Understanding Land Tax Rates Across Australia
Land tax is a major ongoing cost for property owners, and understanding how it varies across states is essential for investors planning where and how to hold real estate assets. Each state and territory in Australia has its own thresholds, rates, and exemptions — making for significant differences in the total tax paid.
The following visualisations offer two perspectives: how land tax increases with land value (line graph), and how much is paid at fixed land values (bar chart). Figures below are for an individual Australian resident owner at 2026 rates — see our state-by-state land tax guide for trust, company and foreign owner rates.
Annual Land Tax by State — From $0 to $2 Million in Land Value
Observations:
ACT is the most expensive jurisdiction at almost every land value, since it has no tax-free threshold and applies a flat annual charge ($1,778 for 2026) on top of its marginal rates.
Tasmania starts cheaper than ACT at low values but climbs steeply, closing to within a few hundred dollars of ACT by $2 million due to its comparatively high top marginal rate.
Queensland and Victoria form the middle tier, with Queensland overtaking Victoria above roughly $900,000 in land value as QLD's marginal rates step up faster.
NSW and South Australia stay near zero for longer than any other state, thanks to high tax-free thresholds ($1,075,000 and $936,000 respectively) — but NSW rises sharply once past its threshold.
WA remains one of the lowest-taxed states across the full range, helped by a $300,000 threshold and gentle marginal rates.
Land Tax at Fixed Property Values
$250k Land Value: ACT already charges $3,228 due to its flat charge. TAS ($612) and VIC ($975) impose moderate tax. WA, QLD and SA are still at zero.
$500k Land Value: ACT reaches $6,178. VIC ($1,950) and TAS ($1,738) increase further. QLD and SA remain at zero, WA is just $500.
$1m Land Value: ACT leads at $12,378, TAS follows at $9,238. VIC ($4,650) and QLD ($4,500) are close together. NSW is still negligible at $100.
$2m Land Value: ACT ($24,878) and TAS ($24,238) top out well above the rest. QLD sits at $21,000, VIC and NSW are close together around $15,000, and SA is the cheapest at $7,800.
Strategic Implications for Investors
These comparisons show that ACT and Tasmania are consistently the most expensive places to hold land, regardless of value — ACT because it has no threshold at all, and Tasmania because of its steep marginal rates once past its low $125,000 threshold.
Victoria also carries a high burden on lower-value holdings below $500k because of its low $50,000 threshold, though it tracks closer to NSW and QLD on higher-value properties.
Queensland and NSW sit in the mid-range and trend upward as property values rise, with NSW's high threshold making it especially attractive for lower-value holdings.
WA and SA remain the most tax-friendly jurisdictions for holdings under $1 million, making them well suited to small-to-mid-sized investors.
Final Word
Whether you're an individual investor or managing a portfolio, factoring in land tax can dramatically affect your net return. At the $2 million mark, the gap between the cheapest state (SA) and the most expensive (ACT) is over $17,000 per year. For a full breakdown of thresholds and exemptions in each state, check out our state-by-state land tax guide, or use our Land Tax Calculator to estimate your own liability.