Land Tax Calculator
Property & Jurisdiction Details
Investor Tax Deduction Shield
In Australia, land tax incurred on income-producing investment properties is 100% tax-deductible against rental income under Section 8-1 of the ITAA 1997.
State-by-State Land Tax Rules & Assessment Guide
1. Unimproved Land Value vs Capital Value
Land tax is assessed solely on the unimproved site value of your property determined by the Valuer-General, excluding any buildings, homes, or structural improvements. In Victoria and South Australia, this appears on your council rates notice as "Site Value" (SV).
2. The NSW 3-Year Averaging Rule
Revenue NSW smooths property market fluctuations by averaging your land value over a 3-year rolling period. For 2026 assessments, your taxable value is the average of the 1 July 2023, 2024, and 2025 valuations. The NSW general threshold is frozen at $1,075,000.
3. Discretionary Trust Surcharges
In NSW, special/discretionary trusts lose the $1,075,000 threshold and pay a flat 1.6% from the very first dollar. In Victoria, trusts face a reduced threshold of $25,000 (down from $300,000), and in South Australia, trusts are taxed from $25,000.
4. Foreign Owner Surcharges
Foreign purchasers face surcharges on top of standard land tax: NSW levies 5.0%, Victoria levies 4.0%, Queensland levies 3.0%, and Tasmania levies 2.0%. These surcharges apply across the entire land value with zero threshold.
Australian State Land Tax Thresholds (2025–2026)
| Jurisdiction | General Threshold (Individuals) | Trust Threshold | Top Rate | Foreign Surcharge |
|---|---|---|---|---|
| NSW | $1,075,000 (Frozen) | $0 (No Threshold) | 2.0% (>$6.571M) | 5.0% |
| VIC | $50,000 (COVID Levy) | $25,000 | 2.65% (>$3.0M) | 4.0% |
| QLD | $600,000 | $350,000 | 2.25% (>$10M) | 3.0% |
| SA | $936,000 | $25,000 | 2.4% (>$3.504M) | N/A |
| WA | $300,000 | $300,000 | 2.67% (>$11M) | 0.14% MRIT (Perth) |
| TAS | $125,000 | $125,000 | 1.5% (>$500k) | 2.0% |
| ACT | $0 ($1,778 Base Charge) | $0 (Assessed per AUV) | 1.26% (>$2.0M) | 0.75% |
| NT | $0 (No Land Tax) | $0 (No Land Tax) | Nil | Nil |