Land tax for property investors, state by state
Land tax is an annual state tax on the unimproved value of land you own that is not your main residence — which includes most investment properties. Each state and territory sets its own tax-free threshold, rate scale, and assessment date, and the Northern Territory does not levy it at all. The figures below are for the 2025–26 year; because land tax is reassessed annually, confirm the current threshold with your state revenue office before relying on it.
Compare every state and territory
| State | Tax-free threshold | Top rate | Assessment date | Surcharges |
|---|---|---|---|---|
| QLD | $600,000 (individuals) | 2.25%+ (top brackets) | 30 June | Foreign surcharge on company/trustee absentees |
| NSW | $1,075,000 | 2% (premium, over $6,571,000) | 31 December | Foreign owner surcharge land tax applies |
| VIC | $50,000 ($25,000 for trusts) | 2.65% | 31 December | +4% absentee owner; vacant residential 1–3% |
| SA | $833,000 | 2.4% | 30 June | Trust surcharge below $25,000 threshold |
| WA | $300,000 | ~2.67% | 30 June | No general absentee surcharge |
| TAS | $125,000 | 1.5% (above $500,000) | 1 July | Foreign investor land tax surcharge applies |
| NT | No land tax levied | N/A | N/A | N/A |
| ACT | No threshold (applies to all rentals) | ~1.14% + fixed charge | Quarterly | Foreign ownership surcharge applies |
Select a state for the full rules, key facts with sources, and FAQs.
Common questions
Do I pay land tax on my investment property?▾
Usually yes, if the total taxable land value you own in a state is above that state's threshold. Your main residence is generally exempt. Land tax is assessed per state on the land you hold there, so owning in several states can mean several separate assessments.
Which state has the lowest land tax?▾
The Northern Territory levies no land tax at all. Among the states, Victoria has the lowest tax-free threshold ($50,000) and some of the highest rates, while NSW ($1,075,000) and SA ($833,000) have the highest thresholds, so smaller portfolios there can fall under the line.
Is land tax deductible against rental income?▾
Land tax on an income-producing rental property is generally deductible in the year it is incurred. It is claimed against your rental income, not your main-residence land. Confirm timing and apportionment with your accountant, especially for part-year or mixed-use properties.
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Get startedLast reviewed 9 June 2026
Figures reflect the 2025–26 financial year and tenancy laws in force as at mid-2026. State rules change often — always confirm the current figure with the linked authority before you rely on it.
This is general information for Australian landlords, not legal, financial, or tax advice. PropAlly is a software provider, not a law firm, accountant, or licensed adviser. Verify your obligations with the relevant state authority or a qualified professional.