Land Tax Calculator Australia

What is land tax?

Land tax is an annual state tax on the value of land you own, excluding the land your home is on and, generally, land used for primary production. It applies to investment properties, holiday homes, vacant land and commercial property. It is charged on the land value, not the purchase price or the value of the house. Every state and the ACT charges it; the Northern Territory is the only jurisdiction with no land tax. It is a different tax from council rates and from the stamp duty paid when you buy.

Land tax thresholds and rates compared

The figures below are for an individual owner (not a trust or company) holding all the land in one state, after any home exemption. On $1,500,000 of taxable land, South Australia charges the least ($2,820) and Australian Capital Territory the most ($18,628). The ACT figure is a per-property charge that does not use a threshold. Foreign surcharges are charged on top, at the rate shown.

How land value is assessed: the Valuer-General

Land tax uses a government valuation of the land alone, called unimproved value or site value, issued by the state Valuer-General. Most states smooth the figure so one strong year does not cause a sudden jump in tax:

• New South Wales uses the average of the last three years of land values.
• Queensland uses the lower of the current valuation and a three-year average.
• Western Australia caps growth: taxable value is the lower of the current unimproved value and 150% of the previous year's value.
• Victoria and South Australia use site value, which is the land without buildings.
• Tasmania uses the assessed land value set as at 1 July.
• The ACT uses a five-year average unimproved value.

Why two modest investment properties can trigger land tax

Each state adds up all the taxable land you own in that state and applies one threshold to the total, but each state taxes only land within its own borders. An individual who owns two Queensland investment blocks valued at $700,000 and $600,000 pays $9,450 on the combined $1,300,000. If the second block were in New South Wales instead, they would pay $1,500 in Queensland and $0 in NSW.

Low-value land: where small holdings still pay

A modest investment property can be well under one state's threshold and still be taxed in another. On $400,000 of taxable land, an individual pays $0 in New South Wales, $1,650 in Victoria, $0 in Queensland, $300 in Western Australia, $0 in South Australia, $1,288 in Tasmania, $4,938 in Australian Capital Territory. Victoria's threshold is very low and includes flat charges added under its COVID Debt Repayment Plan. Tasmania's threshold is also low. The ACT has no threshold at all: every rented or vacant residential property pays a fixed charge plus a valuation charge, assessed quarterly.

This is why investors holding in more than one state compare land tax before buying, not after. Use the calculator for your own total, and remember the result is per state.

Principal place of residence exemption

Every state that charges land tax exempts your principal place of residence, which is why most owner-occupiers never receive a bill. The exemption is tied to the land you actually live in on the assessment date. Renting out a former home, using part of it for business or leaving it vacant can change that, and the rules differ by state. In the ACT, residential land tax only applies to properties that are not anyone's principal place of residence, such as rented or vacant homes.

Snapshot dates, trusts and foreign owners

Land tax is based on what you own at one moment. New South Wales and Victoria use midnight on 31 December for the following calendar year. Queensland, Western Australia and South Australia use midnight on 30 June for the financial year. Tasmania uses 1 July, and the ACT assesses each quarter. Selling during the year does not normally cancel the assessment. Trusts often pay more: NSW special trusts have no threshold, Victoria charges trust surcharge rates, and South Australian trust rates apply from a much lower threshold than the general rates. Several states also add a foreign owner or absentee surcharge, as shown in the table. Western Australia and South Australia have no land tax surcharge for foreign owners.