Land Tax Australia 2026-27: State-by-State Comparison

Australia land tax comparison 2026-27 state by state

Land tax rates, thresholds, and foreign owner surcharges vary dramatically across Australia's states and territories in 2026-27. NSW has frozen its land tax thresholds since 2024, Victoria's COVID Debt Levy continues until 2033, Queensland assesses land at unimproved value with no changes this year, and the Northern Territory remains the only jurisdiction with no land tax at all.

Data in this article is sourced from state revenue offices, 2026-27 state budget papers, and published tax guides as at 5 July 2026.

Key principles

Across all Australian jurisdictions, the principal place of residence (your own home) is exempt from land tax. Land tax is an annual levy on the unimproved value of land you own, assessed as at midnight on the liability date (usually 30 June or 1 July). Each state calculates it differently — different thresholds, different rates, and different surcharges for foreign owners, trusts, and companies.

New South Wales

NSW land tax thresholds have been frozen since the 2024-25 State Budget. The 2026-27 thresholds are:

General threshold: $1,075,000
Premium threshold: $6,571,000

Rates:

General (land value $1,075,001 to $6,571,000): $100 plus 1.6% of land value above $1,075,000
Premium (above $6,571,000): $88,036 plus 2% of land value above $6,571,000

Foreign surcharge: 5% on the full unimproved land value, with no tax-free threshold. A foreign person is someone not ordinarily resident in Australia.

Key features: NSW uses a 3-year average of unimproved land values. Discretionary trusts and special trusts do not receive the tax-free threshold. Transfer duty and land tax revenue has been revised down by $8.4 billion over four years to 2029-30 due to weaker property market outlook.

Victoria

Victoria's land tax settings are unchanged for 2026-27, but the state's low threshold and COVID Debt Levy make it one of the most expensive jurisdictions for property investors.

General threshold (individuals): $50,000 (frozen until 2033)
Trust threshold: $25,000

Absentee Owner Surcharge: 4% on taxable land value on top of regular land tax.

COVID Debt Levy: Continues until 30 June 2033, forecast to raise $1.2 billion in 2026-27. The levy adds a surcharge to the tax calculated at standard rates.

Vacant Residential Land Tax (VRLT): 1% for vacancy exceeding 6 months, 3% for long-term vacancies. From 1 January 2026, applies to undeveloped residential land in metro Melbourne idle for 5+ years. The State Revenue Office has reported 90%+ non-compliance rates in investigations, with $888 million in assessed liabilities.

Victoria's Commercial and Industrial Property Tax (CIPT) reform, commenced 1 July 2024, transitions commercial and industrial property from stamp duty to an annual tax. Over 12,000 properties have entered, saving businesses an estimated $714 million in transfer duty over four years.

Queensland

Queensland assesses land tax on the unimproved land value (land only, excluding buildings). All freehold land owned in Queensland is aggregated to determine the tax bracket.

Individual rates 2026-27 (threshold: $600,000):

$0–$599,999: Nil
$600,000–$999,999: $500 plus 1.0 cent per dollar over $600,000
$1,000,000–$2,999,999: $4,500 plus 1.65 cents per dollar over $1,000,000
$3,000,000–$4,999,999: $37,500 plus 1.25 cents per dollar over $3,000,000
$5,000,000–$9,999,999: $62,500 plus 1.75 cents per dollar over $5,000,000
$10,000,000+: $150,000 plus 2.25 cents per dollar over $10,000,000

Company and trustee rates (threshold: $350,000):

$0–$349,999: Nil
$350,000–$2,249,999: $1,450 plus 1.7 cents per dollar over $350,000
$2,250,000–$4,999,999: $33,750 plus 1.5 cents per dollar over $2,250,000
$5,000,000–$9,999,999: $75,000 plus 2.25 cents per dollar over $5,000,000
$10,000,000+: $187,500 plus 2.75 cents per dollar over $10,000,000

Foreign surcharge: 3% on (taxable value minus $350,000) for foreign companies and trustees. Absentee individual rates embed the surcharge into the progressive scale.

Property held in trust can pay approximately 5.7 times more land tax than the same portfolio held personally. Queensland has committed to no new or increased taxes. Land tax is forecast to raise $3.162 billion in 2026-27.

Western Australia

Threshold: $300,000
$300,001–$420,000: $300 flat
$420,001–$1,000,000: $300 plus 0.25c per dollar over $420,000
$1,000,001–$1,800,000: $1,750 plus 0.90c per dollar over $1,000,000
$1,800,001–$5,000,000: $8,950 plus 1.80c per dollar over $1,800,000
$5,000,001–$11,000,000: $66,550 plus 2.00c per dollar over $5,000,000
Over $11,000,000: $186,550 plus 2.67c per dollar over $11,000,000

Metropolitan Region Improvement Tax: 0.14c per dollar above $300,000 for Perth metro properties.

Build-to-rent land tax exemption increased from 50% to 75% in February 2026.

South Australia

SA adjusts land tax thresholds annually based on site value changes:

Threshold A: $936,000 — Nil
$936,001–$1,504,000: 0.5% of value above $936,000
$1,504,001–$2,188,000: $2,840 plus 1.0% above $1,504,000
$2,188,001–$3,504,000: $9,680 plus 2.0% above $2,188,000
Over $3,504,000: $36,000 plus 2.4% above $3,504,000

Land held on trust has a much lower starting threshold of $25,000 before the standard thresholds apply. SA does not impose a foreign owner surcharge on annual land tax.

Tasmania

Threshold: $125,000
$125,000–$499,999: $50 plus 0.45% above $125,000
$500,000+: $1,737.50 plus 1.5% above $500,000

Foreign Investor Land Tax Surcharge (FILTS): 2% on residential land owned by foreign persons from the first dollar of land value, with no tax-free threshold.

Australian Capital Territory

The ACT uses a unique system of general rates replacing stamp duty revenue since 2012. For investment properties, ACT land tax applies with no tax-free threshold — every investor-held residential block is liable.

Rates range from 0.54% to 1.14% based on a sliding land value scale. There is no foreign-owner land tax surcharge. Owner-occupied properties pay general rates only, not land tax.

The general rates formula combines a fixed charge with a valuation charge: Rates = Fixed Charge + (rating factor % × AUV), where AUV is a 5-year average of unimproved values.

Northern Territory

No land tax exists in the NT. It is the only jurisdiction in Australia that does not levy land tax. Property owners pay only council rates and stamp duty at purchase. There is no foreign buyer stamp duty surcharge either, making the NT the most investor-friendly jurisdiction for holding costs.

Foreign surcharge comparison at a glance

Here are the foreign owner land tax surcharges across each state:

NSW: 5% surcharge, no threshold
VIC: 4% Absentee Owner Surcharge
QLD: 3% effective surcharge (embedded in absentee rates)
WA: No specific foreign land tax surcharge
SA: No foreign owner surcharge on land tax
TAS: 2% FILTS, no threshold
ACT: No foreign-owner surcharge
NT: No land tax

FAQ

Is my principal place of residence exempt from land tax?

Yes, in every state and territory, your primary home is exempt from land tax. You may need to nominate which property is your PPR if you own multiple properties.

Why is Queensland land tax so much higher for trusts?

Queensland applies a significantly lower threshold ($350,000 vs $600,000 for individuals) and higher rates for companies and trustees. The same portfolio in a trust can pay approximately 5.7 times more than if held in personal names.

Can I deduct land tax on my tax return?

Yes. Land tax paid on income-producing investment properties is fully tax-deductible. Land tax on your principal place of residence is not deductible because the property does not produce assessable income (and is generally exempt anyway).

What is Victoria's COVID Debt Levy?

An additional surcharge on land tax, legislated until 30 June 2033, introduced to repay COVID-era state debt. It adds a significant amount to the standard land tax calculation for Victorian property investors.

Which state has the most favourable land tax for investors?

The NT has zero land tax, making it the clear leader for holding costs. Among the mainland states, WA has a relatively high $300,000 threshold, while Victoria's $50,000 threshold is the lowest, capturing the most property owners.