Land Tax Rates Australia 2025-26: State Comparison

Land tax rates and thresholds vary significantly across Australian states and territories. An investor with $500,000 in taxable land value pays nothing in NSW, Queensland, South Australia, or the Northern Territory, but faces approximately $1,950 in Victoria, $1,738 in Tasmania, and over $6,000 in the ACT. This guide compares land tax rates, thresholds, and rules across all eight jurisdictions for the 2025-26 financial year.

What is land tax?

Land tax is a state-based annual tax on the unimproved value of land you own. It is separate from council rates and stamp duty. Each state and territory sets its own thresholds, rate brackets, assessment dates, and exemptions. Your principal place of residence is generally exempt in every jurisdiction. Land tax applies primarily to investment properties, vacant land, commercial land, and holiday homes.

The taxable value is the unimproved or site value of the land — not the market value of the property and not including buildings or other improvements. You can find this value on your state land valuation notice, council rates notice, or land tax assessment.

Land tax is assessed on the aggregate value of all your taxable land within a state, not property by property. This aggregation rule catches many investors off guard.

Summary comparison table: all states and territories

The table below compares the key land tax settings for individual owners across all eight Australian states and territories.

State/Territory	Tax-Free Threshold	Top Rate	Assessment Date	Foreign Surcharge	Key Feature
NSW	$1,075,000	2.0%	31 December	5%	Highest threshold on the eastern seaboard
VIC	$50,000	2.65%	31 December	4%	Lowest threshold; COVID Debt Repayment Plan changes (2024-2033)
QLD	$600,000	2.25%	30 June	3%	Company/trust threshold is only $350,000
WA	$300,000	2.67%	30 June	None	Flat $300 fee for $300K-$420K bracket
SA	$833,000	2.4%	Financial year	None	Thresholds adjusted annually
ACT	No threshold	1.26%	Quarterly	0.75%	Fixed charge ($1,693) plus valuation charge on all investment land
TAS	$125,000	1.5%	1 July	2% (from 2022)	Simple two-bracket structure
NT	No land tax	0%	N/A	None	Only jurisdiction with no land tax

Sources: (Revenue NSW — How land tax is calculated) (SRO Victoria — Land tax current rates) (QRO Queensland — Land tax rates for companies and trusts) (WA Government — Land tax assessment) (RevenueSA — Land tax rates and thresholds) (ACT Revenue Office — Calculating land tax) (SRO Tasmania — Rates of land tax) (NT.GOV.AU — Property taxes). Retrieved February 2026.

State-by-state breakdown

New South Wales

NSW has the highest tax-free threshold on the eastern seaboard at $1,075,000 (Revenue NSW — How land tax is calculated), fixed from 1 January 2025 and scheduled for review by June 2027. This means many NSW investors with a single property pay no land tax at all.

Rate brackets (individual owners):

Taxable Land Value	Rate	Tax Payable
$0 - $1,075,000	Nil	Nil
$1,075,001 - $6,571,000	1.6%	$100 + 1.6% of value above $1,075,000
Above $6,571,000	2.0%	$88,036 + 2.0% of value above $6,571,000

Assessment date: 31 December each year.

Key exemptions: Principal place of residence, primary production land (farming), retirement villages, certain boarding houses, charitable institutions.

Foreign owner surcharge: 5% on the taxable value of all residential land owned by foreign persons. This is the highest foreign surcharge in Australia.

Important: NSW thresholds were previously adjusted annually based on land value changes. From 1 January 2025, thresholds are fixed and will not change until at least the June 2027 review.

For detailed NSW rates and a worked example, see our NSW land tax calculator.

Victoria

Victoria has the lowest land tax threshold in Australia at just $50,000 (SRO Victoria — Land tax current rates), meaning most investment property owners in Victoria pay land tax. From the 2024 land tax year, land tax rates and thresholds changed under Victoria’s COVID Debt Repayment Plan (legislated to apply until 30 June 2033) and are incorporated into the applicable rates.

Land tax general rates (from 2024 land tax year):

Total taxable value of land holdings	Land tax payable
< $50,000	Nil
$50,000 to < $100,000	$500
$100,000 to < $300,000	$975
$300,000 to < $600,000	$1,350 plus 0.3% of amount > $300,000
$600,000 to < $1,000,000	$2,250 plus 0.6% of amount > $600,000
$1,000,000 to < $1,800,000	$4,650 plus 0.9% of amount > $1,000,000
$1,800,000 to < $3,000,000	$11,850 plus 1.65% of amount > $1,800,000
$3,000,000 and over	$31,650 plus 2.65% of amount > $3,000,000

Assessment date: 31 December each year.

Key exemptions: Principal place of residence, primary production land, rooming houses (certain conditions), charitable and religious institutions, retirement villages.

Trust surcharge rates: Victoria has separate trust surcharge rates with a lower threshold (from $25,000) than the general rates.

Foreign owner surcharge: 4% (absentee owners, including foreign persons and companies).

At a taxable land value of $500,000, Victorian land tax is approximately $1,950 — while the same land value attracts $0 in NSW, QLD, and SA.

For detailed Victorian rates, see our Victoria land tax calculator.

Queensland

Queensland applies a $600,000 threshold for individual owners (QRO Queensland — Land tax calculate (individual)) with rates starting at $500 plus 1.0% on the value above $600,000. Company and trust thresholds are lower at $350,000.

Rate brackets (individual owners):

Taxable Land Value	Rate	Tax Payable
$0 - $600,000	Nil	Nil
$600,001 - $1,000,000	1.0%	$500 + 1.0% above $600,000
$1,000,001 - $3,000,000	1.65%	$4,500 + 1.65% above $1,000,000
$3,000,001 - $5,000,000	1.25%	$37,500 + 1.25% above $3,000,000
$5,000,001 - $10,000,000	1.75%	$62,500 + 1.75% above $5,000,000
Above $10,000,000	2.25%	$150,000 + 2.25% above $10,000,000

Assessment date: 30 June each year.

Key exemptions: Principal place of residence (including up to 2 hectares in most cases), primary production land, charitable institutions, retirement villages.

Foreign owner surcharge: 3% (foreign companies and trustees of foreign trusts).

Interstate holdings rule (reversed): In 2022, Queensland announced a plan to include interstate land holdings when assessing QLD land tax rates. This controversial policy was reversed in 2023. Queensland now only assesses land tax on land located within Queensland.

For detailed QLD rates, see our Queensland land tax calculator.

Western Australia

Western Australia has a $300,000 threshold (WA Government — Land tax assessment) with a distinctive flat-fee bracket between $300,000 and $420,000 where a flat $300 charge applies regardless of the exact land value.

Rate brackets (individual owners):

Taxable Land Value	Rate	Tax Payable
$0 - $300,000	Nil	Nil
$300,001 - $420,000	Flat fee	$300 (flat fee, no marginal rate)
$420,001 - $1,000,000	0.25%	$300 + 0.25% above $420,000
$1,000,001 - $1,800,000	0.9%	$1,750 + 0.9% above $1,000,000
$1,800,001 - $5,000,000	1.8%	$8,950 + 1.8% above $1,800,000
$5,000,001 - $11,000,000	2.0%	$66,550 + 2.0% above $5,000,000
Above $11,000,000	2.67%	$186,550 + 2.67% above $11,000,000

Assessment date: 30 June (financial year basis).

Key exemptions: Principal place of residence, land used exclusively for primary production, charitable purposes, certain caravan parks.

Foreign owner surcharge: None. WA is one of the few jurisdictions that does not impose a foreign owner surcharge on land tax.

WA’s low starting rates and lack of foreign surcharge make it one of the more affordable states for land tax on moderate land values. An investor with $500,000 in WA land pays just $500 — an effective rate of 0.10%.

For detailed WA rates, see our Western Australia land tax calculator.

South Australia

South Australia has the second-highest threshold in Australia at $833,000 (2025-26) (RevenueSA — Land tax rates and thresholds), behind only NSW. SA thresholds are adjusted annually based on changes in property site values, so the exact figures change each financial year.

Rate brackets (individual owners, 2025-26):

Taxable Land Value	Rate	Tax Payable
$0 - $833,000	Nil	Nil
$833,001 - $1,338,000	0.5%	0.5% of value above $833,000
$1,338,001 - $1,946,000	1.0%	$2,525 + 1.0% above $1,338,000
$1,946,001 - $3,116,000	2.0%	$8,605 + 2.0% above $1,946,000
Above $3,116,000	2.4%	$32,005 + 2.4% above $3,116,000

Assessment date: Financial year (1 July - 30 June).

Key exemptions: Principal place of residence, primary production land, retirement villages, charitable institutions, supported residential facilities.

Foreign owner surcharge: None.

Important: SA thresholds and brackets change each year. Always verify the current year rates at revenuesa.sa.gov.au before relying on these figures for financial decisions.

For detailed SA rates, see our South Australia land tax calculator.

Australian Capital Territory

The ACT takes a fundamentally different approach to land tax. There is no tax-free threshold — all investment land is subject to a fixed charge plus a valuation-based charge calculated on the average unimproved value (AUV) of the property (ACT Revenue Office — Calculating land tax). The ACT is also unique in assessing land tax quarterly.

Rate structure (from 1 July 2025):

Component	Rate	Amount
Fixed charge	Flat	$1,693 per year
AUV $0 - $150,000	0.54%	0.54% of AUV
AUV $150,001 - $275,000	0.64%	$810 + 0.64% above $150,000
AUV $275,001 - $1,000,000	1.24%	$1,610 + 1.24% above $275,000
AUV $1,000,001 - $2,000,000	1.25%	$10,600 + 1.25% above $1,000,000
Above $2,000,000	1.26%	$23,100 + 1.26% above $2,000,000

Assessment date: Quarterly (1 July, 1 October, 1 January, 1 April). The tax payable for each quarter is one-quarter of the annual amount.

Key exemptions: Principal place of residence, rural land used for primary production, religious and charitable institutions, public housing.

Foreign owner surcharge: 0.75% on residential land.

What is the AUV? The average unimproved value (AUV) is the average of the current and two preceding unimproved land values determined by the ACT Valuer-General. It smooths out year-to-year fluctuations.

The ACT’s no-threshold structure means even low-value investment land is taxed. A property with an AUV of $500,000 faces approximately $6,093 in annual land tax — the highest of any jurisdiction for that land value.

For detailed ACT rates, see our ACT land tax calculator.

Tasmania

Tasmania has a straightforward two-bracket system with a $125,000 threshold (SRO Tasmania — Rates of land tax) and rates of 0.45% and 1.5%.

Rate brackets (general land):

Taxable Land Value	Rate	Tax Payable
$0 - $124,999	Nil	Nil
$125,000 - $499,999	0.45%	$50 + 0.45% above $125,000
$500,000 and above	1.5%	$1,737.50 + 1.5% above $500,000

Assessment date: 1 July each year.

Key exemptions: Principal residence, primary production land, charitable and religious bodies, public statutory authority land.

Foreign owner surcharge: 2% on residential general land acquired by foreign persons on or after 1 July 2022 (State Revenue Office Tasmania — Foreign investor land tax surcharge). Land acquired before that date is not subject to the surcharge unless a further interest is acquired.

Tasmania’s simple rate structure makes it easy to calculate. However, the $125,000 threshold is relatively low, meaning many investment properties attract some land tax.

For detailed Tasmanian rates, see our Tasmania land tax calculator.

Northern Territory

The Northern Territory is the only Australian jurisdiction that does not levy land tax (NT.GOV.AU — Property taxes). Property investors in the NT pay no land tax regardless of how many properties they own or the total land value.

While there is no land tax, NT property investors are still subject to stamp duty on purchase, council rates, income tax on rental income, and capital gains tax on sale. The absence of ongoing land tax can meaningfully improve net rental yield and cash flow compared to the same property in a state with land tax.

For a comparison showing $0 land tax versus other states, see our Northern Territory land tax page.

Worked example: what does a $500,000 property cost in land tax across all states?

The table below shows the estimated annual land tax for a taxable land value of $500,000 held by an individual in each jurisdiction. This is a common land value for investment properties outside of Sydney and Melbourne.

State/Territory	Estimated Annual Land Tax	Effective Rate
NSW	$0 (below threshold)	0%
VIC	~$1,950	~0.39%
QLD	$0 (below threshold)	0%
WA	$500	0.10%
SA	$0 (below threshold)	0%
ACT	~$6,093	~1.22%
TAS	$1,738	~0.35%
NT	$0 (no land tax)	0%

How the VIC figure is calculated: $1,350 + ($500,000 - $300,000) x 0.3% = $1,350 + $600 = $1,950.

How the ACT figure is calculated: Fixed charge of $1,693 plus valuation charge of $810 + $800 + $2,790 = $4,400. Total: $6,093.

How the TAS figure is calculated: $50 + ($500,000 - $125,000) x 0.45% = $50 + $1,687.50 = $1,737.50, rounded to $1,738.

The difference is striking. Over a 10-year holding period, an investor in the ACT would pay approximately $60,930 in land tax on a $500,000 land value — while an investor in NSW, QLD, SA, or the NT would pay nothing for the same value.

Surcharges: foreign owners, trusts, and companies

Land tax does not apply equally to all ownership structures. Several states impose additional charges that can significantly increase the bill.

Foreign owner surcharges

State	Foreign Surcharge	Applied To
NSW	5%	All residential land owned by foreign persons
VIC	4%	All land owned by absentee owners (including foreign persons)
QLD	3%	Foreign companies and trustees of foreign trusts (foreign entities)
ACT	0.75%	Residential land owned by foreign persons
WA	None	—
SA	None	—
TAS	2%	Residential general land acquired by foreign persons from 1 July 2022
NT	None	—

For Queensland, the surcharge is calculated as: (Taxable value - $350,000) x 3%. Tasmania’s foreign investor land tax surcharge (FILTS) applies at 2% of the assessed land value for residential general land acquired by a foreign person on or after 1 July 2022 (State Revenue Office Tasmania — Foreign investor land tax surcharge). Land acquired before that date is not subject to FILTS unless a further interest is acquired.

Trust surcharges

Victoria stands out with separate trust surcharge rates and a lower threshold ($25,000 under trust rates vs $50,000 under general rates). Queensland applies a lower company/trust threshold of $350,000 (vs $600,000 for individuals). Other states may also have different entity-specific schedules — always check with your state revenue office before structuring a purchase through a trust.

Common investor traps

1. Land tax shock on the first bill

Many investors budget for mortgage repayments, insurance, and management fees but forget to account for land tax. Because it is assessed on aggregate land holdings, your first land tax bill can appear after you buy your second or third property and your combined land value crosses a threshold. The land tax calculator can model the impact before purchasing.

2. Aggregation catches you off guard

All your taxable land in a state is added together before thresholds are applied. Two properties each valued at $550,000 in NSW ($1,100,000 total) means you now owe land tax — even though each property individually is below the $1,075,000 threshold.

3. Threshold changes and rising valuations

South Australia adjusts thresholds annually based on property values. Victoria and other states may change thresholds through legislation. Even if thresholds remain the same, rising land valuations can push you above a threshold or into a higher bracket. Review your land valuations and check for updated thresholds every year.

4. Trusts cost more than you expect

Holding property in a trust can trigger lower thresholds and additional surcharges, particularly in Victoria and Queensland. An investor who moves a property into a trust may see their land tax bill increase substantially. Get professional advice on ownership structure before purchasing.

5. Forgetting to object to valuations

If your land valuation seems too high, you generally have the right to object within a set timeframe (often 60 days from the notice). A successful objection can reduce your land tax bill for the current and future years. Do not assume the government valuation is correct — check comparable sales and lodge an objection if warranted.

How land tax impacts investment decisions

Land tax is a meaningful factor when comparing investment properties across states. Consider these scenarios:

State arbitrage: An investor choosing between a $500,000-land-value property in Victoria (~$1,950/year in land tax) versus Western Australia ($500/year) faces a ~$1,450 annual difference. Over 10 years, that is roughly ~$14,500 in additional holding costs — enough to affect whether the property is positively or negatively geared.

Threshold planning: An NSW investor with $1,000,000 in existing land holdings who buys an additional property with $200,000 in land value would cross the $1,075,000 threshold and owe $100 + 1.6% of $125,000 = $2,100 per year. That cost should be factored into the purchase analysis.

Entity structure: Ownership structure can change your land tax rates and thresholds. For example, Victoria has separate trust surcharge rates with a lower threshold than the general rates. Model both scenarios before deciding on ownership structure.

The premium Australian property investment spreadsheet integrates land tax with negative gearing, capital gains tax, rental yield, and multi-year cash flow projections across all states.

Land tax exemptions by state

Every state offers a principal place of residence (PPR) exemption, but the conditions, application processes, and edge cases differ significantly. Below is a state-by-state breakdown of the main exemptions, followed by a cross-state comparison table and common traps.

NSW land tax exemptions

New South Wales offers a PPR exemption for natural persons who continuously occupy the property as their sole or principal residence. Only one PPR exemption can be claimed per family unit, regardless of how many properties you own. From 2026, all persons occupying the property as their home must collectively own at least 25% of the property to qualify.

Renting part of your home: You can rent out one room or self-contained flat within your home and retain the full PPR exemption. If you rent out more than one room or flat, a partial exemption may apply based on the proportion used as your residence.

Temporary absence: If you move out temporarily, you can retain the PPR exemption for up to 6 years, provided the property is not used to produce income during that period. Residents who move into an aged care facility can retain the exemption indefinitely.

Trusts and companies: Properties held by companies or trusts generally cannot receive the PPR exemption. Limited exceptions may apply in specific circumstances.

Other exemptions: Primary production land (with different tests for rural and non-rural areas), boarding houses, aged care facilities, childcare centres, and properties used by non-profit organisations may also be exempt.

Foreign owner surcharge: Foreign persons pay an additional 5% surcharge on all residential land with no threshold — the highest foreign surcharge in Australia.

How to apply: Submit your PPR exemption application via Land Tax Online by 31 March each year.

NSW 25% minimum ownership rule

From 1 February 2024, NSW introduced a minimum ownership threshold for the PPR exemption. All persons who use and occupy the land as their principal place of residence must collectively own at least 25% of the property (Revenue NSW — PPR exemption (deceased estates and 25% rule)) (Revenue NSW — Changes to the PPR exemption (25% ownership rule)).

How it works: The 25% test applies to the combined ownership interest of everyone actually living in the property. If Person A (2% owner) lives in a property while Persons B and C (49% each) own it but live elsewhere, the PPR exemption is not available because the occupying owners hold only 2% — below the 25% threshold.

Joint tenants and tenants in common: Joint tenants each hold an equal undivided share, so two joint tenants each own 50% and easily meet the threshold. For tenants in common, the shares can be unequal, and only the shares held by persons actually occupying the property count toward the 25% test.

Trusts and companies: The 25% rule does not change the existing restriction that properties owned by companies or trusts generally cannot claim the PPR exemption (Revenue NSW — Revenue Ruling LT 082 v6: The principal place of residence exemption).

Transitional provisions: Existing owners who were eligible to claim the PPR exemption before 1 February 2024 and own less than 25% received transitional protection for the 2024 and 2025 land tax years. From the 2026 land tax year, the 25% minimum applies to all owners regardless of when they purchased the property (Revenue NSW — Changes to the PPR exemption (25% ownership rule)).

New purchasers: Persons who purchase or acquire property on or after 1 February 2024 and do not meet the 25% threshold became ineligible for the PPR exemption from the 2025 land tax year onward (Revenue NSW — Changes to the PPR exemption (25% ownership rule)).

Shared equity schemes: The 25% requirement does not apply to participants in government-approved shared equity schemes under section 281 of the Duties Act 1997 (Revenue NSW — Revenue Ruling LT 082 v6: The principal place of residence exemption).

How this differs from other states: No other Australian state imposes a minimum ownership percentage threshold for the PPR exemption. In Victoria, Queensland, WA, SA, and the other jurisdictions, the test is based on occupation and use — not on the proportion of ownership held. The NSW 25% rule is unique and primarily affects arrangements where family members or related parties hold the majority interest while a minor owner occupies the property.

VIC land tax exemptions

Victoria provides a PPR exemption for natural persons who own and occupy the property as their primary home. The exemption is assessed as at 31 December each year.

Renting part of your home: Before 2026, any income derived from the property — including renting a single room — terminated the PPR exemption entirely. This was one of Victoria’s strictest rules. From 2026, a partial exemption may apply where business activity or income from a separate dwelling is involved, softening this restriction.

Temporary absence: You can retain the PPR exemption for up to 6 years if you temporarily move away. You must notify the State Revenue Office (SRO) within 60 days of any change in use or occupancy. Failure to notify may result in loss of the exemption.

Trusts and companies: Trust-owned properties are generally ineligible for the PPR exemption. Limited exceptions exist for fixed trusts, testamentary trusts, and disability trusts where the beneficiary occupies the property as their home. Victoria also imposes separate trust surcharge rates starting from $25,000 in taxable land value — well below the general threshold of $50,000.

Other exemptions: Primary production land (location-dependent rules), rooming houses meeting certain criteria, charitable and religious institutions, and retirement villages may qualify for exemptions.

Absentee owner surcharge: Victoria charges a 4% absentee owner surcharge (from 2024), which applies to foreign persons as well as Australian citizens who are absent from Australia.

How to apply: Claim the exemption through the Notice of Assessment (NOA) process or contact the SRO directly.

QLD land tax exemptions

Queensland offers a home exemption for individuals (not trustees) who occupy the property as their sole or principal place of residence by 30 June each year. The property must be used exclusively as a home, and only one home exemption can be claimed per person.

Renting part of your home: You may let up to 50% of the floor area of your home at market rent and still retain the full home exemption. This is more generous than Victoria (pre-2026) but more restrictive than NSW, which allows renting an entire flat.

Temporary absence: Queensland does not appear to offer a formal temporary absence provision equivalent to NSW or Victoria. If you move out and the property is no longer your home by 30 June, you may lose the exemption.

Absentees: This is a critical distinction — absentees cannot claim the home exemption at all in Queensland, regardless of other circumstances. Notably, New Zealand citizens are classified as absentees for Queensland land tax purposes, which is unique to this state.

Trusts: For a trust-owned property to qualify for the home exemption, all beneficiaries must reside in the property. This is a more restrictive test than most other states.

Other exemptions: Primary production land (must be a genuine commercial operation), charitable institutions, and retirement villages may qualify.

Foreign and absentee surcharges: Foreign companies and trustees of foreign trusts face a 3% surcharge. Absentees also face a separate 3% surcharge.

How to apply: Lodge an exemption claim using Form LT12 with the Queensland Revenue Office.

WA land tax exemptions

Western Australia provides a PPR exemption for owners who use the property as their primary residence as at midnight on 30 June each year. The exemption is available to natural persons who own and occupy the property.

Mixed-use properties: Partial exemptions may be available where the property is used partly as a residence and partly for other purposes, such as a home office or business.

Special exemptions: WA provides exemptions in several specific situations:

• Building a new home: If you are constructing a new residence, an exemption may apply during the building period.
• Deceased estates: A specific process exists for claiming exemptions on properties in deceased estates.
• Owner in care: If the owner has moved into a residential care facility, the property may retain its exemption.
• Disability: Properties occupied by a person with a disability may qualify for an exemption.
• Help to Buy: Under the government’s shared equity scheme, the government’s interest in the property is disregarded when calculating land tax.

Foreign owner surcharge: WA does not impose a foreign owner surcharge on land tax, making it one of the more favourable states for overseas investors.

How to apply: Submit your exemption application using Form FLT21 to the Department of Treasury and Finance.

SA land tax exemptions

South Australia provides a PPR exemption for natural persons who own and occupy the property as their principal place of residence as at midnight on 30 June immediately before the relevant financial year (RevenueSA — Exemptions, waiver or relief). Only one PPR exemption can be claimed per person. The property must contain a permanent, non-mobile building designed and constructed primarily for residential purposes — caravans, tents, and other movable accommodation do not qualify (RevenueSA — Residential exemptions).

Joint ownership: Where a property is jointly owned, only one owner needs to reside in the home. However, if the residing owner holds less than a 50% interest, the Commissioner may disallow the exemption if the interest appears to have been created to reduce land tax.

Partial exemptions: A partial exemption may apply where between 25% and 75% of the total floor area of all buildings on the land (including sheds and garages) is used for business or commercial purposes (other than primary production). If business use exceeds 75%, no exemption applies. If business use is below 25%, the full exemption applies (RevenueSA — Residential exemptions).

Owner in care: If the homeowner moves into a residential care facility — whether temporarily or permanently — the PPR exemption can continue indefinitely. This is more generous than NSW (6 years for temporary absence) and Victoria (6 years).

Renovation or rebuild: If you are renovating or rebuilding your home, the PPR exemption may continue for up to 2 financial years during the building works. If the home is destroyed or rendered uninhabitable through no fault of the owner (such as a fire or natural disaster), this extends to up to 3 financial years. After completion, you must live in the home for at least 12 months (RevenueSA — Exemptions, waiver or relief).

Trusts and companies: Companies cannot claim the PPR exemption, even if a director or shareholder occupies the property. Trust-owned land is subject to separate trust land tax rates with a significantly lower threshold of $25,000 (compared to $833,000 for general rates in 2025-26), plus higher marginal rates (RevenueSA — Land held on trust). Trusts can apply to be assessed at general rates if all beneficiaries or unitholders are nominated.

Other exemptions: Primary production land (must be 0.8 hectares or greater and wholly or mainly used for primary production), retirement villages, supported residential facilities, aged care facilities, and land owned by charitable, educational, benevolent, religious, or philanthropic associations may also be exempt (RevenueSA — Exemptions, waiver or relief).

Foreign owner surcharge: SA does not impose a foreign owner surcharge on land tax.

How to apply: Contact RevenueSA to apply for or update your exemption status. You must notify RevenueSA within one month of any changes to trust ownership or land use.

ACT land tax exemptions

The ACT provides a PPR exemption for natural persons who reside in the property as their principal place of residence on the first day of each quarter (1 July, 1 October, 1 January, 1 April) (ACT Revenue Office — Land tax exemptions). Because the ACT assesses land tax quarterly, the exemption is assessed four times per year rather than once as in other jurisdictions.

Moving into a new home: When purchasing a property to occupy as your principal residence, you do not pay land tax provided you move in within 3 months of becoming the owner and do not rent the property during that period.

Moving out: If you move out of your principal place of residence, the exemption continues for the first full quarter after you move out. During that quarter the property may be left vacant or sold, but if you rent it, land tax becomes payable immediately. This is significantly shorter than the 6-year temporary absence provisions in NSW and Victoria.

Deceased estates: The former principal place of residence of a deceased owner is exempt for up to 2 years after the date of death, or until the property is transferred to a beneficiary or rented — whichever occurs first. An extension may be granted if a person continues to occupy the property as their principal residence and is likely to inherit the property.

Loss of independence: If you can no longer live independently and move in with a carer, your former home is exempt for up to 2 years from the date you move out, provided it remains unoccupied (ACT Revenue Office — Land tax exemptions).

Unfit for occupation: A home that is unfit for occupation — because it is under construction, being significantly renovated, or has been damaged — is exempt from land tax for the period during which it cannot be lived in or rented.

Affordable community housing: The ACT offers a unique exemption for properties rented through a registered community housing provider at less than 75% of market rent, subject to tenant income limits. This exemption is limited to 1,000 properties territory-wide.

Trusts and companies: Properties owned by corporations and trusts cannot claim the PPR exemption (ACT Revenue Office — Land tax exemptions). This applies to the moving-in, moving-out, deceased estate, and loss of independence exemptions as well.

Other exemptions: Rural land used for primary production, Housing Commissioner properties, retirement villages, nursing homes, religious accommodation, and land used by not-for-profit housing corporations may qualify for exemption.

Foreign ownership surcharge: The ACT charges a 0.75% surcharge on the average unimproved value (AUV) of residential land owned by foreign persons (ACT Revenue Office — Foreign ownership surcharge). Foreign persons include individuals who are not Australian citizens or permanent residents, foreign corporations (where foreign persons hold 50% or more of shares or voting power), and foreign trustees. The surcharge does not apply if the foreign owner lives in the property as their principal place of residence.

Self-assessment: Most ACT exemptions are self-assessed. You must determine your own eligibility and notify the ACT Revenue Office only if you are liable to pay land tax. Supporting documentation must be retained for 5 years.

How to apply: Complete the Land Tax Notification form and submit it to the ACT Revenue Office. Changes must be reported within 30 days.

TAS land tax exemptions

Tasmania uses a land classification system rather than traditional exemptions. Land is classified as either principal residence land (zero land tax rate), primary production land (zero rate), or general land (taxable) (State Revenue Office Tasmania — Exemptions and rebates). This classification is assessed as at 1 July each year.

Principal residence land: To qualify for the principal residence classification, the owner must have at least a 50% interest in the land, the property must contain a dwelling, and the owner must reside in it as their principal place of residence (State Revenue Office Tasmania — Principal residence land). The property must be the place where the owner ordinarily eats and sleeps. This 50% ownership requirement is stricter than most other states.

Home business concession: You can operate a home business from the property and retain the principal residence classification, provided the land is the sole permanent business premises, no more than 50% of the floor area of the dwelling is ordinarily used for business purposes, and the business is operated by the owner or a close relative (spouse, sibling, child, or parent) (State Revenue Office Tasmania — Principal residence land).

Special disability trusts: A zero land tax rate may apply to land held in a special disability trust if the beneficiary of the trust resides in the property as their principal place of residence (State Revenue Office Tasmania — Exemptions and rebates).

New home rental exemption: Properties with a first occupancy permit issued between 8 February 2018 and 30 June 2026 may qualify for a land tax exemption for up to 3 financial years when used as long-term rental accommodation (State Revenue Office Tasmania — Exemptions and rebates).

Short-term accommodation conversion: A 1-year land tax exemption is available for properties where short-term visitor accommodation (such as Airbnb) is converted to long-term residential rental. This exemption has been extended to 30 June 2026.

Two residences transitional rebate: If you purchase a new principal place of residence before selling your existing one, a rebate may be available so that both properties can be classified as principal residence land during the transition period.

New home builders rebate: Builders constructing a new principal residence may claim a rebate on the current year’s land tax where they qualify for the principal residence classification on their newly built home.

Primary production land: Land actively used for farming or agricultural business qualifies for a zero land tax rate.

Other exemptions: Non-profit organisations, clubs using land for club purposes, and land held by public statutory authorities may also qualify for exemptions or special rates.

Foreign investor land tax surcharge: From 1 July 2022, Tasmania charges a 2% foreign investor land tax surcharge (FILTS) on residential general land acquired by foreign persons (State Revenue Office Tasmania — Foreign investor land tax surcharge). This includes land owned by companies or trusts that become foreign-owned on or after that date. Land acquired before 1 July 2022 is not subject to FILTS unless a further interest in the land is acquired after that date. The surcharge does not apply to principal residence land.

How to apply: Apply for principal residence land classification via Tasmanian Revenue Online.

Cross-state exemption comparison

The following table summarises key exemption features across all states and territories that levy land tax.

Feature	NSW	VIC	QLD	WA	SA	ACT	TAS
PPR exemption available	Yes	Yes	Yes	Yes	Yes	Yes	Yes (zero rate)
Application method	Land Tax Online	NOA form	Form LT12	Form FLT21	RevenueSA	Land Tax Notification form	Tasmanian Revenue Online
Taxing date	31 December	31 December	30 June	30 June	30 June	Quarterly (1st of quarter)	1 July
Temporary absence allowed	Up to 6 years	Up to 6 years	None apparent	Not detailed	Indefinite (care facility)	First full quarter only	Not detailed
Trust PPR eligible	Limited	Limited	If all beneficiaries reside	Limited	No (trust rates from $25K)	No	Special disability trusts only
One-room rental OK	Yes (full exemption)	Pre-2026: No	Up to 50% floor area	Not detailed	Partial (25-75% business)	Not detailed	Home business up to 50%
Foreign surcharge	5%	4%	3%	None	None	0.75%	2% (from 2022)
Deceased estate grace period	2 years	3 years	Next 30 June	1 year	Ex gratia for 1 FY	2 years	1 financial year
Minimum ownership for PPR	25% (from 2026)	None	None	None	50% (Commissioner discretion below)	None	50%

Deceased estate grace periods

When a property owner dies, the principal residence exemption does not automatically end. Each state provides a grace period during which the deceased’s home can remain exempt from land tax, giving executors and beneficiaries time to administer the estate. The rules vary significantly across states.

NSW — up to 2 years

The PPR exemption continues for up to 2 years after the date of death, or until the property is transferred to someone other than a personal representative or beneficiary of the estate — whichever happens first (Revenue NSW — PPR exemption (deceased estates and 25% rule)). If a person continues to live in the property during this period, the exemption can also apply where that person has the right to occupy under the deceased’s will, or lived with the owner before death and has been given permission to remain by the estate representative (but cannot be a tenant).

VIC — up to 3 years

Victoria provides the longest grace period. The PPR exemption continues for up to 3 years from the date of death of the individual owner or vested beneficiary (State Revenue Office VIC — Deceased estates and land tax). In strictly limited circumstances, the Commissioner may approve a written request for a longer period. During this concessionary period, the estate is assessed at general land tax rates rather than the higher trust surcharge rates that would otherwise apply. Personal representatives must lodge a notice with the SRO within one month of commencing estate administration and again within one month of completing it. Failure to notify may result in penalty tax. From 1 January 2026, if income is derived from the property after death (e.g. from a business activity or separate residence on the land), a partial PPR exemption may apply rather than a full exemption.

QLD — next 30 June after death

Queensland offers a more limited grace period. If the deceased owner qualified for the home exemption as at the last 30 June before death, the exemption continues to the next 30 June following the date of death — provided the property is not being used for a different purpose since death (Queensland Revenue Office — Deceased estates and land tax) (Queensland Revenue Office — Public Ruling LTA023.1.2: Deceased estates). On the second 30 June following the date of death, the exemption ceases and the property is assessed as taxable land. The deceased is taken to be the owner during estate administration until administration is complete.

WA — 1 year (with possible extension)

Under section 23 of the Land Tax Assessment Act 2002, the deceased’s primary residence remains exempt for one assessment year following the financial year in which the owner died (WA Department of Treasury and Finance — Deceased estates (CP LT 22)). The Commissioner has discretion to extend this exemption into a second year. If a beneficiary with express entitlement under the will uses the property as their primary residence while it is held in trust, the property can also be exempt under section 22 of the Act. The executor must notify the Commissioner within 3 months after 30 June if the beneficiary is not using the property as their primary residence.

SA — ex gratia relief for 1 financial year

South Australia does not provide a statutory grace period in the same way as other states. The PPR exemption applies for the financial year in which the owner died if the deceased was residing in the property as at midnight on 30 June of that year. For the first full financial year following death, ex gratia relief (a discretionary payment covering the land tax payable) may be available from the State Government, provided the home was the owner’s principal place of residence immediately before death and the property has not been rented out since death (RevenueSA — Exemption where the home owner has died) (RevenueSA — Deceased estates). During estate administration, the property is taxed as an administration trust at general rates for up to 3 financial years following the date of death, or until administration is completed — whichever is earlier.

ACT — up to 2 years

The former principal place of residence of a deceased owner is exempt from land tax for up to 2 years after the date of death (ACT Revenue Office — Land tax exemptions (deceased estates)). The exemption ends earlier if the property is transferred to a beneficiary or becomes rented. Before the 2-year period expires, the personal representative may apply in writing to the Commissioner for an extension, provided the property has not been rented and remains in the deceased’s or personal representative’s name. A person holding a life or term interest under the will who occupies the property as their principal place of residence may also qualify for an ongoing exemption for the duration of that interest.

TAS — 1 financial year

Tasmania allows the principal residence land classification to continue for 1 financial year following the death of a sole owner (State Revenue Office Tasmania — Land tax on principal residence land following the death of the owner). Specifically, the classification applies on 1 July of the financial year after the owner’s death, provided the property was classified as principal residence land on 1 July of the year of death and has not been sold or transferred to anyone other than the personal representative. There is no provision for extending this period.

NT — not applicable

The Northern Territory does not levy land tax, so no grace period is needed.

Comparison table: deceased estate grace periods

State	Grace Period	Extension Available	Key Condition	Source
NSW	Up to 2 years from death	Not specified	Property not transferred or rented	(Revenue NSW — PPR exemption (deceased estates and 25% rule))
VIC	Up to 3 years from death	Yes (Commissioner discretion, limited)	Must notify SRO within 1 month	(State Revenue Office VIC — Deceased estates and land tax)
QLD	Next 30 June after death only	No	Property use must not change	(Queensland Revenue Office — Public Ruling LTA023.1.2: Deceased estates)
WA	1 assessment year	Yes (Commissioner discretion, up to 2nd year)	Executor must notify within 3 months	(WA Department of Treasury and Finance — Deceased estates (CP LT 22))
SA	Year of death + ex gratia for 1st full FY	No (ex gratia is discretionary)	Property must not be rented out	(RevenueSA — Exemption where the home owner has died)
ACT	Up to 2 years from death	Yes (by written application)	Property not transferred or rented	(ACT Revenue Office — Land tax exemptions (deceased estates))
TAS	1 financial year after death	No	Not sold or transferred	(State Revenue Office Tasmania — Land tax on principal residence land following the death of the owner)
NT	N/A	N/A	No land tax	—

Key takeaways for estate planning: Victoria’s 3-year grace period provides the most time for executors to administer an estate without incurring land tax on the deceased’s home. Queensland’s much shorter grace period (to the next 30 June only) means that if an owner dies in July, the exemption could continue for almost 12 months, but if they die in May, it extends for only about 1 month. In all states, renting the property out or transferring it to a new owner terminates the grace period immediately.

Common exemption traps

These are the pitfalls that catch property owners most often:

1. Trust-owned properties generally cannot get the PPR exemption. If you hold your home in a family trust, you may not qualify for the exemption in any state. This can result in thousands of dollars in unexpected land tax.

2. Only one PPR per person or family. You cannot claim a PPR exemption on two properties simultaneously, even if they are in different states. Couples who own properties separately should verify which property is claimed.

3. Vacant land does not qualify. The PPR exemption requires a residential building that you actually live in. Buying a block of land with plans to build does not qualify until the home is constructed and occupied (though WA may provide a building exemption during construction).

4. Moving out and renting triggers loss of exemption. If you move out and rent the property to a tenant, you generally lose the PPR exemption immediately — subject to temporary absence rules in NSW and Victoria (up to 6 years). The ACT provides only the first full quarter after moving out. Queensland offers no apparent temporary absence provision. SA allows indefinite continuation if the owner moves into a residential care facility.

5. Foreign residents face surcharges in most states. NSW charges 5%, Victoria charges 4%, Queensland charges 3%, Tasmania charges 2% (from 1 July 2022), and the ACT charges 0.75%. These surcharges apply on top of standard land tax rates and can significantly increase the annual bill.

6. Victoria pre-2026: any rental income terminates the exemption. Before the 2026 changes, even renting a single room in your Victorian home meant losing the entire PPR exemption. From 2026, a partial exemption may apply.

7. Queensland absentees lose all exemptions. Unlike other states, Queensland absentees cannot claim the home exemption at all. New Zealand citizens are also classified as absentees.

8. Notification requirements differ by state. Victoria requires notification within 60 days of any change in use. The ACT requires changes to be reported within 30 days. SA requires notification within one month of changes to trust ownership. Missing a deadline can cost you the exemption for the entire year. Check your state’s requirements and set calendar reminders.

9. SA trust threshold is dramatically lower. Trust-owned land in South Australia faces a threshold of just $25,000, compared to $833,000 for individual owners. Moving an SA property into a trust can trigger a land tax bill where none existed before.

10. Tasmania requires 50% ownership for the PPR classification. Unlike most other states, Tasmania requires the owner to hold at least a 50% interest in the land to qualify for the principal residence classification. Joint owners with less than 50% each may not qualify.

11. ACT exemption assessment is quarterly, not annual. The ACT assesses land tax every quarter. If your circumstances change mid-year (such as renting out your home), you may owe land tax for the remaining quarters of the year, whereas in most other states you would owe for the entire year or nothing.

Estimate your land tax

The land tax calculator compares land tax across all Australian states and territories. Enter a total taxable land value to see the estimated land tax for every jurisdiction side by side.

For state-specific rates, worked examples, and exemption details, see the dedicated calculators:

• Land Tax Calculator NSW — $1,075,000 threshold, general and premium rates
• Land Tax Calculator Victoria — $50,000 threshold, includes COVID Debt Repayment Plan changes (2024-2033)
• Land Tax Calculator QLD — $600,000 threshold for individuals
• Land Tax Calculator WA — $300,000 threshold, unique flat-fee bracket
• Land Tax Calculator SA — $833,000 threshold (2025-26)
• Land Tax Calculator ACT — No threshold, fixed charge plus valuation charge
• Land Tax Calculator Tasmania — $125,000 threshold, two-bracket system
• Land Tax Calculator NT — No land tax

Disclaimer

This guide is general information only and is not tax advice or financial advice. Land tax rules, thresholds, and rates change over time. In particular, South Australia adjusts thresholds annually, and other states may change rates through legislation. Always verify current rates with your state revenue office before making financial decisions. Consider speaking with a registered tax agent or accountant for advice specific to your situation. We are not affiliated with the ATO or any state revenue office.