The Answer
Varies by state — $0 on your home
Land tax is calculated on the unimproved value of land you own (excluding your primary residence). Each state has different thresholds and rates.
Key Points
- Your home is exempt — you don't pay land tax on your principal place of residence
- Investment properties and vacant land — these are subject to land tax
- State-based — each state has different thresholds and rates
- Annual — assessed each year based on your total landholdings
Thresholds (Approximate)
| State | Tax-Free Threshold | Top Rate |
|---|---|---|
| NSW | ~$1,075,000 | 1.6%–2% |
| VIC | ~$50,000 | Up to 2.55% |
| QLD | ~$600,000 | 1.65%–2.25% |
| WA | ~$300,000 | 0.25%–2.67% |
| SA | ~$763,000 | 0.5%–2.4% |
| TAS | ~$100,000 | 0.55%–1.5% |
| ACT | No threshold (all land taxed) | 0.54%–1.14% |
| NT | No land tax in the NT | |
Thresholds approximate and subject to annual indexation. Check with your state revenue office.
For Investors
Land tax is a deductible expense against your rental income. It's calculated on the combined unimproved value of all your investment land in the state — so owning multiple properties pushes you into higher brackets faster.
Frequently Asked Questions
Do I pay land tax on my home?
No. Your principal place of residence is exempt from land tax in all states.
Is land tax deductible?
Yes. For investment properties, land tax is fully tax deductible against your rental income.
What Changed
Apr 2026
Content verified