Land tax in Victoria
Key rules at a glance
| Tax-free threshold | $50,000 general; $25,000 for land held on trust — the lowest thresholds in AustraliaSource: State Revenue Office Victoria |
|---|---|
| Rate | Graduated from 0.3% up to 2.65% at the top bracketSource: SRO Victoria |
| Absentee surcharge | 4% absentee owner surcharge for foreign/absentee ownersSource: SRO Victoria |
| Vacant land | Vacant Residential Land Tax applies to homes left vacant more than 6 months, charged on capital improved value and escalating from 1% (first year) to 2% then 3% for consecutive years (expanded statewide from 2025)Source: SRO Victoria |
How it works in Victoria
Victoria has the most aggressive land tax settings in the country: a tax-free threshold of just $50,000 (and only $25,000 for trusts), meaning even a modest second property is usually caught. Rates climb to 2.65% at the top. On top of the base tax, a 4% absentee owner surcharge applies to foreign and absentee owners, and a Vacant Residential Land Tax now applies statewide to homes left empty for more than six months in a year — charged on capital improved value and escalating from 1% in the first year to 2% then 3% for consecutive years. Land is assessed at 31 December.
State Revenue Office Victoria — Land TaxFrequently asked questions
What is the Victorian land tax threshold?▾
$50,000 for most owners and $25,000 for land held in trust — the lowest in Australia, so most investment properties are above the line.
What surcharges apply to land tax in Victoria?▾
A 4% absentee owner surcharge for foreign and absentee owners, plus a Vacant Residential Land Tax on homes left vacant more than six months — charged on capital improved value at 1% in the first year, rising to 2% then 3% for consecutive years, now applied statewide.
When is Victorian land tax assessed?▾
On the land you own at midnight on 31 December each year, based on the site value determined by the Valuer-General.
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Last 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.