How does land tax work in Australia — state by state overview?

Land tax is a state and territory tax, not a federal tax, so rules, rates, and thresholds differ by jurisdiction. It applies to the unimproved land value of property you own, excluding your primary residence (principal place of residence) in most states.

Key thresholds and rates as at 2024 (approximate, check each state's revenue office for current figures): NSW has a threshold of $1,075,000 for individuals; VIC applies from $300,000 (surcharges apply); QLD threshold is $600,000 for individuals; SA threshold is $668,000; WA threshold is $300,000; ACT has no threshold for investment properties but a concessional rate for PPR; TAS threshold is $100,000.

If you own multiple properties, land values are aggregated across all your taxable properties in that state when determining whether you exceed the threshold. Land tax is a deductible expense against rental income for investment properties. Foreign buyers typically pay an additional surcharge (foreign investor land tax surcharge) in most states. Land tax is assessed annually, usually on 31 December or 1 January, based on who owns the land at that date.