Victorian
Land Tax
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Victoria's land tax is one of the most complex areas of state revenue law. This guide breaks down every ownership scenario — from a single investment property to multi-trust structures — into clear, actionable information.
What is Land Tax?
Land tax is an annual tax levied by the State Revenue Office (SRO) Victoria on the total taxable value of all Victorian land you own — excluding your principal place of residence and certain exempt properties.
It is assessed based on who owns the land at midnight on 31 December of the prior year. The owner at that date is responsible for the full year's land tax, even if the property is sold during the year.
Key Point: Site Value, Not Property Value
Land tax is calculated on the site value — the value of the land alone, without buildings or improvements. This is determined by the Valuer-General Victoria and is typically lower than the property's market value.
- Investment properties
- Holiday homes
- Vacant land
- Commercial land
- Industrial land
- Your home (PPR)
- Primary production land
- Charitable institutions
- Rooming houses
- Land under $50k threshold
Important Disclaimer
This guide provides general information only. Land tax rules are complex and individual circumstances vary. Always verify with the SRO Victoria or a qualified tax professional.
Ownership Scenarios
Land tax rules differ significantly depending on how you hold the property. Select a scenario that matches your situation.
Individual — Single Investment Property
An Australian resident individual owns one investment property in Victoria. Their principal place of residence (PPR) is elsewhere and is exempt.
Example
Investment property with $600,000 site value
$2,250 land tax
Individual — Multiple Investment Properties
An individual owns two or more investment properties. All Victorian taxable land is aggregated and assessed together at the combined total site value.
Example
Two properties: $700k + $500k site values combined
$6,450 land tax
Joint Ownership / Part Share
Two or more people own a property together (e.g. 50/50). Land tax is assessed in two stages: first on the joint ownership as a whole, then on each owner individually including their share.
Example
Two owners, 50/50 split. Each assessed on $400k share plus other land.
$3,450 land tax
Individual — PPR + Investment Property
The most common scenario: you live in your own home (PPR) and also own an investment property. Your home is exempt; only the investment property is assessed.
Example
Investment property site value $450,000 (PPR exempt)
$1,800 land tax
Discretionary Trust (Family Trust) — Post-2006 Land
Most family trusts are discretionary trusts. Land acquired after 31 December 2005 is taxed at the trust surcharge rate — a higher rate than general land tax.
Example
Trust-held investment property, post-2006 acquisition
$7,188 land tax
Discretionary Trust — Pre-2006 Land with Nominated Beneficiary
Land acquired before 1 January 2006 by a discretionary trust can have a nominated beneficiary. This changes the assessment: the trustee pays general rates, and the beneficiary is assessed on their interest (with a deduction to avoid double taxation).
Example
Pre-2006 trust land with nominated beneficiary
$2,850 land tax
Fixed Trust / Bare Trust
In a fixed trust, beneficiaries have vested (fixed) interests in the land. They are assessed as if they are the owners of their share — similar to direct ownership.
Example
Fixed trust with two equal beneficiaries, each assessed on $300k
$2,250 land tax
Company-Owned Land
Companies pay general land tax rates. No PPR exemption is available to companies. Related companies may be grouped and assessed on their combined landholdings.
Example
Company-owned commercial/investment property
$9,150 land tax
Absentee Owner — Individual
An absentee owner is a person who is not an Australian citizen or permanent resident living overseas (or a New Zealand citizen without a special category visa). A 4% surcharge applies on top of general land tax rates.
Example
Foreign investor owning Victorian investment property
$35,450 land tax
Joint Ownership — Mixed Absentee and Resident
When a property is jointly owned by both absentee and resident owners, the absentee surcharge only applies to the absentee owner's individual assessment — NOT to the joint ownership assessment.
Example
50/50 joint ownership: one resident, one absentee
$4,650 land tax
Vacant Residential Land Tax (VRLT)
A separate annual tax on residential land left vacant for more than 6 months in the previous year. Applies to ALL Victorian residential land from 2025 (previously only 16 Melbourne councils). Rates escalate with years of vacancy.
Example
Residential property vacant for 1 year, capital improved value $800,000
$3,450 land tax
Primary Production Land (Farming)
Land used for genuine primary production (farming, agriculture, horticulture, viticulture, etc.) may be exempt from land tax. Different rules apply in Greater Melbourne and urban zones compared to rural areas.
Example
Rural farming property
$1,950 land tax
Current Land Tax Rates
Rates effective from the 2024 land tax year. Victoria uses a progressive marginal rate system — higher total taxable values attract higher rates.
| Total Taxable Value | Land Tax Payable |
|---|---|
| $0 – $49,999 | Below threshold |
| $50,000 – $99,999 | $500 flat |
| $100,000 – $299,999 | $975 flat |
| $300,000 – $599,999 | $1,350 + 0.3% over $300k |
| $600,000 – $999,999 | $2,250 + 0.6% over $600k |
| $1,000,000 – $1,799,999 | $4,650 + 0.9% over $1M |
| $1,800,000 – $2,999,999 | $11,850 + 1.65% over $1.8M |
| $3,000,000 and over | $31,650 + 2.65% over $3M |
Individual Threshold
No land tax is payable if your total taxable Victorian land value is below $50,000. Between $50,000 and $99,999, a flat $500 applies.
Aggregation Rule
All Victorian taxable land you own is aggregated. Owning multiple properties pushes you into higher marginal rate brackets.
Rate History
These rates apply from the 2024 land tax year and are legislated to remain in place through to 2033. The absentee surcharge was 2% before 2020, 3% from 2020–2023, and 4% from 2024.
Land Tax Calculator
Estimate your Victorian land tax based on site value and ownership type.
This is an estimate only. For part ownership, enter the full property site value and your share percentage.
Site value of all Victorian taxable land you own
100% if sole owner, 50% for equal joint ownership, etc.
Assessed Value
$600,000
Land Tax Payable
$2,250
Effective Rate
0.375%
This calculator provides an estimate only. Joint ownership deductions, exemptions, and other adjustments are not included. Use the SRO official calculator for a precise assessment.
Joint Ownership & Part Shares
When a property is owned by two or more people, land tax is assessed in two stages. This two-stage process is one of the most misunderstood aspects of Victorian land tax.
Stage 1: Joint Ownership Assessment
The SRO assesses the joint ownership as a single entity on ALL land jointly owned by that unique combination of owners. One assessment is issued, and all joint owners are jointly liable for the full amount.
Example
Anna and Ben own an investment property 50/50 with a site value of $800,000. The joint ownership assessment is calculated on $800,000 total.
Exemptions & Concessions
Certain land is exempt from land tax. Understanding which exemptions apply to your situation can significantly reduce your liability.
Vacant Residential Land Tax
VRLT is a separate annual tax on residential land left vacant for more than 6 months in the previous year. It is distinct from general land tax and is based on capital improved value (land + buildings), not site value.
Expanded Coverage from 2025
From 2025, VRLT applies to all Victorian residential land — not just the 16 Melbourne council areas it previously covered.
New from 2026: Undeveloped Land
From 1 January 2026, VRLT also applies to undeveloped land in metropolitan Melbourne that has remained undeveloped for 5+ continuous years and is capable of residential development.
When Does a Property Qualify as Vacant?
- Not lived in for 6+ months of the previous year (by owner, permitted occupant, or genuine tenant)
- The 6 months do not need to be continuous or by the same person
- Being listed for rent or sale does NOT count — it must actually be occupied
- Homes under construction/renovation for 2+ years
- Uninhabitable properties for 2+ years
Notification Obligation
If you own vacant residential land, you must notify the SRO by 15 February each year — even if you believe your land is exempt. Failure to notify may result in penalties.
VRLT Rates
| Vacancy Period | Rate (of capital improved value) |
|---|---|
| 1 year | 1% of capital improved value |
| 2 years | 2% of capital improved value |
| 3+ years | 3% of capital improved value |
| Undeveloped metro (5+ yrs) | 1% of capital improved value |
| New residential (unused 3+ yrs) | 1% of capital improved value |
VRLT Exemptions
Land that is exempt from general land tax is also exempt from VRLT
Holiday homes (genuine holiday/recreational use)
Properties that changed ownership in the previous year
Land that recently became residential land
Work accommodation
Undeveloped land adjoining your home or holiday home
From 2026: land with a residence under construction/renovation or uninhabitable at any time in the previous year
Key Dates & Obligations
Missing these dates can result in penalty tax. Mark them in your calendar.
Ownership date
Land tax is assessed based on who owns the land at midnight on 31 December of the prior year.
Absentee owner notification
If you are an absentee owner at 31 December, you must notify SRO by 15 January.
Vacant land notification
If you own vacant residential land, you must notify SRO by 15 February.
Land tax assessments issued
SRO generally issues land tax assessments between January and June each year.
VRLT assessments issued
Vacant residential land tax assessments are issued before 30 June.
Need More Detail?
The State Revenue Office Victoria website contains the full legislation, official calculators, and the ability to lodge assessments and notifications.