Land tax by state is one of the biggest hidden costs in an investment property, and it varies wildly across the border. A $700,000 block of land can cost you nothing a year in Sydney or Adelaide. Yet the same land value costs about $2,850 in Melbourne and more than $8,600 in Canberra. So here are the 2026 thresholds and rates for each state, the recent changes, and a worked example you can copy.
This article was produced and reviewed by the Australia Develops editorial team. See our Editorial Policy for sourcing standards and methodology.
How land tax by state is assessed: the snapshot dates
Land tax is a yearly state tax on the land value you own. It isn’t based on the price you paid or the rent you earn. Instead, each state takes a snapshot of what you own on one night of the year. Then it bills you for the whole following year.
- NSW and Victoria: midnight on 31 December. Revenue NSW also says the tax isn’t pro rata.
- Queensland, WA and SA: midnight on 30 June.
- Tasmania: 1 July. The ACT, by contrast, assesses each whole quarter.
That timing matters for anyone buying or selling. If you settle on a NSW investment property on 2 January, the seller wears that year’s bill. But settle on 30 December, and you could carry the whole next year yourself. So check the snapshot date before you agree on a settlement date.
Each state also adds up your holdings within its borders only. A block in Brisbane never counts towards your NSW total. That single rule shapes most of the strategy further down.
NSW: a high threshold, a 5% foreign surcharge
For the 2026 land tax year, NSW kept its general threshold at $1,075,000. Above that, Revenue NSW charges “$100 plus 1.6% of the land value above $1,075,000”. A higher premium rate starts at $6,571,000. Revenue NSW also uses a three-year average of your land values, so one big valuation jump is smoothed out.
Two changes stand out. First, foreign owners now pay surcharge land tax of 5% with no tax-free threshold. It rose from 4% for the 2025 land tax year. Second, the home exemption tightened. Since 1 February 2024, the people living in a home need at least a 25% ownership interest to claim it. From the 2026 tax year, the transitional relief for older claims ended, so homes below that line lost the exemption.
Victoria: the lowest threshold and a COVID debt top-up
Victoria sits at the other extreme. Since the 2024 land tax year, its general threshold has been just $50,000. That came with the state’s COVID debt repayment plan, a temporary measure that runs until 2033. Holdings from $50,000 pay a flat $500, and from $100,000 a flat $975. On top of that, the marginal rate rises by 0.1 percentage points from $300,000.
The published 2026 scale already includes those extras. For example, holdings between $600,000 and $1 million pay $2,250 plus 0.6% above $600,000. At the top, $3 million or more pays $31,650 plus 2.65%. Absentee owners also pay a 4% surcharge, and trusts face a separate, steeper scale.
Queensland, WA and SA in 2026
Queensland’s threshold for individuals is $600,000. Above that, the Queensland Revenue Office scale charges $500 plus 1 cent for each dollar over $600,000. Companies and trusts start much lower, at $350,000, with $1,450 plus 1.7 cents per dollar. Absentees pay the company scale plus a 3% surcharge from $350,000.
Western Australia has a $300,000 threshold. Between $300,001 and $420,000 you pay a flat $300. After that, it’s $300 plus 0.25% of the excess over $420,000, up to $1 million. Perth metro land above $300,000 also pays the Metropolitan Region Improvement Tax at 0.14%.
South Australia made the year’s biggest move. For 2026-27, RevenueSA lifted the general threshold from $833,000 to $936,000. That’s an increase of about 12.4%, in line with site value growth. Above it, you pay 0.5% up to $1,504,000, and the top rate reaches 2.4% above $3,504,000.
Tasmania and the ACT: the land tax by state outliers
Tasmania’s threshold is only $125,000. From there, the charge is $50 plus 0.45%, and from $500,000 it’s $1,737.50 plus 1.5% of the excess. That top rate kicks in early, so mid-range land gets expensive fast.
The ACT works differently. It taxes residential property that isn’t your home, such as a rental, and it has no threshold at all. Every rental pays a fixed charge of $1,778 from 1 July 2026. Then a marginal rate applies to the average unimproved value (AUV), which is averaged over up to five years. Also, the ACT applies its scale to each property’s own AUV.
Land tax by state: one $700k block in each
Take an individual investor who owns one rental in each state. Each block has a taxable land value of $700,000, and the investor owns nothing else. This is where land tax by state gets interesting. Here is the yearly bill using each state’s published scale for individuals.
Across the five mainland states, the total is $5,350 a year, or $5,910 if the WA block is in Perth. Add Tasmania and the ACT, and it climbs to $18,745.50 before the Perth levy. So the two smallest jurisdictions cost more than the five big states combined.
Now put all five mainland blocks in NSW instead. The combined $3.5 million is $2,425,000 over the threshold. At 1.6% plus $100, that’s $38,900 a year. In Victoria, the same $3.5 million would cost $31,650 plus 2.65% of $500,000, or $44,900. Same land value, roughly seven to eight times the tax.
The principal place of residence exemption basics
Land tax generally doesn’t apply to your own home, known as the principal place of residence (PPR). Revenue NSW, RevenueSA, Tasmania and the ACT all say so on their land tax pages. But the exemption only covers the home you actually live in. A granny flat or second dwelling you rent out can change the picture. So check how your state treats it before you build. The granny flat rules guide covers the approval side. The same goes for a dual occupancy where you keep one half as a rental.
Ownership structure matters too. Trusts in Victoria and companies or trusts in Queensland pay from far lower thresholds than individuals. And in NSW, an occupier with less than a 25% share no longer qualifies at all. So a family arrangement that worked five years ago might now trigger a bill.
What’s still missing / not confirmed
- Victoria’s official table. The State Revenue Office pages didn’t load in full for this article. So the Victorian figures come from published summaries that say they were checked against SRO’s 2026 rates.
- NSW 2027 threshold. Revenue NSW hasn’t published the threshold for the 2027 land tax year yet. That one locks in at midnight on 31 December 2026.
- Valuations. Your taxable value comes from the Valuer-General or the state’s averaging method, not your purchase price. So your real number could sit well above or below $700,000.
- Tasmania 2026-27. The Tasmanian page still shows rates “from 1 July 2025”, with nothing newer listed.
Editorial take: the land tax by state numbers punish concentration far more than they punish any single state. Once you’re past one or two properties, spreading land across borders can save more each year than a lower interest rate would. Still, buying in Queensland or SA just to dodge land tax is not advisable. Instead, a high-threshold state is the better place for the largest land holding, and keep cheaper blocks elsewhere.
The ACT also calls for care. At almost $8,700 a year on a $700,000 AUV, land tax there can wipe out a big slice of the rent.
Comparing states before you buy? Then read the stamp duty by state guide for the upfront cost, and the negative gearing and CGT explainer for the after-tax picture.
This article is general information based on Revenue NSW, the Queensland Revenue Office, RevenueSA, the WA Department of Treasury and Finance, the Tasmanian State Revenue Office and the ACT Revenue Office at publication. It isn’t financial or tax advice. Rates, thresholds and exemptions can change, so check your own assessment with your state revenue office or an accountant.
