Current land tax rates
in Victoria: 2026.
Victoria's land tax settings for 2026 continue the arrangements introduced under the State Government's temporary COVID debt levy. The general threshold remains at $50,000, the absentee owner surcharge remains at 4%, and the trust surcharge continues from $25,000. These settings are legislated to remain in place until 30 June 2033, and the 2026–27 State Budget confirmed no changes to rates, thresholds or surcharges.
By Kenan Akyildiz | Updated August 2026
What is land tax, and who pays it?
Land tax is an annual state tax on the total value of the taxable land you own in Victoria, other than exempt land such as your home. It is assessed each year by the State Revenue Office based on the site value of your land as at 31 December.
Land tax commonly applies to:
- Investment properties
- Commercial properties
- Vacant land
- Holiday homes and some other second properties
Unlike stamp duty, which is a one-off charge paid at settlement, land tax recurs every year you hold taxable land above the threshold. It is assessed on your total Victorian landholdings aggregated across all properties you own — not on each individual property.
General land tax rates 2026
The general land tax rates apply to individual owners, companies and joint owners of taxable land, excluding land held through a trust and excluding absentee owners.
| Total taxable value | Land tax payable |
|---|---|
| Less than $50,000 | Nil |
| $50,000 to less than $100,000 | $500 |
| $100,000 to less than $300,000 | $975 |
| $300,000 to less than $600,000 | $1,350 + 0.3% over $300k |
| $600,000 to less than $1M | $2,250 + 0.6% over $600k |
| $1M to less than $1.8M | $4,650 + 0.9% over $1M |
| $1.8M to less than $3M | $11,850 + 1.65% over $1.8M |
| $3,000,000 and over | $31,650 + 2.65% over $3M |
Source: State Revenue Office Victoria. sro.vic.gov.au/land-tax-current-rates
Trust surcharge land tax rates 2026
The trust surcharge rates apply to land held through most trust structures, including family and discretionary trusts. These rates generally impose a higher liability than the general rates at the same land value, and begin at a lower threshold of $25,000.
| Total taxable value | Land tax payable |
|---|---|
| Less than $25,000 | Nil |
| $25,000 to less than $50,000 | $82 + 0.375% over $25k |
| $50,000 to less than $100,000 | $676 + 0.375% over $50k |
| $100,000 to less than $250,000 | $1,338 + 0.375% over $100k |
| $250,000 to less than $600,000 | $1,901 + 0.675% over $250k |
| $600,000 to less than $1M | $4,263 + 0.975% over $600k |
| $1M to less than $1.8M | $8,163 + 1.275% over $1M |
| $1.8M to less than $3M | $18,363 + 1.1072% over $1.8M |
| $3,000,000 and over | $31,650 + 2.65% over $3M |
Source: State Revenue Office Victoria. sro.vic.gov.au/land-tax-current-rates
4% absentee owner surcharge
In addition to the general or trust rates, an absentee owner surcharge of 4% applies to taxable land owned by absentee owners. This surcharge was doubled from 2% to 4% from the 2024 land tax year and remains at 4% for 2026.
An absentee owner can be an overseas resident, a foreign company, or a trust with absentee beneficiaries. The surcharge is designed to ensure that non-residents contribute to state revenue.
If your circumstances might bring you within the absentee owner definition, it is worth seeking advice — the rules are detailed and the financial cost is significant.
How to calculate land tax
Land tax is calculated on the total taxable value of all land you own, assessed as at midnight on 31 December. You find the bracket your total holding falls into, then apply the fixed amount plus the marginal rate for that bracket.
Vacant Residential Land Tax (VRLT)
The Vacant Residential Land Tax is separate from general land tax and targets homes that sit empty. Originally introduced in 2018 and limited to inner Melbourne, two significant changes have substantially broadened it.
The VRLT now applies across all of Victoria, not just inner Melbourne. A property is generally liable if it is capable of being used as a residence and was vacant for more than six months in the preceding calendar year.
CIV = Capital Improved Value
The VRLT now also captures long-term undeveloped residential land in metropolitan Melbourne — broadly land capable of residential development that has remained undeveloped for at least five years. This targets land banking.
Owners must notify the State Revenue Office through the online portal by 15 January each year if their property was vacant during the previous calendar year. Failing to notify can lead to penalties. If you own a property that has been empty, this is an obligation to be aware of.
In short: if you own a home that sits empty, or undeveloped residential land in metropolitan Melbourne, you may now face the VRLT even if you did not in previous years. The rules turn on how the property was used in the previous calendar year — it is worth reviewing your position before 15 January.
How to lawfully reduce your land tax
Land tax is a compulsory state tax and cannot simply be avoided, but there are lawful ways to manage your exposure. Always obtain advice specific to your circumstances before acting.
Common exemptions from land tax
Certain land and landowners are exempt from Victorian land tax. Exemption criteria can be complex — it is worth confirming your position with an adviser.
When is land tax due and how do you pay?
Land tax is assessed annually. Assessment notices are issued through the year and payment is due by the date shown on your notice. Late payments attract interest.
If you are experiencing financial hardship, you can apply for hardship relief through the SRO.
Land tax versus stamp duty
Both are Victorian property taxes administered by the SRO — but they work very differently.
Frequently asked questions
Questions about your land tax obligations?
For guidance on how Victoria's land tax rules apply to your circumstances, contact Orange Legal Group. Our team can help you understand your obligations and plan property purchases with land tax in mind.
Please note this information is a general overview current as at 2026 and is not a substitute for tailored legal or tax advice. Always confirm current rates on the SRO website and seek advice for your circumstances.