for every state and territory in 2025-26.
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 means the value of the land itself — not the house, unit, or improvements on it. Key points:
- Your principal place of residence (PPR) is exempt in every state and territory
- Land tax applies to investment properties, holiday homes, vacant land, and commercial property
- It's assessed on the total value of all taxable land you own in that state (not per property)
- The land value is determined by the Valuer-General, not the market price of the property
- Trusts and companies often face lower thresholds or additional surcharges
State-by-State Land Tax Rates 2025-26
New South Wales
NSW Land Tax Rates (2025-26)
| Land Value | Rate (Individual) |
|---|---|
| Up to $1,075,000 | Nil (tax-free threshold) |
| $1,075,001 – $6,680,000 | $100 + 1.6% of value above $1,075,000 |
| Over $6,680,000 | $89,780 + 2.0% of value above $6,680,000 |
Trust surcharge: Trusts face an additional 2% surcharge on the entire land value above $0 (no threshold applies for the surcharge component).
NSW has the highest tax-free threshold in the country at $1,075,000. This means many investors with a single property won't pay any land tax at all — the land component of a typical Sydney investment property often falls below this threshold. However, once you cross it, the 1.6% rate adds up quickly.
Victoria
VIC Land Tax Rates (2025-26) — Lowest Threshold in Australia
| Land Value | Rate (Individual) |
|---|---|
| Up to $50,000 | Nil |
| $50,001 – $100,000 | $0.02 per $100 (0.02%) |
| $100,001 – $250,000 | $10 + 0.2% of value above $100,000 |
| $250,001 – $600,000 | $310 + 0.5% of value above $250,000 |
| $600,001 – $1,000,000 | $2,060 + 0.8% of value above $600,000 |
| $1,000,001 – $1,800,000 | $5,260 + 1.3% of value above $1,000,000 |
| $1,800,001 – $3,000,000 | $15,660 + 2.05% of value above $1,800,000 |
| Over $3,000,000 | $40,260 + 2.55% of value above $3,000,000 |
Trust surcharge: Threshold drops to $25,000 with an additional 0.375% surcharge on value above $25,000.
Victoria has the lowest land tax threshold in Australia at just $50,000. This means virtually every investment property in Victoria will attract land tax. Combined with the COVID-era temporary levy and trust surcharges, Victoria is by far the most expensive state for land tax on investment properties.
Queensland
QLD Land Tax Rates (2025-26)
| Land Value | Rate (Individual) |
|---|---|
| Up to $750,000 | Nil (tax-free threshold) |
| $750,001 – $2,250,000 | 1.0% of value above $750,000 |
| $2,250,001 – $5,000,000 | $15,000 + 1.75% of value above $2,250,000 |
| Over $10,000,000 | $125,625 + 2.75% of value above $10,000,000 |
Trust/Company: Threshold drops to $350,000 with rates starting at 1.75%.
Queensland has a relatively generous individual threshold of $750,000, but this drops sharply to $350,000 for trusts and companies. Given how much Brisbane land values have risen in recent years, many investors who were previously below the threshold may now be caught.
Western Australia
WA Land Tax Rates (2025-26)
| Land Value | Rate |
|---|---|
| Up to $300,000 | Nil |
| $300,001 – $420,000 | 0.25% of value above $300,000 |
| $420,001 – $1,000,000 | $300 + 0.9% of value above $420,000 |
| $1,000,001 – $1,800,000 | $5,520 + 1.4% of value above $1,000,000 |
| $1,800,001 – $5,000,000 | $16,720 + 1.9% of value above $1,800,000 |
| Over $11,000,000 | $221,520 + 2.67% of value above $11,000,000 |
South Australia
SA Land Tax Rates (2025-26)
| Land Value | Rate (Individual) |
|---|---|
| Up to $763,000 | Nil (tax-free threshold) |
| $763,001 – $1,190,000 | 0.5% of value above $763,000 |
| $1,190,001 – $1,530,000 | $2,135 + 1.0% of value above $1,190,000 |
| Over $1,530,000 | $5,535 + 2.4% of value above $1,530,000 |
Trust/Company: No tax-free threshold. Rates start at 0.5% from $0.
Tasmania
TAS Land Tax Rates (2025-26)
| Land Value | Rate |
|---|---|
| Up to $100,000 | Nil |
| $100,001 – $350,000 | $50 + 0.55% of value above $100,000 |
| $350,001 – $750,000 | $1,425 + 1.0% of value above $350,000 |
| Over $750,000 | $5,425 + 1.5% of value above $750,000 |
Australian Capital Territory
ACT Land Tax Rates (2025-26)
| Average Unimproved Value (AUV) | Rate |
|---|---|
| First $150,000 | Fixed charge $1,326 + 0.54% |
| $150,001 – $275,000 | 0.64% on this portion |
| $275,001 – $2,000,000 | 1.09% on this portion |
| Over $2,000,000 | 1.12% on this portion |
Note: The ACT has no tax-free threshold for investment properties. All investment land attracts a fixed charge plus marginal rates on the Average Unimproved Value.
Northern Territory
NT — No Land Tax
The Northern Territory is the only state or territory in Australia that does not levy land tax. This makes it unique for property investors and is one factor behind its appeal for portfolio diversification.
Quick Comparison: All States Side by Side
Land Tax Thresholds — All States (Individual Owner)
| State | Tax-Free Threshold | Tax on $800K Land | Trust Difference |
|---|---|---|---|
| NSW | $1,075,000 | $0 | +2% surcharge from $0 |
| SA | $763,000 | $185 | No threshold ($0) |
| QLD | $750,000 | $500 | Threshold drops to $350K |
| WA | $300,000 | $3,720 | Same threshold |
| TAS | $100,000 | $5,925 | Same threshold |
| VIC | $50,000 | $3,660 | Threshold drops to $25K + surcharge |
| ACT | $0 | ~$8,351 | Same rates |
| NT | No land tax | $0 | N/A |
"Tax on $800K Land" shows the approximate annual land tax for an individual owning investment land valued at $800,000 in each state.
Tips for Property Investors
- Check your land value, not property value. Land tax is based on the unimproved land value from the Valuer-General — typically much lower than the total property value. You can find this on your rates notice or your state's land value search.
- Ownership structure matters. Holding property in a trust or company can mean lower thresholds and additional surcharges in NSW, VIC, QLD, and SA. Get advice before choosing your structure.
- Multiple properties are aggregated. If you own three investment properties in one state, their land values are combined and taxed as a total. This can push you into higher brackets.
- Interstate properties are assessed separately. Each state only taxes land within its borders. A property in NSW and one in QLD are assessed independently.
- Use our calculator. Try our Land Tax Calculator to estimate your annual liability instantly — just enter your land value, state, and owner type.
Sources: Revenue NSW; State Revenue Office Victoria; Queensland Revenue Office; Department of Finance WA; RevenueSA; State Revenue Office Tasmania; ACT Revenue Office
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