What Is Land Tax and Who Has to Pay It in Victoria?
Land tax is an annual state tax on the total taxable value of all Victorian land you own above a tax-free threshold, administered by the State Revenue Office Victoria (SRO). It is assessed each year based on land ownership as at midnight on 31 December, using the site value set by the General Valuation. It is separate from — and in addition to — local council rates and stamp duty, and applies to individuals, companies, trusts and absentee (foreign) owners who hold non-exempt land, most commonly investment properties, commercial property, and vacant or holiday land. Your principal place of residence is generally exempt.
How Is Land Tax Calculated in Victoria?
Land tax is calculated on the total taxable value of all your non-exempt Victorian landholdings combined, not on each property separately. The general tax-free threshold is $50,000 for individuals and companies, and $25,000 for land held in a trust. Above the threshold, land tax is charged on a sliding rate scale, plus a temporary COVID-19 debt levy legislated for the 2024–2033 land tax years.
What Is Exempt From Land Tax?
- Principal place of residence (PPR) — the home you live in is generally exempt.
- Primary production land — see below; the most relevant exemption for rural and farming landholders.
- A range of less common exemptions, including charitable/not-for-profit land and certain rooming house land.
Primary Production Land Exemption — Eligibility in Detail
Land used primarily/solely for a business of primary production can be exempt. Eligibility criteria tighten by location: least restrictive wholly outside greater Melbourne, intermediate within greater Melbourne but outside urban zones, most restrictive within greater Melbourne urban zones (Revenue Ruling LTA-011).
This exemption is not automatic in every case — depending on ownership structure and location, you may need to apply to the SRO and provide evidence of genuine primary production use.
Primary Production Land Tax Exemption Checker (Victoria)
Answer honestly for a quick indication of whether your land is likely to qualify — this is not a substitute for lodging an actual exemption claim with the SRO.
Source: SRO Victoria — primary production land exemption (see sources below).
Land Tax for Trusts, Companies and Absentee Owners
Land held in a trust is generally taxed at a lower threshold ($25,000) than land held by an individual or company. An absentee owner surcharge also applies on top of standard land tax for foreign individuals, companies and trusts that meet the SRO's absentee owner definition. Both are common considerations for rural property held through a family trust or company structure.
How and When Land Tax Is Assessed and Paid
The SRO issues an annual land tax assessment notice, usually early in the calendar year, based on land owned as at the preceding 31 December. Payment can generally be made in full or by approved instalments, and owners can manage their assessment through the SRO's My Land Tax online portal.
Frequently Asked Questions
Does my home get taxed under land tax?
Your principal place of residence is generally exempt, subject to meeting the standard PPR eligibility rules.
Is farmland automatically exempt from land tax?
No — it must genuinely be used for a business of primary production, and the SRO actively audits these claims. Zoning alone is not sufficient.
Does land tax apply per property or across my whole portfolio?
Across your whole non-exempt Victorian landholding combined, not property by property.
Where can I get an exact land tax figure for my property?
This page provides general information only — use the official SRO land tax calculator, or speak with a registered tax agent, for a precise figure based on your specific site value and ownership structure.
Updated on 2026-07-12 — what changed
Initial publication of this page, drafted and figures re-verified directly against sro.vic.gov.au as of 12 July 2026.