Land Tax

Plain-English definition. Land tax is an annual state government tax on the unimproved value of land you own, calculated on the aggregated value of all your taxable holdings in that state. The main residence is exempt in most states.

How it works in Australia. Each jurisdiction uses its own valuation basis, aggregation rules, ownership categories, exemptions and annual rates. Companies and trusts may not receive the same threshold or scale as an individual. Foreign-owner or absentee surcharges can apply separately. Start with the land tax by state guide, then use the relevant state calculator and check the linked revenue authority before relying on the amount.

Concrete example. If one owner has several taxable properties in the same state, the authority may aggregate their land values before applying the threshold. The result cannot safely be estimated by calculating each property in isolation.

Common confusion. People think their main residence is always exempt — true federally for CGT, but in Victoria and the ACT, vacant land or holiday homes used by the owner can still be taxed. Aggregation across all your state holdings is also missed: owning three units each below the threshold doesn't help if their combined land value exceeds it.