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    TaxKiln Australia
    TaxKiln

    Land Tax by State and Territory

    An eight-jurisdiction comparison of annual land tax thresholds, progressive rates, trust surcharges, absentee and foreign owner surcharges, aggregation rules, primary production exemptions, and the Victorian COVID debt surcharge for 2025-26.

    Land tax is an annual state and territory tax on the unimproved value of land you own, excluding your principal place of residence. Thresholds, rates, and surcharges vary dramatically: NSW starts at $1,075,000 with a 1.6% general rate, Victoria starts at just $50,000 (or $25,000 for trusts), and the Northern Territory levies no land tax at all. Trust-held land faces punitive thresholds in Victoria and South Australia ($25,000, effectively from dollar one), while foreign and absentee owner surcharges add 3% to 5% across most jurisdictions.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact ATO. Read our editorial scope →

    New South Wales

    NSW thresholds have been frozen at 2024 values for the 2025 and 2026 land tax years. The general threshold is $1,075,000 with a rate of $100 plus 1.6% above the threshold. The premium threshold sits at $6,571,000, with $88,036 plus 2% on value above that level. The foreign owner surcharge is 5% of land value from the 2025 land tax year with no threshold (payable from dollar one). Principal residence and primary production land (zoned rural/non-urban, used dominantly for commercial primary production) are exempt.

    Victoria

    Victoria's land tax thresholds dropped significantly from 1 January 2024. The general threshold is $50,000 ($25,000 for trust-held land). The top marginal rate is 2.65% for landholdings over $3 million, before temporary surcharges. A COVID-19 debt temporary surcharge (2024 to 2033) adds a fixed $975 plus an extra 0.10% on land values above $300,000, increasing the effective top rate to around 2.75%. The 4% absentee owner surcharge stacks on top. Vacant residential land tax has been expanded statewide.

    Queensland and Western Australia

    Queensland calculates land tax solely on Queensland landholdings (the interstate aggregation plan was scrapped). Individuals have a $600,000 threshold; companies and trustees face a lower $350,000 threshold. Rates run from $500 plus 0.001 per dollar over $600,000 up to $150,000 plus 0.0225 per dollar over $10 million. Absentee classifications attract higher rates (commonly a 2% uplift) using the lower $350,000 threshold. Western Australia has a $300,000 tax-free threshold with progressive rates up to approximately 2.67%. A Metropolitan Region Improvement Tax (MRIT) of about 0.14% applies on taxable land in the Perth metropolitan region. WA charges a 5% foreign owner surcharge on residential land.

    South Australia and Tasmania

    South Australia's general threshold is approximately $833,000, but trust-held land faces a $25,000 threshold (effectively from dollar one). SA aggregates taxable land within the state per ownership type. Tasmania's tax-free threshold is $124,999.99 from 1 July 2024, with a lower rate of approximately 0.45% to 0.55% up to $500,000 and a higher rate of 1.5% above $500,000. Tasmania applies a foreign investor land tax surcharge on foreign owners of residential land.

    ACT and Northern Territory

    The ACT is phasing down stamp duty and increasing annual land-based charges. There is effectively no tax-free threshold for investment properties: every investment property pays land tax. Rates include a fixed charge of approximately $1,693 plus an ad-valorem rate that rises with value, from roughly 0.54% to 1.14% for residential investment land. The Northern Territory levies no land tax of any kind: no threshold, no annual charge, no foreign owner surcharge, no absentee surcharge.

    Trust thresholds and the dollar-one trap

    Using trusts for asset protection has a clear land tax trade-off in Victoria and South Australia. Both apply a $25,000 threshold to trust-held land, meaning land tax applies from near dollar one. Queensland's trust threshold is $350,000 (lower than the individual $600,000). NSW applies the same $1,075,000 threshold regardless of ownership structure, making it less punitive for trust-held property.

    Indicative annual land tax comparison

    These figures are for an individual owner on general residential investment or business land at standard rates only, excluding foreign, absentee, trust, COVID, MRIT, or vacancy surcharges.

    Primary production exemptions

    All land-tax jurisdictions provide some form of primary production exemption. Each state has its own statutory definition, which can differ from the ATO's definitions for income tax purposes. State tests typically examine land zoning, dominant use, commerciality, scale, and whether produce is sold commercially. Meeting the ATO's primary production definition for income tax does not automatically satisfy the state land tax exemption criteria.

    Statute references

    • Revenue NSW (land tax thresholds, rates, foreign surcharges)
    • State Revenue Office Victoria (land tax rates, trust surcharge, COVID surcharge, absentee surcharge)
    • Queensland Revenue Office (land tax thresholds for individuals versus companies/trusts, absentee classifications)
    • WA Office of State Revenue (land tax rates, MRIT)
    • RevenueSA (land tax thresholds, trust rates)
    • State Revenue Office Tasmania (land tax rates, FILTS)
    • ACT Revenue Office (annual land-based charges, no-threshold model)
    • NT Treasury (confirmation of no land tax)

    Frequently asked questions

    Is my home subject to land tax?+
    No. Every jurisdiction that levies land tax provides a principal place of residence (PPR) exemption. Your home is exempt provided it meets the relevant state's definition of a PPR, which generally requires you to live in the property as your main residence. Home-office arrangements typically remain exempt where business use is incidental to the residential purpose.
    Why is trust-held property taxed more heavily in some states?+
    Victoria and South Australia both apply a lower threshold of $25,000 to trust-held land, meaning land tax applies effectively from dollar one. This is a deliberate policy to counter the use of trusts for asset protection while avoiding land tax. NSW applies the same $1,075,000 threshold regardless of whether land is held individually or in a trust, making it less punitive in this regard.
    Does land tax aggregate all my properties together?+
    Yes. Every state aggregates non-exempt land within that state by ownership type. Multiple small properties are taxed as one combined holding, pushing the total into higher rate bands. Queensland abandoned a proposal to aggregate all Australian landholdings across states, so land tax is based solely on land within each individual state.
    What surcharges apply to foreign and absentee owners?+
    Most jurisdictions levy a surcharge of 3% to 5% on foreign or absentee owners. Victoria's 4% absentee owner surcharge can stack with the $975 COVID debt surcharge, trust surcharge, and vacant residential land tax, creating a combined rate substantially higher than the headline general rate. NSW charges a 5% foreign owner surcharge with no threshold (payable from dollar one). The NT has no surcharges of any kind.

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