Received a land tax assessment notice? You’re not alone. Many Queensland property owners get caught off guard by this annual state tax, especially when buying investment properties or inheriting land.
Land tax applies to freehold land you own in Queensland — but not everyone pays it. Whether you’re liable depends on the total value of your landholdings and their structure.
Key Insights
- Land tax is an annual Queensland state tax on freehold land, calculated on holdings valued at midnight on 30 June
- Individuals pay tax if total land value exceeds $600,000; companies and trusts at $350,000
- Your principal residence (home) is generally exempt from land tax
- Rates use a progressive scale — the more land you own, the higher the rate
- Investment properties, vacant land, and commercial properties are typically taxable
What Is Land Tax?
Land tax is a state tax levied on the total taxable value of freehold land you own in Queensland. It’s been around since 1915 and helps fund government services and infrastructure.
The tax applies to various property types, including vacant land, investment properties, commercial premises, and units in body corporate schemes. Notably, land you lease from the Crown or state-owned land isn’t subject to this tax.
Who Needs to Pay Land Tax?
You’ll need to pay land tax if your total landholdings exceed certain thresholds:
- For individuals: $600,000 or more in total taxable land value
- For companies, trusts, and absentees: $350,000 or more
The Queensland Revenue Office calculates your liability based on all freehold land you own at midnight on 30 June each year. If you own land jointly with others, your share is added to any other land you own individually.
Current Land Tax Rates (2025)
Land tax uses progressive rates. For individuals, the current structure comprises multiple tax bands, starting at $600,000, with rates increasing as the total land value rises.
The exact amount depends on your total taxable value and ownership type. Companies and trustees face different rate schedules. You can check the QRO land tax calculator for precise calculations based on your circumstances.
Common Exemptions
The most common exemption is the home exemption for your principal residence. If you live in a property as your main home, you can apply to exempt that land from your total taxable value, potentially eliminating your land tax liability entirely.
Other exemptions exist for primary production land, certain charitable organisations, and specific circumstances, such as mobile dwelling parks. Remember, exemptions don’t apply automatically. You must apply through the Queensland Revenue Office.
What About Property Settlements?
If you’re going through a relationship breakdown, property settlement lawyers can help ensure land tax implications are properly considered when dividing assets. Land tax can significantly impact the value and ongoing costs of property assets.
Getting It Right
Land tax can be complex, especially if you own multiple properties or hold land through different structures. The taxable value isn’t the same as market value — it’s based on valuations from the Valuer-General.
When purchasing property, your conveyancer should obtain a land tax clearance certificate. This ensures you won’t inherit someone else’s unpaid land tax liability, since the tax applies to whoever owned the land on 30 June for the entire financial year.
If you’ve received an assessment notice you weren’t expecting or need help understanding your land tax obligations, experienced Cairns lawyers can review your situation and help you explore any available exemptions or restructuring options.