The Finance AlgorithmTFA

Land Tax Calculator

Calculator

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

Free to useNo data storedAI insightsUpdated: February 2026

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.

Enter Your Details

Enter Your Details

$

Land value from your council rates notice (NOT property market value)

Land tax rates and thresholds vary significantly by state

Foreign owners pay an additional surcharge in most states

Some states charge extra for vacant or underutilised land

$

Combined land value of ALL your properties in this state (land tax is aggregated)

Other investment properties you own in the same state

Real-World Examples

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.

Frequently Asked Questions

Glossary

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.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Enter the unimproved land value (from your rates notice, not the property market value).
  2. Select your state — rates vary significantly.
  3. Choose your owner type — foreign owners pay surcharges.
  4. Select the property use.
  5. Add total land holdings if you own multiple properties in the same state.
  6. See your annual land tax liability and effective rate.
Key Information
  • 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 Mistakes
  • 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.
Ask AI anything