Understanding the 2026 Victoria Land Tax Changes
Land tax is an annual tax levied by the Victorian government on the value of land you own (excluding your primary residence if it's your principal place of residence). It applies to property investors and owners of vacant land. Use this calculator to estimate your VIC land tax liability based on the 2025-26 rates from the Victorian State Revenue Office (SRO).
FAQ
Q1: Who pays land tax in Victoria?
You pay land tax if you own land in Victoria with a total value above the threshold ($50,000 for general land in 2025-26). Your principal place of residence (PPOR) is exempt. If you own multiple properties, the values are aggregated. Trusts have a lower threshold ($25,000) and may face additional surcharges. Foreign owners may incur a 2% surcharge.
Q2: How are VIC land tax rates calculated?
Land tax is progressive. For 2025-26, rates on the taxable value (land value minus threshold) are: 0% up to $100,000; 0.2% for $100k-$300k; 0.4% for $300k-$600k; 0.6% for $600k-$1M; 0.9% for $1M-$1.5M; 1.2% for $1.5M-$1.9M; 1.6% for $1.9M-$2.4M; and 2.2% above $2.4M. The tax is calculated in brackets (marginal rates). The effective rate averages lower than the top bracket.
Q3: What is the foreign owner land tax surcharge?
Foreign persons (non-Australian citizens/permanent residents) pay an additional 2% surcharge on the total land value (not just taxable above threshold) in addition to the general land tax. This applies to residential and commercial land. This surcharge is separate from the absentee owner surcharge and aims to reduce foreign investment pressure on housing.
Q4: Are there any exemptions or reductions?
Yes. Principal place of residence (PPOR) is exempt if you occupy the property as your main home. Primary production land may be exempt. Charitable or religious use may qualify. Retirement villages have specific rules. Some trusts may qualify for concessions. Always check the SRO website for current exemptions and thresholds, as they are indexed annually.
Important: Land tax is separate from council rates and is payable annually. The thresholds and rates are adjusted each financial year. This calculator uses 2025-26 rates; verify with the Victorian SRO for the latest information.