Do I pay land tax on my home?

In most Australian states your principal place of residence is fully exempt from land tax. This means the home you live in as your main residence is not included when the state revenue office calculates your land tax. However, if you rent out part of your home, use it for business purposes, or own it through certain trust structures, the exemption may not apply in full. Investment properties, vacant land, and holiday homes are generally not exempt and will be included in your assessment.

How is land tax calculated if I own multiple properties?

Land tax is not calculated on each property individually. Instead, the state revenue office adds up the unimproved land value of all your taxable properties within that state and applies the tax rates to the combined total. This means owning multiple properties pushes you into higher brackets more quickly. For instance, two properties each valued at $400,000 would be assessed on a combined $800,000 rather than two separate $400,000 amounts, resulting in a higher overall tax rate on the total.

What is the land tax threshold in NSW?

For the 2025/2026 assessment year the general land tax threshold in NSW is approximately $1,075,000. If the total unimproved value of all your taxable land in NSW falls below this amount you will not owe any land tax. Once you exceed the threshold you will pay $100 plus 1.6% on the amount above $1,075,000 up to the premium threshold of approximately $6.5 million, and 2% on any value above that premium level.

Can I reduce land tax through ownership structures?

Yes, using different ownership structures is one of the most common strategies for managing land tax. By holding properties across separate entities such as individual names, companies, discretionary trusts, or self-managed super funds each entity is assessed independently and may receive its own tax-exempt threshold. However, some states apply surcharges for properties held in trusts or by foreign entities, so the savings are not always straightforward. It is important to get tailored advice from a property tax specialist before restructuring your holdings.

When is land tax due?

Land tax is assessed annually and the timing varies by state. In NSW land ownership is assessed as at midnight on 31 December each year, and assessment notices are typically issued from January onwards. Most states follow a similar calendar year assessment date. Payment is generally due within 30 to 90 days of receiving your notice, though many state revenue offices offer instalment plans. Check directly with your state or territory revenue office for specific due dates and payment options relevant to your situation.

Know your land tax before it arrives as a bill

Land tax is the annual cost that catches investors off guard. Unlike stamp duty, you pay it every year. Calculate your obligations across states, see how thresholds work, and understand when your portfolio triggers higher brackets.

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Threshold

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Property

How this is different

Most land tax calculators handle one property in one state. Presm aggregates your total land holdings per state, applies the correct thresholds and rates, and shows you where you sit — including when adding another property pushes you into a higher bracket.

What the calculator covers

State-by-state rates

Every state has different thresholds, rates, and surcharges. We apply the correct formula for each jurisdiction.

Threshold stacking

Land tax is calculated on your total taxable land value, not per property. See how multiple properties stack and compound.

Multi-property modelling

Model your total land tax across two, five, or ten properties. See the marginal cost of adding each new investment.

Bracket alerts

Know exactly when your next purchase will push you into a higher land tax bracket — before you commit.

What is Land Tax?

An annual state government tax calculated on the total unimproved value of all taxable land you own in a given state. Unimproved value means the land itself — not the buildings or improvements sitting on it.

Your principal place of residence is exempt in most states. But investment properties, vacant land, and holiday homes all count. Each state adds up your total taxable land holdings, then applies their rates and thresholds to arrive at your annual bill.

Land tax is assessed per owner per state. If you own property in both NSW and Victoria, each state assesses you separately. The thresholds, rates, and rules differ everywhere — which is why a calculator covering every jurisdiction saves considerable time.

Land Tax Rates by State (2025/2026)

Every Australian state sets its own rules. Some have generous thresholds, others start taxing from the first dollar. Here is where things stand for 2025/2026 — rates can change annually, so verify with your state revenue office.

State	Exempt Threshold	Rates	Notes
NSW	$1,075,000	1.6% up to premium, 2% above	Premium threshold ~$6.5M
VIC	$50,000	Graduated rates up to 2.55%+	Surcharge for trusts and absentees
QLD	$600,000	1% to 2.75% graduated	For individuals; companies and trusts differ
WA	$300,000	Graduated rates up to 2.67%	Metropolitan levy may apply
SA	$450,000	Graduated rates up to 2.4%	Trust surcharge applies
TAS	$25,000	0.55% to 1.5% graduated	Lowest threshold in Australia
ACT	$0 (no threshold)	Fixed charge plus marginal rates	Applies to rental properties only
NT	N/A	No land tax	The Northern Territory does not levy land tax

Rates are approximate for 2025/2026. Foreign owner surcharges and trust surcharges may apply in addition. Always verify with your state revenue office.

Why Land Tax Matters for Investors

With one or two properties, land tax feels minor. As your portfolio grows, it becomes one of the biggest holding costs. The reason: land tax is calculated on combined land value per state, and most states use progressive rates. Every new property does not just bring its own liability — it pushes your existing holdings into a higher bracket.

Three investment properties in Victoria at $200,000 land value each: combined $600,000, taxed on the full amount above threshold. Add a fourth at $250,000 and total jumps to $850,000. The tax on that extra property is not just the marginal rate on $250,000 — it is the difference in total liability across higher brackets for the full $850,000.

This compounding effect is what catches investors off guard. They model rental income and loan repayments for a new purchase but forget the jump in land tax across their entire portfolio. Getting this right before you buy separates sustainable portfolios from overstretched ones.

Land tax minimisation strategies

Spread holdings across states

Land tax is assessed per state. Owning in different states means a separate threshold in each. An investor with $1.5M across three states can pay significantly less than $1.5M in a single state.

Use different ownership structures

Properties in separate entities (individual, company, trust, SMSF) each get their own assessment and potentially their own threshold. But some states surcharge trusts and companies — get proper advice first.

Monitor threshold changes

Thresholds shift and land values get reassessed regularly. What was below the threshold last year might be above it now. Track your valuations and plan acquisitions accordingly.

Object to your land valuation

If the Valuer General has overvalued your land, lodge an objection. A successful challenge reduces your bill for the current year and potentially future years until the next reassessment.

Frequently asked questions

: In most Australian states your principal place of residence is fully exempt from land tax. This means the home you live in as your main residence is not included when the state revenue office calculates your land tax. However, if you rent out part of your home, use it for business purposes, or own it through certain trust structures, the exemption may not apply in full. Investment properties, vacant land, and holiday homes are generally not exempt and will be included in your assessment.
: Land tax is not calculated on each property individually. Instead, the state revenue office adds up the unimproved land value of all your taxable properties within that state and applies the tax rates to the combined total. This means owning multiple properties pushes you into higher brackets more quickly. For instance, two properties each valued at $400,000 would be assessed on a combined $800,000 rather than two separate $400,000 amounts, resulting in a higher overall tax rate on the total.
: For the 2025/2026 assessment year the general land tax threshold in NSW is approximately $1,075,000. If the total unimproved value of all your taxable land in NSW falls below this amount you will not owe any land tax. Once you exceed the threshold you will pay $100 plus 1.6% on the amount above $1,075,000 up to the premium threshold of approximately $6.5 million, and 2% on any value above that premium level.
: Yes, using different ownership structures is one of the most common strategies for managing land tax. By holding properties across separate entities such as individual names, companies, discretionary trusts, or self-managed super funds each entity is assessed independently and may receive its own tax-exempt threshold. However, some states apply surcharges for properties held in trusts or by foreign entities, so the savings are not always straightforward. It is important to get tailored advice from a property tax specialist before restructuring your holdings.
: Land tax is assessed annually and the timing varies by state. In NSW land ownership is assessed as at midnight on 31 December each year, and assessment notices are typically issued from January onwards. Most states follow a similar calendar year assessment date. Payment is generally due within 30 to 90 days of receiving your notice, though many state revenue offices offer instalment plans. Check directly with your state or territory revenue office for specific due dates and payment options relevant to your situation.

Calculate your land tax across every state

Thresholds, rates, surcharges, multi-property stacking. See the full picture.