What is the land tax threshold in VIC 2026?
The general land tax threshold in Victoria for 2026 is scheduled to revert to $300,000. This follows temporary changes that saw the threshold reduced to $50,000 for 2024 and 2025.
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How it works in practice
Understanding Victorian Land Tax
Land tax is an annual tax levied on the owners of taxable land in Victoria. The tax-free threshold is the value of your land below which you are not required to pay land tax. It is important for property owners to understand this threshold as it directly impacts their tax obligations.
2026 Threshold Reversion
For 2024 and 2025, the general land tax threshold was temporarily reduced from $300,000 to $50,000 as part of economic recovery measures. However, from 1 January 2026, the tax-free threshold is set to revert to its previous level of $300,000. This means that if the total unimproved value of your taxable land in Victoria is below $300,000, you will generally not be liable for land tax in 2026.
How Land Tax is Calculated
Land tax is calculated based on the total unimproved value of all taxable land you own, excluding your principal place of residence and other exempt properties. Once the total value exceeds the threshold, a progressive tax rate applies. The State Revenue Office (SRO) assesses land values annually, so it is important to check their official guidance regularly.
Important exceptions
The principal place of residence is typically exempt from land tax, regardless of value.
Other exemptions may apply to certain types of land, such as primary production land, charitable institutions, and retirement villages. Check the State Revenue Office website for a comprehensive list of exemptions.
While the general threshold is expected to revert in 2026, legislative changes can occur. Always confirm the latest thresholds and exemptions directly with the State Revenue Office Victoria.
What you should do now
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Review your land holdings and their unimproved capital values in Victoria.
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Understand if your property qualifies for any land tax exemptions, such as being your principal place of residence.
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Monitor official announcements from the State Revenue Office Victoria for any updates on the 2026 land tax threshold.
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If your land value approaches or exceeds the threshold, use the SRO's online tools to estimate your potential land tax liability.
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Seek professional advice from a tax consultant or financial advisor if you have complex land tax questions or multiple properties.
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