Quick answer
For the 2026 land tax year, Victorian land holdings under $50,000 are exempt, $50,000–$99,999 pay $500 and $100,000–$299,999 pay $975; above that the rate rises in steps. $900,000 of taxable land costs $4,050. Your home is exempt, trusts pay higher rates, and absentee owners pay an extra 4%.
How Victorian land tax is worked out
Land tax is charged each calendar year on the total site value of all the taxable land you owned in Victoria at midnight on 31 December of the year before. Site value is the land only, set by the Valuer-General, not what the property would sell for. Your home is exempt, so for most people land tax falls on investment properties, holiday homes and vacant land. Values are added together, so two modest investment properties can land in a higher band than either would alone.
2026 land tax rates: general
| Total taxable value | Land tax |
|---|---|
| Under $50,000 | Nil |
| $50,000 – $99,999 | $500 flat |
| $100,000 – $299,999 | $975 flat |
| $300,000 – $599,999 | $1,350 + 0.3% of the value over $300,000 |
| $600,000 – $999,999 | $2,250 + 0.6% of the value over $600,000 |
| $1,000,000 – $1,799,999 | $4,650 + 0.9% of the value over $1,000,000 |
| $1,800,000 – $2,999,999 | $11,850 + 1.65% of the value over $1,800,000 |
| $3,000,000 and over | $31,650 + 2.65% of the value over $3,000,000 |
These rates include the COVID-19 debt measures, which apply from the 2024 to the 2033 land tax years. They lowered the tax-free threshold to $50,000, added the $500 and $975 flat charges, and lifted the rate above $300,000 by 0.1 percentage points. On $900,000 of investment land the 2026 tax is $4,050. On $1,500,000 it is $9,150.
Trust rates
Land held in most trusts is taxed on the trust scale, which starts at $25,000 and is higher through the middle bands. Some fixed trusts and special trusts can be assessed at general rates if the right notifications are made to SRO. On $900,000 the trust scale gives $7,188, compared with $4,050 at general rates.
| Total taxable value | Land tax (trust) |
|---|---|
| Under $25,000 | Nil |
| $25,000 – $49,999 | $82 + 0.375% of the value over $25,000 |
| $50,000 – $99,999 | $676 + 0.375% of the value over $50,000 |
| $100,000 – $249,999 | $1,338 + 0.375% of the value over $100,000 |
| $250,000 – $599,999 | $1,901 + 0.675% of the value over $250,000 |
| $600,000 – $999,999 | $4,263 + 0.975% of the value over $600,000 |
| $1,000,000 – $1,799,999 | $8,163 + 1.275% of the value over $1,000,000 |
| $1,800,000 – $2,999,999 | $18,363 + 1.1072% of the value over $1,800,000 |
| $3,000,000 and over | $31,650 + 2.65% of the value over $3,000,000 |
Absentee owner surcharge
An absentee owner pays a further 4% of the total taxable value on top of normal land tax. On $900,000 that is $36,000 a year. The surcharge does not apply to Australian citizens or permanent residents who live overseas. From 1 January 2026, New Zealand citizens are treated the same as other foreign citizens. If you are an absentee owner at 31 December you must tell SRO by 15 January.
Your home and vacant residential land tax
Your principal place of residence is exempt from land tax, but not if it is owned by a company or most trusts. A holiday home doesn't count as a residence, even if you use it often. Separately, vacant residential land tax applies across Victoria to homes left empty for more than 6 months of the previous calendar year. It is 1% of the capital improved value in the first year, 2% in the second and 3% from the third.
What the calculator leaves out
It applies one scale to one total. It doesn't handle part exemptions, jointly owned land (assessed once jointly and again on each owner's share, with deductions), primary production land or the details of trust assessments. SRO's assessment notice is the final figure. If land tax is part of a buy decision, run the numbers with the negative gearing calculator too, and see our investment property tax guide. TXAS reviews land tax assessments and ownership structures for clients holding property in trusts and companies through our tax planning service.
Common questions
What is the land tax threshold in Victoria?
$50,000 of total taxable site value for individuals and companies in 2026, and $25,000 for most trusts. Between $50,000 and $300,000 there are flat charges of $500 or $975.
How much land tax do I pay on a $900,000 property in Victoria?
$4,050 for 2026 if the $900,000 is the site value of investment land held by an individual. Held in a trust it is $7,188. The figure uses land value, not the sale price.
Do I pay land tax on my home in Victoria?
No, your principal place of residence is exempt, as long as it is owned by you as an individual or an eligible trustee. Holiday homes and investment properties are taxed.
Who pays the absentee owner surcharge?
Foreign individuals who don't ordinarily live in Australia, and some foreign companies and trusts. It is 4% of the taxable value on top of land tax. Australian citizens and permanent residents living overseas are not charged it, but from 1 January 2026 New Zealand citizens are.
When is Victorian land tax assessed?
On the land you own at midnight on 31 December. The 2026 assessment is based on holdings at 31 December 2025, so selling in January doesn't remove that year's bill.
Sources: SRO: land tax current rates · SRO: absentee owner surcharge · SRO: principal place of residence exemption · SRO: vacant residential land tax rates