In short: This calculator estimates your annual Victorian land tax from the total site value of all taxable land you own on 31 December. Your own home is exempt, so the tax mostly hits investors and holiday-home owners. The threshold is $50,000 of land value, and at $600,000 the bill is $2,250 plus 0.6% of every dollar above that.
- General land tax$1,800
- Tax-free threshold$50,000 (2024–2033)
- Assessed onSite value at 31 December
Your principal place of residence is exempt. Trust surcharge rates and COVID debt levy interactions are not modelled — check the SRO.
Estimated annual land tax: $1,800
That is a general estimate on standard assumptions. Every lender applies its own expense benchmarks, income shading and policy, so the real figure moves from lender to lender. Gorakh spent years as a senior credit officer deciding exactly these questions. Send him the numbers above and he will tell you what is realistic and which lenders fit — at no cost to you for home loans.
- A former senior credit officer reads itGorakh assessed loan applications on the lender side before he became a broker.
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- Fees and complaints in writingRead the Credit Guide and our complaints and AFCA process before you commit to anything.
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How this calculator works
Victoria taxes the site value of land (the land alone, not the house) shown on your council rates notice. The calculator totals the site values of every taxable property you own, applies the 2024 to 2033 general rates, and adds the absentee owner surcharge if applicable.
Victorian land tax rates (2024–2033)
| Total taxable site value | Land tax payable |
|---|---|
| Under $50,000 | Nil |
| $50,000 to under $100,000 | $500 |
| $100,000 to under $300,000 | $975 |
| $300,000 to under $600,000 | $1,350 plus 0.3% of value over $300,000 |
| $600,000 to under $1,000,000 | $2,250 plus 0.6% of value over $600,000 |
| $1,000,000 to under $1,800,000 | $4,650 plus 0.9% of value over $1,000,000 |
| $1,800,000 to under $3,000,000 | $11,850 plus 1.65% of value over $1,800,000 |
| $3,000,000 and over | $31,650 plus 2.65% of value over $3,000,000 |
Your principal place of residence is left out entirely, and land is aggregated: the rate is set by your combined holdings, not each property separately. Absentee owners (broadly, foreign owners not ordinarily in Australia) pay a further 4% surcharge on taxable value. Full rules are at sro.vic.gov.au.
How to use the result
Divide the annual figure by 52 and add it to your weekly holding cost alongside interest, rates and insurance. Our investment property cashflow calculator does this and shows the after-tax position, since land tax on a rented property is generally deductible. Model it before buying a second property too, because aggregation makes each extra block dearer.
Worked example
A Bundoora couple owns their home (exempt) plus an Epping house with a site value of $320,000 and a Wollert townhouse with a site value of $350,000.
| Item | Value |
|---|---|
| Epping investment (site value) | $320,000 |
| Wollert investment (site value) | $350,000 |
| Total taxable site value | $670,000 |
| Bracket applied | $2,250 plus 0.6% over $600,000 |
| Land tax payable | $2,670 per year |
| If the owners were absentee (add 4% of $670,000) | $29,470 per year |
Assessed separately the properties would attract $2,910, so at this level aggregation slightly favours them. At higher values the reverse happens: a $1,200,000 holding costs $6,450, but adding another $800,000 of land lifts the bill to $15,150.
What this calculator doesn't include
- Trust surcharge rates, which apply higher rates to land held in most trusts.
- Vacant residential land tax, a separate annual tax on homes left empty for more than six months, covered in our vacant residential land tax guide.
- Exemptions for primary production land, charities and retirement villages.
- Joint ownership assessments, where the joint holding is assessed first and then each owner's share.
Tips to improve the outcome
- Use the site value on your rates notice, not the purchase price. Land in a new Donnybrook or Kalkallo estate often has a site value well under the purchase price.
- Consider ownership structure before buying. Splitting properties between spouses can keep each under a lower bracket; get advice first and read our page on joint tenants versus tenants in common.
- Keep the property tenanted to avoid vacant residential land tax.
- Factor land tax into rent reviews and loan structure; an interest-only period can ease cashflow.
Frequently asked questions
How much is land tax on a $600,000 investment property in Victoria?
If the site value (land only) is $600,000 and it is your only taxable land, the 2026 land tax is $2,250. A property that sells for $600,000 usually has a much lower site value, often $250,000 to $400,000 in Melbourne's north, putting the bill at $975 to $1,650. Check the rates notice for the actual figure.
Do I pay land tax on my own home in Victoria?
No. Your principal place of residence is exempt from Victorian land tax, provided you actually live there and it is not used for substantial business purposes. If you move out and rent it, the home generally becomes taxable from the next 31 December.
What is the land tax threshold in Victoria?
For the 2024 to 2033 land tax years the general threshold is $50,000 of total taxable site value. From $50,000 to under $100,000 the tax is a flat $500, and from $100,000 to under $300,000 it is $975. Above that, each bracket is a base amount plus a percentage of the excess.
Is Victorian land tax deductible?
For a property that is rented or genuinely available for rent, land tax is generally a deductible holding cost against rental income, reducing the after-tax cost by your marginal rate. Land tax on a privately used holiday home is not deductible. Our negative gearing guide explains how holding costs flow through your return.
When is land tax assessed and paid in Victoria?
Liability is fixed on the land you own at midnight on 31 December, with assessments issued in the following months and payable in full or by instalments. There is no pro-rating for part-year ownership: settling an investment purchase in late December rather than early January brings forward a full year's liability, so check your settlement date.
Talk to GNT Finance
Land tax is one line in the holding-cost equation. Our investment property loans team can model the full picture for a purchase anywhere in Victoria, in English, Nepali or Hindi.
Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.