Land tax catches many investors by surprise. You can own an investment property for years without a bill, then buy a second one in the same state and receive an assessment for both. The trigger is the land tax threshold, and every state sets its own.
This guide lists the 2026 land tax thresholds for each state and territory, explains how aggregation and ownership structures change the answer, and shows the sums with a worked example. Each threshold was checked on the state revenue office website. Where we could not confirm a current figure, we say so and link the revenue office instead.
It is for property investors, trustees and anyone buying a second property. If you are still sorting out the difference between the two main property holding charges, start with our guide to land tax vs council rates.
Key takeaways
- Land tax is a state tax on the unimproved value of land you own, not on the building.
- Your own home is generally exempt in every state that levies land tax.
- Thresholds range from $50,000 in Victoria to $1,075,000 in NSW.
- Trusts and companies often face lower thresholds.
- The Northern Territory has no land tax.
Land tax thresholds at a glance (2026)
| State | General threshold | Trusts or companies | Assessed on |
|---|---|---|---|
| NSW | $1,075,000 (premium $6,571,000), 2026 land tax year | No threshold for special or discretionary trusts | 3-year average land value |
| Victoria | $50,000 | $25,000 for trusts | Land owned at midnight 31 December |
| Queensland | $600,000 (individuals) | $350,000 (companies and trustees) | Land owned at midnight 30 June |
| South Australia | $936,000 (2026-27) | $25,000 for trusts | Land owned at midnight 30 June |
| Western Australia | $300,000 | Not separately confirmed | Land owned at midnight 30 June of the previous year |
| Tasmania | $125,000 (from 1 July 2025) | Not separately confirmed | Assessed land value on your notice |
| ACT | No current figure confirmed | Applies to rented and vacant residential property | See ACT Revenue Office |
| Northern Territory | No land tax | No land tax | Not applicable |
Source: Revenue NSW, SRO Victoria, Queensland Revenue Office, RevenueSA, WA Department of Treasury and Finance, SRO Tasmania, NT Government, checked 7 October 2026.
What is the land tax threshold?
The threshold is the total taxable land value you can hold in a state before land tax applies. Below it, you pay nothing. Above it, the tax is worked out on a sliding scale. In most states land tax is based on unimproved land value, which excludes the house or other buildings.
Two rules make the threshold easy to cross. First, the taxable value of all your non-exempt land in that state is added together. Second, revaluations can push the total over the line even if you buy nothing new.
What are the thresholds in each state?
New South Wales
For the 2026 land tax year the general threshold is $1,075,000 and the premium threshold is $6,571,000. Both have been frozen since 2024. The general rate is $100 plus 1.6% of the land value above $1,075,000. Revenue NSW compares the 3-year average of your land value to the threshold. See Revenue NSW thresholds and rates.
Victoria
Victoria has the lowest threshold: land tax applies when your total taxable land value is $50,000 or more, or $25,000 for trusts. It is assessed on land you own at midnight on 31 December before the assessment is issued. The old $300,000 general threshold no longer applies. Details are on the SRO Victoria land tax page.
Queensland
Individuals pay land tax when their total taxable value at 30 June is $600,000 or more. Companies and trustees start at $350,000. See the QRO individual rates and company and trust rates.
South Australia
For 2026-27 the general threshold is $936,000, with land held on trust taxed from $25,000. Ownership is assessed at midnight on 30 June. See RevenueSA rates and thresholds.
Western Australia, Tasmania, the ACT and the NT
Western Australia charges land tax on land valued over $300,000, plus the metropolitan region improvement tax in Perth. Tasmania’s threshold is $125,000 under the rates that apply from 1 July 2025. The ACT Revenue Office applies land tax to residential property that is not your principal place of residence, such as rented or vacant property; we could not confirm the current ACT charges, so use its calculator. The Northern Territory does not levy land tax.
How do ownership structures change the threshold?
Holding land in a trust or company can mean paying land tax from a much lower value. The Queensland rates show the gap:
| Total taxable value (QLD) | Individual | Company or trustee |
|---|---|---|
| $349,999 or less | Nil | Nil |
| $350,000 to $599,999 | Nil | $1,450 plus 1.7c per $1 over $350,000 |
| $600,000 to $999,999 | $500 plus 1c per $1 over $600,000 | $1,450 plus 1.7c per $1 over $350,000 |
| $1,000,000 to $2,249,999 | $4,500 plus 1.65c per $1 over $1,000,000 | $1,450 plus 1.7c per $1 over $350,000 |
Before buying through a family trust, model the land tax as well as the income tax.
Which land is exempt?
Every state that charges land tax exempts your principal place of residence if you meet its conditions. Other common exemptions cover primary production land and some charitable land, but the detail differs by state. Renting part of your home, running a business from it or moving out can affect the exemption, so check the rules with the revenue office in the state where the land is.
Is land tax deductible?
For a rental property, yes. The ATO rental properties guide 2026 lists land tax as an expense you can claim immediately, for the period the property is rented or held for use to produce rental income, apportioned for any private use. The ATO property pages cover other property tax obligations, and our rental property deductions guide covers the full list. For more on investment land, see land tax on investment property.
Worked example: the same portfolio in two states
Ravi owns two rental properties in Queensland in his own name, with taxable land values of $520,000 and $380,000.
Aggregated value: $520,000 + $380,000 = $900,000, above the $600,000 individual threshold.
Queensland land tax as an individual: $500 + 1c x ($900,000 – $600,000) = $500 + $3,000 = $3,500.
If a trustee owned the same land: $1,450 + 1.7c x ($900,000 – $350,000) = $1,450 + $9,350 = $10,800.
For comparison, a NSW investor whose 3-year average land value totals $1,250,000 would pay $100 + 1.6% x ($1,250,000 – $1,075,000) = $100 + $2,800 = $2,900.
Rule of thumb: Before buying another property in the same state, add its land value to what you already own and check the threshold for your ownership structure, not just the individual one.
Common land tax mistakes
- Using market value: land tax is based on land value from the valuer, not the property price.
- Forgetting aggregation: all your non-exempt land in one state is added together.
- Assuming the individual threshold: trusts and companies can pay from much lower values.
- Using old thresholds: Victoria’s threshold is now $50,000, not $300,000.
- Ignoring unpaid assessments: state revenue offices pursue overdue land tax. See our article on dealing with recovery action and Victorian land tax.
Land tax is only one part of the cost of buying. Our guide to stamp duty on investment property covers the upfront side.
FAQ about land tax thresholds
What is the land tax threshold in Australia?
There is no national threshold because land tax is a state and territory tax. For 2026 the general thresholds checked on the revenue office sites are $1,075,000 in NSW, $50,000 in Victoria, $600,000 for Queensland individuals, $936,000 in South Australia for 2026-27, $300,000 in Western Australia and $125,000 in Tasmania. The Northern Territory has no land tax.
Do I pay land tax on my own home?
Generally no. Each state exempts your principal place of residence if you meet its conditions, such as living in the property. The rules differ between states, especially for homes partly rented out, used for business or left while you live elsewhere, so check the exemption rules with the revenue office where the land is.
Are my properties in different states added together?
No. Each state only taxes land in that state, so you compare your land in each state against that state’s threshold separately. Within one state, the taxable value of all your non-exempt land is generally added together, which is why buying a second investment property in the same state can trigger land tax.
Do trusts and companies pay land tax at different thresholds?
Often, yes. In Victoria the threshold for trusts is $25,000 instead of $50,000. In South Australia trusts start at $25,000. In Queensland companies and trustees are taxed from $350,000 rather than $600,000. In NSW the tax-free threshold does not apply to land held in special or discretionary trusts.
Is land tax tax deductible?
Land tax on a rental property is generally deductible for the period the property is rented or held for use to produce rental income, according to the ATO rental properties guide. You need to apportion it if the property is also used privately. Land tax on vacant land is usually not deductible for individuals under the vacant land rules.
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Land tax depends on your state, structure and timing. Nanak Accountants can estimate your land tax before you buy, review your ownership structure and claim land tax correctly in your rental schedule. Call 1300 626 258 to book a consultation.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against Revenue NSW, SRO Victoria, Queensland Revenue Office, RevenueSA, WA Department of Treasury and Finance, SRO Tasmania, ACT Revenue Office, NT Government and ATO pages on 7 October 2026. Rates and thresholds change, so confirm the current position before acting.
