FRE.DM’s Guide to Australian Land Tax and Stamp Duty Rates for Individuals
There’s something so intrinsically special about buying property in Australia... Whether it’s a first step toward independence as a first-homeowner or a strategic move to expand an investment portfolio, it’s truly one of life’s most exciting and rewarding ventures. That said, taxes like land tax and stamp duty can sometimes make the process feel a bit overwhelming.
Before these costs start to overshadow the magic, let’s break them down state by state and explore how to navigate them to your advantage — whether you’re just starting out on your quest to find the perfect first abode or adding to that property portfolio of yours.
Before we get into the thick of it, let’s introduce you to the concepts of land taxes and stamp duties.
What Are Land Taxes?
Think of land tax as a yearly subscription fee for owning property (an interesting concept, especially after you pay to purchase a property..). State and territory governments calculate it based on the land’s value — excluding any buildings or structures on it. While your primary residence typically gets an exemption, investment properties, holiday homes, and commercial land aren’t so lucky. Each state sets its own threshold, and you’ll only start paying once your property’s land value surpasses that limit.
What Are Stamp Duties?
Stamp duty, or land transfer duty, is essentially a one-time entry fee for property ownership. It’s calculated as a percentage of the purchase price or market value (whichever is higher) and the rates vary by state.
Keep in mind that stamp duty costs can change based on:
The property’s value
The type of property you purchase (e.g., house, vacant land, off-the-plan)
Your residency status
Whether you qualify as a first-home buyer
Your eligibility for pensioner concessions
Let’s break down the land tax and stamp duty for each state and territory, so you know what to expect in each region.
NEW SOUTH WALES
Land Tax –
If your property exceeds the general threshold of $1,075,000, you’ll be required to pay $100 plus 1.6% of the land value over the threshold, up to the premium threshold.
For properties that hit the premium threshold of $6,571,000, the tax increases to $88,036 plus 2% of the land value above that amount.
While NSW land tax thresholds have typically been adjusted annually, the 2024-2025 State Budget has introduced a freeze on both the general and premium thresholds for years following 2024. These thresholds will, however, remain subject to periodic reviews.
It’s also worth noting that an additional 4% tax applies to all residential land owned by foreign persons, increasing to 5% starting from the 2025 land tax year.
In NSW, the taxing date is set at midnight on December 31 each year.
Stamp Duty –
Stamp duty in New South Wales is calculated on a sliding scale based on your property’s value. Residential properties valued up to $1,212,000 but below $3 million are subject to the standard transfer duty rate, while properties worth over $3,636,000 incur a premium duty rate of 7%.
Foreign purchasers of residential property are subject to an additional 8% surcharge (not applicable to listed landholder acquisitions). This surcharge will increase to 9% starting January 1, 2025.
First-home buyers may qualify for a stamp duty exemption through the First-Home Buyers Assistance Scheme.
Below is a table of the standard stamp duty rates in NSW:
| Property value | Standard stamp duty payable |
|---|---|
| $0 – $17,000 | $1.25 for every $100 (minimum $20) |
| $17,000 – $36,000 | $212, plus $1.50 for every $100 over $17,000 |
| $36,000 – $97,000 | $497, plus $1.75 for every $100 over $36,000 |
| $97,000 – $364,000 | $1,564, plus $3.50 for every $100 over $97,000 |
| $364,000 – $1,212,000 | $10,909 plus $4.50 for every $100 over $364,000 |
| $1,212,000 | $49,069, plus $5.50 for every $100 over $1,212,000 |
In NSW, properties valued above $3 million are subject to a premium stamp duty rate. For properties exceeding $3,505,000, the maximum duty is $164,502, plus an extra $7.50 for every $100 over that amount.
VICTORIA
Land Tax –
In Victoria, both the rates have increased, and the tax-free threshold has been reduced from $300,000 to $50,000 for individuals and companies alike.
The maximum rate for the General Land Tax has been raised to 2.65%, up from 2.55%.
Additionally, extra surcharges apply for land held in trusts.
An absentee owner surcharge of 4% and a vacant residential land tax of 1% may also apply, depending on the circumstances, in addition to the general rates.
Another consideration is Victoria’s COVID-19 Debt Levy, which is a temporary tax aimed at higher-income earners to help cover the state’s pandemic-related debt. This levy applies to individuals with taxable incomes above a certain threshold and will gradually phase out over the next decade.
Below is a table outlining the general land tax rates for Victoria:
| Total taxable value of land holdings | Land tax payable |
|---|---|
| < $50,000 | Nil |
| $50,000 to < $100,000 | $500 |
| $100,000 to <$300,000 | $975 |
| $300,000 to < $600,000 | $1350 plus 0.3% of amount > $300,000 |
| $600,000 to < $1,000,000 | $2250 plus 0.6% of amount > $600,000 |
| $1,000,000 to < $1,800,000 | $4650 plus 0.9% of amount > $1,000,000 |
| $1,800,000 to < $3,000,000 | $11,850 plus 1.65% of amount > $1,800,000 |
| $3,000,000 and over | $31,650 plus 2.65% of amount > $3,000,000 |
Stamp Duty –
Victoria is typically the most expensive, out of all the states and territories, for stamp duty. The land transfer duty in VIC is calculated as a percentage of the property’s value. However, a concessional rate applies to new residential properties valued under $550,000, provided you live at the property for at least 12 months.
There’s an additional 8% surcharge that applies to foreign purchasers of residential property, which includes the listed landholder acquisitions.
Below are the general stamp duty rates in Victoria:
| Property Value | Stamp Duty Payable |
|---|---|
| $0 – $25,000 | 1.4% of the value of the property |
| $25,001 – $130,000 | $350, plus 2.4% of the value above $25,000 |
| $130,001 – $960,000 | $2,870, plus 6% of the value above $130,000 |
| $960,001 – $2,000,000 | 5.5% of the value of the property |
| Over $2,000,000 | $110,000, plus 6.5% of the value above $2,000,000 |
QUEENSLAND
Land Tax –
As an individual landowner in Queensland, you are required to pay land tax if the total taxable value of your freehold land — both land you own solely and your share of land owned jointly with others — reaches $600,000 or more as of June 30th.
The taxable value of your land is determined by the annual land valuation issued by the Valuer-General.
Keep in mind that an additional 3% tax applies to all taxable land owned by absentee individuals, foreign corporations, and trustees of foreign trusts.
Below are the Queensland land tax rates that apply to the total taxable value of land owned by an individual as of midnight on June 30th:
| Total Taxable Value | Rate of Tax |
|---|---|
| $0 – $599,999 | $0 |
| $600,000 – $999,999 | $500 plus one cent for each dollar more than $600,000 |
| $1,000,000 – $2,999,999 | $4,500 plus 1.65 cents for each dollar more than $1,000,000 |
| $3,000,000 – $4,999,999 | $37,500 plus 1.25 cents for each dollar more than $3,000,000 |
| $5,000,000 – $9,999,999 | $62,500 plus 1.75 cents for each dollar more than $5,000,000 |
| $10,000,000 or more | $150,000 plus 2.25 cents for each dollar more than $10,000,000 |
Stamp Duty –
Stamp duty in Queensland is calculated as a percentage of the property value. A concessional rate applies to the first $350,000 of a residential property, with general transfer duty rates applying to the remainder.
An additional 8% surcharge is applied to foreign purchasers of residential property (with a concessional 0.8% rate for listed landowner acquisitions).
Below are the general stamp duty rates in Queensland:
| Property Value | Stamp Duty Payable |
|---|---|
| $0 – $5,000 | Nil |
| $5,001 – $75,000 | $1.50 for each $100, or part of $100, over $5,000 |
| $75,001 – $540,000 | $1,050, plus $3.50 for each $100, or part of $100, over $75,000 |
| $540,001 – $1,000,000 | $17,325, plus $4.50 for each $100, or part of $100, over $540,000 |
| $1,000,001+ | $38,025, plus $5.75 for each $100, or part of $100, over $1,000,000 |
SOUTH AUSTRALIA
Land Tax –
Land ownership, site value (not capital value), and land use as of midnight on June 30th each year are used to determine the land tax for the upcoming financial year.
A surcharge of 2.4% applies to land held in trusts where the interests of the trust beneficiaries are not disclosed or cannot be identified.
Below are the South Australian land tax rates:
| Taxable Land Value | Land Tax Rates |
|---|---|
| Does not exceed $732,000 | Nil |
| $0.50 for every $100 or part of $100 above $732,000 | |
| Exceeds $1,176,000 but not $1,711,000 | $2,220 plus $1.00 for every $100 or part of $100 above $1,176,000 |
| Exceeds $1,711,000 but not $2,738,000 | $7,570 plus $2.00 for every $100 or part of $100 above $1,711,000 |
| Exceeds $2,738,000 | $28,110 plus $2.40 for every $100 or part of $100 above $2,738,000 |
Stamp Duty –
Stamp duty in South Australia is calculated on a sliding scale based on the property value. The cost of stamp duty in SA varies depending on the property’s value, the type of property being purchased, your residency status, and your eligibility for pensioner concessions.
In June 2024, the South Australian government completely abolished stamp duty for first-home buyers purchasing or building a new home, with no property price caps.
An additional 7% surcharge applies to foreign purchasers of residential property, including listed landholder acquisitions.
Below are the general stamp duty rates in South Australia:
| Purchase Price of Property | Stamp Duty Payable |
|---|---|
| $0 – $12,000 | $1 for every $100 or part of $100 |
| $12,001 – $30,000 | $120, plus $2.00 for every $100 or part of $100 over $12,000 |
| $30,001 – $50,000 | $480, plus $3.00 for every $100 or part of $100 over $30,000 |
| $50,001 – $100,000 | $1,080, plus $3.50 for every $100 or part of $100 over $50,000 |
| $100,001 – $200,000 | $2,830, plus $4.00 for every $100 or part of $100 over $100,000 |
| $200,001 – $250,000 | $6,830, plus $4.25 for every $100 or part of $100 over $200,000 |
| $250,001 – $300,000 | $8,955, plus $4.75 for every $100 or part of $100 over $250,000 |
| $300,001 – $500,000 | $11,330, plus $5.00 for every $100 or part of $100 over $300,000 |
| $500,000 + | $21,330, plus $5.50 for every $100 or part of $100 over $500,000 |
WESTERN AUSTRALIA
Land Tax –
WA land tax is calculated based on the combined unimproved value of all land held under the same ownership (excluding exempt land) at midnight on June 30th.
The land tax payable is determined by applying the appropriate WA land tax rate to the combined taxable value of the land owned by the same individual or entity.
Only land owned by the same owners is combined for this calculation.
The Valuer-General determines the unimproved values for all land in WA.
It’s also important to note that a Metropolitan Region Improvement Tax rate of 0.14% applies to properties located within metropolitan areas.
Below are the WA land tax rates:
| Taxable Land Value | Land Tax Rates |
|---|---|
| $0 – $300,000 | Nil |
| $300,001 – $420,000 | Flat rate of $300 |
| $420,001 – $1,000,000 | $300 + 0.25% for each $1 in excess of $420,000 |
| $1,000,001 – $2,500,000 | $1,450 + 0.5% for the amount over $1,000,000 |
| $2,500,001 – $5,000,000 | $11,950 + 1% for the amount over $2,500,000 |
| Over $5,000,000 | $36,950 + 1.5% of the amount over $5,000,000 |
Stamp Duty –
In Western Australia, stamp duty is applied on a sliding scale based on the value of the property. Business or residential properties valued under $200,000 benefit from a concessional rate, with higher rates applied as the property value increases.
First-home buyers in WA can take advantage of a stamp duty exemption when purchasing a new property or vacant land, provided the value falls within the following limits:
Residential properties (home and land) under $450,000, offering a potential saving of up to $15,390.
Vacant land valued at less than $300,000.
Additionally, a 7% surcharge is imposed on foreign purchasers of residential properties, including acquisitions of listed landholdings.
Here are the general stamp duty rates for Western Australia:
| Property Value | Stamp Duty Payable |
|---|---|
| $0 – $120,000 | $1.90 per $100 or part thereof |
| $120,001 – $150,000 | $2,280, plus $2.85 per $100 or part thereof above $120,000 |
| $150,001 – $360,000 | $3,135, plus $3.80 per $100 or part thereof above $150,000 |
| $360,001 – $725,000 | $11,115, plus $4.75 per $100 or part thereof above $360,000 |
| $725,001 + | $28,453, plus $5.15 per $100 or part thereof above $725,000 |
TASMANIA
Land Tax –
In Tasmania, land tax is determined based on a property’s actual use and ownership as of July 1st each year.
The tax applies to properties classified as “General” land by the Commissioner of State Revenue. This includes commercial properties, vacant land, rental properties, holiday homes, and unoccupied homes.
Land classified as an owner’s principal residence, primary production land, or properties used for specific purposes such as religious activities, medical establishments (excluding General Practice), Aboriginal cultural activities, retirement villages, conservation covenants, or charitable institutions are exempt from land tax.
An additional 2% surcharge land tax rate applies to all residential land owned by foreign persons (other than principal place of residence).
Here are the land tax rates for Tasmania:
| Taxable Land Value | Land Tax Rates |
|---|---|
| $0 – $125,000 | Nil |
| $125,001 and above | $50 plus 0.45% of value above $125,000 |
Stamp Duty –
Stamp duty in Tasmania is calculated on a sliding scale based on the property’s value, with rates increasing as purchase thresholds rise. Eligible buyers may qualify for duty concessions or exemptions depending on the property's value and contract dates.
In June 2024, the Tasmanian government introduced a full stamp duty exemption for eligible first-home buyers purchasing established homes valued under $750,000. This exemption is valid until June 30, 2026, after which it will be subject to review.
For those not eligible as first-home buyers, stamp duty is payable on properties purchased as a primary residence, investment, or for commercial purposes in Tasmania.
Additionally, there’s an 8% surcharge for foreign purchasers of residential properties and a 1.5% surcharge for foreign purchasers of primary production properties. This includes listed landholder acquisitions but excludes commercial residential properties.
Here are Tasmania’s general stamp duty rates:
| Property Value | Stamp Duty Payable |
|---|---|
| Up to $3,000 | $50 |
| $3,001 – $25,000 | $50, plus $1.75 for every $100, or part, by which the dutiable value exceeds $3,000 |
| $25,001 – $75,000 | $435, plus $2.25 for every $100, or part, by which the dutiable value exceeds $25,000 |
| $75,001 – $200,000 | $1,560, plus $3.50 for every $100, or part, by which the dutiable value exceeds $75,000 |
| $200,001 – $375,000 | $5,935, plus $4.00 for every $100, or part, by which the dutiable value exceeds $200,000 |
| $375,001 - $725,000 | $12,935, plus $4.25 for every $100, or part, by which the dutiable value exceeds $375,000 |
| $725,001+ | $27,810, plus $4.50 for every $100, or part, by which the dutiable value exceeds $725,000 |
NORTHERN TERRITORY
Land Tax –
There is no existing land tax in the Northern Territory.
Stamp Duty –
Stamp duty in the Northern Territory is calculated as a flat percentage of a property’s dutiable value, which is the higher of the purchase price or market value. For properties with a dutiable value under $525,000, the NT government uses the following formula to estimate stamp duty:
(0.06571441 × V²) + 15V
Where V represents 1/1,000 of the property’s value.
The Northern Territory does not offer stamp duty exemptions or concessions for first-home buyers. However, the House and Land Package Exemption (HLPE) is available to eligible buyers.
This exemption applies to house and land packages purchased before June 30, 2027, if the building contractor meets one of these conditions:
Constructs or places a new detached home on the land they sold you.
Completes construction of a partially built detached new home on the land they sold you.
Transfers ownership of a completed detached new home on the land they sold you.
Additionally, first-home buyers in the NT may be eligible for a $50,000 grant, which can further reduce the cost of buying a home.
Here are the general stamp duty rates in the Northern Territory:
| Property Value | Standard Stamp Duty Payable |
|---|---|
| $0 – $525,000 | Formula above used to find duty payable. |
| $525 000 - $3,000,000 | 4.95% of the dutiable value |
| $3,000,000 - $5,000,000 | 5.75% of the dutiable value |
| $5,000,000+ | 5.95% of the dutiable value |
Australian Capital Territory
Land Tax –
The ACT government assesses land tax on a quarterly basis, based on the property’s status as of four key dates: July 1, October 1, January 1, and April 1 each year.
Land tax in the ACT consists of two components: a fixed charge and a valuation charge.
The fixed charge for land tax is currently $1,612.
The valuation charge is calculated by applying a rating factor to the property’s Average Unimproved Value (AUV). The AUV is the average of the property’s unimproved value over up to five years.
For instance, the AUV for 2024–25 is determined by averaging the property’s unimproved values from 2020, 2021, 2022, 2023, and 2024.
In addition, an extra surcharge of 0.75% applies to all residential land owned by foreign persons, excluding their principal place of residence.
Stamp Duty –
Stamp duty in the ACT is calculated on a sliding scale according to the property’s value. The rates differ between eligible owner-occupier transactions (requiring buyers to live in the property for at least 12 months) and non-eligible transactions.
For eligible owner-occupiers, a reduced stamp duty rate applies to properties valued up to $1,455,000.
In the ACT, stamp duty exemptions for first-home buyers and properties under $1,000,000 depend on household income and the number of dependent children.
Below are the general stamp duty rates for eligible owner-occupier transactions in the ACT –
| Property Value | Stamp Duty Payable |
|---|---|
| $0 - $260 000 | $0.40 per $100 or part of thereof up to $260,000 |
| $260,001 - $300 000 | $1,040, plus $2.20 per $100 or part thereof by which the value exceeds $260,000 |
| $300,001 - $500 000 | $1,920, plus $3.40 per $100, or part thereof by which the value exceeds $300,000 |
| $500,001 - $750 000 | $8,720, plus $4.32 per $100, or part thereof by which the value exceeds $500,000 |
| $750,001 - $1,000,000 | $19,520, plus $5.90 per $100, or part thereof by which the value exceeds $750,000 |
| $1,000,001 - $1,455,000 | $34,270, plus $6.40 per $100, or part thereof by which the value exceeds $1,000,000 |
| $1,455,001 + | $4.54 flat rate per $100 applied to the total transaction value |
Below are the general stamp duty rates for non-eligible owner-occupier transactions in the ACT –
| Property Value | Stamp Duty Payable |
|---|---|
| $0 - $200,000 | $1.20 per $100 or part thereof up to $200,000 |
| $200,001 - $300,000 | $2,400, plus $2.20 per $100 or part thereof by which the value exceeds $200,000 |
| $300,001 - $500,000 | $4,600, plus $3.40 per $100 or part thereof by which the value exceeds $300,000 |
| $500,001 - $750,000 | $11,400, plus $4.32 per $100 or part thereof by which the value exceeds $500,000 |
| $750,001 - $1,000,000 | $22,200, plus $5.90 per $100, or part thereof by which the value exceeds $750,000 |
| $1,000,001 - $1,455,000 | $36,950, plus $6.40 per $100 or part thereof by which the value exceeds $1,000,000 |
| $1,455,001 + | $4.54 flat rate per $100 applied to the total transaction value |
Stamp duties and land taxes can become significant expenses — something that's absolutely evident from a quick look at the rates across each state.
So, how can you make the most of these costs while navigating the property market?
There are several ways to turn land taxes and stamp duties to your advantage, here are six ways to do exactly that —
Take advantage of available exemptions and concessions!
Here are some key perks offered by various states:
First-Home Buyer Benefits: States like Queensland and Victoria often waive or reduce stamp duty for eligible first-home buyers purchasing properties below specific price thresholds.
Primary Residence Exemption: Land tax doesn’t apply to your main home, so be sure to declare your principal place of residence.
Off-The-Plan Properties: Opting for these can significantly reduce your stamp duty since it’s calculated based only on the land value during the construction phase.
Plan your purchase strategically.
Since land tax is assessed at the end of the year, buying a property after the assessment date can help you avoid paying land tax for that year. Whenever possible, negotiate to settle after the land tax assessment date.
Diversify property ownership across states.
Since each state has its own land tax thresholds, owning properties in different states can help you stay below the limit in each, effectively keeping your overall tax bill more manageable.
Consider using trusts or companies—strategically.
Purchasing property through or alongside a trust or company can provide benefits like spreading liabilities or accessing lower tax rates. However, be cautious, as some states impose higher land tax rates on trusts.
Opt for the right tax arrangement.
In states like New South Wales, you have the option to choose an annual property tax instead of paying stamp duty upfront. This can be a smart move, especially if you don’t intend to hold onto the property long-term.
Stay updated on tax trends.
Tax laws are constantly in a state of flux. Some states are moving towards annual property taxes, which may affect your investment strategy. Staying informed is vital.
Here are some additional tips to optimise your property strategy —
Invest in growth areas.
Target regions offering stamp duty concessions for new developments. These areas often present strong growth potential, which can enhance your investment returns.Maximise deductions.
For investment properties, remember that stamp duty and land tax may be deductible against rental income.Track land values.
Land values are assessed annually and can fluctuate. Stay proactive in understanding how these assessments affect your tax liability and adjust your portfolio accordingly.Explore offset opportunities.
If your state provides land tax rebates for properties with environmental or heritage value, consider investing in these specialised markets.
Buying property can be overwhelming, with financial details a’plenty to manage. One misstep could cost you — big time. The best advice we can offer you is to work with a financial advisor who can help you navigate each decision with your financial goals in mind, someone who gets it. If that thought brings you some peace of mind, let us help. Michaela here at FRE.DM Wealth is experienced in property investments — whether it's your first or your fifth. Let’s make sure you get the best deal for both your wallet and your peace of mind.
