How do I find my property's land value for land tax purposes?

The unimproved land value used for land tax is provided annually by your state's valuer-general office. It is shown on your council rates notice as 'land value', 'site value' or 'unimproved capital value' (depending on the state). This is the value the revenue office uses to assess your land tax. Note this is different from the improved property market value (which includes buildings), which is typically 30-60% higher than the land value alone.

My only investment property is below the state threshold -- do I still need to register?

In most states you are only required to register for land tax if your total investment land value exceeds the threshold. However some states require registration regardless of the threshold so the revenue office can track your portfolio. Check your state revenue office's registration requirements. If you are below the threshold now but might exceed it in future (through a second purchase or annual land value increases), it is worth monitoring closely.

Is land tax deductible for tax purposes?

Yes -- land tax paid on investment properties is a deductible expense for Australian income tax purposes. It is deducted in the year it is paid. Include it as an annual expense in your rental property tax return and in your negative gearing calculations. This reduces the effective cost of land tax by your marginal tax rate -- at 37% marginal rate, a $5,000 land tax bill costs only $3,150 after the tax deduction.

Land Tax Estimator — Free Real Estate Calculator

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Investor has just bought their second investment property and is wondering if they now have a land tax liability. They know it exists but have no idea what they might owe or when it is assessed.

Land Tax Estimator

Tax

Land value ($)

Unimproved land value (from council rates notice)

State

Property type

Land tax applies to investment and holiday properties — not your primary residence.
Thresholds (approx 2024): NSW $1.075M · VIC $300K (2024 threshold) · QLD $600K · WA $300K · SA $723K · TAS $25K · ACT (varies)
Rates are applied progressively above the threshold. Foreign owners face additional surcharges in most states.

Reference: Revenue NSW — Land Tax

ℹ️ Results are estimates for planning purposes. Verify with current standards and a qualified professional.

1 What this calculator does

Estimates annual land tax liability by Australian state from unimproved land value, ownership type and state. Uses 2024 approximate thresholds and rates. Flags foreign owner surcharges where applicable.

2 Formula & professional reasoning

Land tax = Fixed amount + (Land value - Threshold) x Rate
NSW example: $100 + (Land value - $1,075,000) x 1.6%
VIC example: $375 + (Land value - $300,000) x 0.975% (up to $600K)
QLD example: $500 + (Land value - $600,000) x 1.0% (up to $1M)
(Rates and thresholds vary by state and are updated annually)

Land tax in Australia applies to investment properties and is assessed on the unimproved land value (not the improved property value including buildings). Each state has a free threshold below which no land tax is payable. Importantly, the threshold applies to the total land value of all investment properties owned in a state -- not to each property individually. Foreign owners pay an additional surcharge of 2-4% in most states.

3 Worked examples

⚠️ Illustrative example only — not clinical or professional instruction.

Basic

NSW investor -- single investment property

Given: State: NSW | Land value: $850,000 | Ownership type: individual

Working: NSW threshold 2024: $1,075,000 | $850,000 is below threshold | Land tax: $0

Answer: Land tax: $0 -- below NSW threshold

💡 The investor pays no NSW land tax on this property. However if they buy another NSW investment property and the combined land value exceeds $1,075,000, land tax will apply to the combined excess.

Standard

VIC investor -- two investment properties

Given: State: VIC | Combined land value: $820,000 | Ownership: individual

Working:

VIC threshold 2024: $300,000 | Taxable amount: $820,000 - $300,000 = $520,000 | Rate on $300K-$600K: $375 + ($300,000 x 0.00975) = $3,300 | Rate on $600K-$820K (above $600K): $2,775 + ($220,000 x 0.0125) = $5,525 | Total land tax: approximately $5,525

Answer: Estimated annual land tax: ~$5,525

💡 VIC has a lower threshold ($300K) than NSW ($1.075M) -- investors with even moderate holdings in VIC quickly attract land tax liability.

Advanced

Foreign investor surcharge -- NSW

Given: State: NSW | Land value: $1,500,000 | Ownership: foreign individual

Working:

Normal NSW land tax: $100 + ($1,500,000-$1,075,000) x 0.016 = $100 + $6,800 = $6,900 | Foreign owner surcharge: $1,500,000 x 0.04 = $60,000

Answer: Normal land tax: $6,900 | Foreign surcharge: $60,000 | Total: $66,900/yr

💡 Foreign owner surcharges dramatically change the investment economics. An $60,000 annual surcharge on $1.5M of land value is a 4% annual drain on the land value. This is in addition to normal land tax.

4 Sanity check

Land tax thresholds 2024 (approx)

NSW: $1,075,000 | VIC: $300,000 | QLD: $600,000 | WA: $300,000 | SA: $723,000 | TAS: $25,000

Thresholds are indexed annually -- check your state revenue office for the current year's threshold.

Land tax applies to combined holdings

All investment properties in one state aggregated -- threshold applies once across all properties

Two NSW properties with land values of $600K each = $1,200,000 combined -- above the $1.075M threshold.

Principal place of residence is exempt

Your home is not subject to land tax in any Australian state

This is assessed as of 31 December each year -- the property must be your principal residence on that date.

Land value vs property value

Land tax is assessed on unimproved land value only -- buildings and improvements are excluded

Your local council rates notice shows site value (unimproved land value). This is the figure used for land tax, not the property's market value.

5 Common errors

Error	Cause	Consequence	Fix
Using property market value instead of unimproved land value	Not knowing that land tax uses a different valuation basis	Land tax calculated on the wrong figure -- can be 30-50% higher than the correct land value	Land tax is assessed on the unimproved land value (site value), which excludes buildings and improvements. This is shown on your council rates notice as 'land value' or 'site value'.
Calculating land tax on each property separately	Treating each property as an independent assessment	Missing that the threshold applies to the aggregated portfolio	All investment properties in the same state are aggregated. The threshold applies once to the total, not individually. A portfolio of three NSW properties with $400K land value each has a combined $1.2M land value -- well above the $1.075M threshold.
Not registering for land tax when threshold is exceeded	Assuming the tax authority will identify and bill you	Accumulation of outstanding land tax, penalties and interest	Property investors are legally required to register for land tax if their portfolio exceeds the state threshold. State revenue offices conduct their own assessments using valuation data, but you are responsible for ensuring correct registration.
Not accounting for land tax in property investment decisions	Focusing on rental yield and capital growth without modelling holding costs	Land tax significantly increases the annual holding cost of high-value portfolios	For investors with $1M+ in investment property land values, land tax is a material cost -- $5,000-$25,000+ per year depending on state and portfolio size. Include it in the investment feasibility analysis.