Your home is exempt from land tax
The most important rule first: land tax does not apply to the home you live in. Every state that charges land tax exempts your principal place of residence. So if the only land you own is the home you live in, you almost certainly pay no land tax at all. Land tax is an annual state tax aimed at investment properties, holiday homes, second properties and vacant land. Flip the toggle to “My home” above and the calculator returns nil, because that is what the exemption does.
How land tax is calculated in Australia
Land tax is charged on the total taxable land value you own in a state, measured by the unimproved value of the land rather than the price you paid or the value of the buildings on it. The state valuer-general sets that land value each year. If you own more than one taxable property in the same state, their land values are added together, which is called aggregation. Each state then applies a tax-free threshold and a progressive scale above it: you pay a fixed base amount for your value band plus a set rate on the land value above the band floor. This calculator applies the current threshold and scale for your state, then leaves your home out where the exemption applies.
Land tax thresholds by state, 2026
Thresholds and rates differ sharply, which is why the same land value produces very different bills across the country. For land that is not your home, tax starts once your state total passes the threshold: about $1,075,000 in NSW ($100 plus 1.6% above), a low $50,000 in Victoria, $600,000 for individuals in Queensland, $936,000 in South Australia for the 2026-27 year, $300,000 in WA and $125,000 in Tasmania. The ACT works differently, charging a fixed charge plus a marginal charge on the Average Unimproved Value, billed quarterly. The Northern Territory has no land tax. Pick your state above and the calculator uses the right scale automatically.
Who pays land tax on an investment property
If you rent out a property or hold a second home, its land value counts towards your state total, and land tax applies once that total crosses the threshold. Victoria's low $50,000 threshold means many Victorian investors pay some land tax even on a single property, while a NSW investor may stay under the $1,075,000 threshold on one holding. Foreign and absentee owners, and land held in trusts or companies, face separate thresholds and surcharges that this calculator does not cover, so treat those cases as out of scope and get advice. For everyone else, the figure above is the annual cost to budget for alongside your other holding costs.
Frequently asked questions
Do you pay land tax on your home?
Generally no. Every state that levies land tax exempts your principal place of residence, so the home you live in is not taxed. Land tax is aimed at investment properties, holiday homes and vacant land. If you own only the home you live in, you almost always pay nothing.
How is land tax calculated in Australia?
Land tax is charged each year on the total taxable value of the land you own in a state, based on the unimproved land value rather than the property price. Each state sets a tax-free threshold and a progressive scale above it: you pay a base amount for your band plus a rate on the value above the band floor. The land you hold is added together (aggregated) per state, and your home is left out.
Do you pay land tax on an investment property?
Often yes, once your total taxable land value in that state passes the threshold. Thresholds vary widely: about $1,075,000 in NSW, $50,000 in Victoria, $600,000 for individuals in Queensland, $936,000 in South Australia, $300,000 in WA and $125,000 in Tasmania. Below the threshold you pay nil. Above it you pay tax only on the excess. Select your state above for the figure.
What is the land tax threshold in NSW?
For the 2025 and 2026 land tax years the NSW general threshold is a land value of $1,075,000, with a premium threshold at $6,571,000. Above the general threshold you pay $100 plus 1.6% of the land value over $1,075,000. Above the premium threshold it is $88,036 plus 2% of the value over $6,571,000. Your principal place of residence is exempt.
Which states have the lowest and highest land tax thresholds?
Victoria has the lowest general threshold at $50,000, so many Victorian investors pay some land tax. Tasmania sits at $125,000 and WA at $300,000. Queensland starts at $600,000 for individuals, South Australia at $936,000, and NSW is highest at $1,075,000. The Northern Territory has no land tax at all. A lower threshold means tax kicks in on smaller holdings.
How can I reduce or avoid land tax?
The legitimate levers are the exemptions and thresholds in the law. Your principal place of residence is exempt, so living in a property removes it from the calculation. Holding land under the threshold, spreading ownership across different legal owners where genuine, or holding property in different states so no single state total crosses its threshold can all reduce the bill. Trusts and companies face separate, often lower, thresholds and surcharges, so get advice before restructuring.
Does the Northern Territory have land tax?
No. The Northern Territory is the only Australian jurisdiction with no land tax, so you pay nothing there no matter how many properties you own. Every other state and the ACT levy land tax on land that is not your home.
When do you pay land tax?
Land tax is assessed once a year on the land you own on a set date: 31 December in NSW and Victoria, 30 June in Queensland, South Australia and WA, and 1 July in Tasmania. The ACT bills land tax quarterly. Assessments arrive after the taxing date and are usually payable by the due date on the notice or in instalments.
This tool is a guide, not financial advice. Land tax thresholds, rates and exemptions change and can turn on details this calculator does not capture, including trusts, companies, foreign-owner surcharges and part-year ownership. Confirm the exact figure with your state revenue office before you rely on it.
