What is land tax?
Land tax is a yearly state tax based on land value, not on any buildings on it, once the owner's combined land value rises above the state's threshold. Of the eight states and territories, seven charge it, while the Northern Territory has no land tax. Usually, the home where the owner lives is not taxed.
How land tax works across Australia
Every state fixes a taxing date, and on that day it taxes the land it holds. Revenue NSW is one example: land owned at midnight on 31 December is taxed, and the charge covers the full year ahead. At midnight on 30 June, Queensland, South Australia and Western Australia each check the land owned.
Next, the office adds together the value of all taxable land held by one owner in the state. A total below the threshold means no tax is payable. Past that point, the tax runs on a sliding scale, so a larger total means a higher rate. Revenue NSW says the threshold is based on the combined value of every property you own, rather than the value of each property by itself.
| State or territory | Threshold | Land tax year |
|---|---|---|
| New South Wales | $1,075,000 | 2026 land tax year |
| Victoria | $50,000 | 2026 land tax year |
| Queensland | $600,000 | 2026-27 |
| Western Australia | $300,000 | 2026-27 |
| South Australia | $936,000 | 2026-27 |
| Tasmania | $125,000 | 2026-27 |
| Australian Capital Territory | No threshold | 2026-27 |
| Northern Territory | No land tax | No land tax |
Sources: Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office, RevenueWA, RevenueSA, State Revenue Office Tasmania, ACT Revenue Office, Territory Revenue Office.
How land tax treats buildings
Land tax is charged on the land alone, not on the house, the units or the shop. NSW uses the unimproved value, which is the value of the land itself, excluding buildings. Victoria uses the site value, which the Valuer-General provides, and South Australia's site value also excludes buildings. A state valuer sets the figure, not the owner or a real estate agent.
A separate Victorian charge, the vacant residential land tax, applies to homes left empty, and it has its own rules.
Which land gets taxed
Land tax applies to land other than the owner's home. Common examples from the State Revenue Office Victoria include holiday homes, vacant land, commercial or industrial properties and residential investment properties. Tasmania lists shacks, rental properties, commercial properties and vacant land.
The ACT works in a different way. The tax covers rented and vacant residential properties, but commercial properties are not included.
Owners who pay it
Whoever holds the land pays, whether an individual, a company, a trust or a couple. Queensland's office says the tax covers individuals, companies, trusts and absentees whose land sits above the threshold, as measured at midnight on 30 June. Some owners face a lower threshold, or they face a surcharge. Many trusts and foreign owners are examples.
What usually gets an exemption?
Often known as the principal place of residence, the home an owner lives in is the main exemption. Land used for farming is known as primary production land. Most states also exempt it under the primary production land exemption, and NSW is included. Rooming houses and charitable institutions are also on Victoria's list.
The offices that collect it
Every state has its own revenue office, Act and rates. The NT government calls land tax a payment to the government of your state or territory, so the country has no national land tax. In Western Australia, an assessment notice goes to owners between September and January, covering the land owned as of midnight on 30 June.
| State or territory | Official page |
|---|---|
| New South Wales | Revenue NSW: land tax thresholds and rates |
| Victoria | State Revenue Office Victoria: land tax current rates |
| Queensland | Queensland Revenue Office: land tax rates for individuals |
| Western Australia | RevenueWA: land tax assessment |
| South Australia | RevenueSA: land tax rates and thresholds |
| Tasmania | State Revenue Office Tasmania: rates of land tax |
| Australian Capital Territory | ACT Revenue Office: land tax calculation method |
| Northern Territory | NT Government: land taxes |
Questions
What is land tax in simple terms?
Simply put, it is a yearly tax on the worth of land one owner holds in a single state, above that state's threshold. The base is the land figure set by the state valuer, with no buildings included.
Is land tax charged in every state in Australia?
No. NSW, Victoria, Queensland, Western Australia, South Australia, Tasmania, along with the ACT, all charge it. No land tax applies in the Northern Territory.
Do I have to pay land tax for my home?
In most cases, no. The home occupied by its owner is exempt in every state that charges land tax, if the requirements of the office are met. Tax normally applies to a second home and to a holiday house.
Do you pay land tax every year?
Yes. Assessment happens yearly, using the land held on the taxing date. Revenue NSW points out that selling the property before the year is over does not lower the tax.
Who sets the land value that land tax is based on?
It is the state valuer. In NSW, Revenue NSW works from values provided by the NSW Valuer General as at 1 July, year after year. In South Australia, the Valuer-General determines the site value every year.