How is land tax calculated?

Land tax = (Total land value − Tax-free threshold) × Applicable rate. The rate increases in tiers as land value rises. All investment land you own in one state is added together first, then tax is calculated on the total.

Is land tax deductible?

Yes, land tax is deductible against your rental income from investment properties. However, it cannot be claimed against employment income. Include it in your Schedule E (rental property deductions) at tax time.

§ Tool · tier 1 · independent

Land Tax Calculator.

Calculate land tax for investment properties across all Australian states. Includes surcharge for foreign owners and tax-free thresholds.

CalculatorFree, no signupOn-deviceupd May 2026

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Land tax is an annual state government tax on investment property land — and it catches many investors by surprise. Unlike stamp duty (one-off), land tax is payable every year and is calculated on the COMBINED value of ALL your investment land in a state. Thresholds range from $0 (QLD, no threshold for companies) to $1.075M (NSW). Rates range from 0.5% to 2.67%+, and foreign owners pay an additional 2-4% surcharge. Your principal place of residence is exempt, but everything else gets aggregated.

§ Worked examples

Real-world scenarios

Single Investment Property — NSW

One investment property in NSW with unimproved land value of $650,000.

Below the NSW threshold of $1.075M — no land tax payable. However, if you buy a second property with $500K land value, your combined holdings of $1.15M exceed the threshold and you'll owe ~$1,312 in land tax.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Unimproved Land Value

The value of the land excluding any buildings, improvements, or structures on it. Determined by the state's Valuer General.

Land Tax Aggregation

The combining of all investment land values you own in a single state to determine the total taxable value and applicable rate.

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Compare upfront stamp duty vs ongoing land tax costs.

How to use

01Enter the unimproved land value (from your rates notice, not the property market value).
02Select your state — rates vary significantly.
03Choose your owner type — foreign owners pay surcharges.
04Select the property use.
05Add total land holdings if you own multiple properties in the same state.
06See your annual land tax liability and effective rate.

Key info

Land tax is based on UNIMPROVED land value, not the property's market value.
Your principal place of residence is exempt in all states.
Land tax is aggregated — all your investment land in a state is combined, potentially pushing you into higher brackets.
NSW threshold: $1.075M (2026). VIC threshold: $50,000. QLD: $600,000 for individuals.
Foreign owner surcharges: NSW 4%, VIC 4%, QLD 2%, SA 2%, WA 4%.

Pro tips

Spread properties across different states to take advantage of separate thresholds.
Check if your trust structure triggers the lower threshold — in some states, trusts have $0 threshold.
Land tax is NOT tax-deductible against your employment income, but IS deductible against rental income.
Object to your land valuation if you believe it's too high — you can request a review from the Valuer General.

Avoid these

Not knowing you owe land tax — the state doesn't always send you a bill automatically; you must register.
Using property market value instead of unimproved land value — land tax is on land only, not buildings.
Forgetting about aggregation — buying a second property can trigger land tax on BOTH properties.
Not claiming the deduction — land tax paid is deductible against rental income.

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.

Last updated · May 2026