Land tax in Victoria 2025: Who pays & How is it calculated?
Updated on November 6, 2025.
Owning property in Victoria comes with a few hidden costs – and land tax is one that often surprises people. This guide explains what land tax is, who pays it, how much it costs, and the latest rule changes you should know before the next assessment hits your inbox.
Who pays land tax in Victoria?
In Victoria, the responsibility for paying land tax rests with the landowner. The State Revenue Office (SRO) assesses this tax every year, based on the total value of all taxable land owned as of 31 December of the previous year.
Land tax applies to [most types of property — including investment homes, holiday houses, and vacant land].
However, some properties are exempt, such as:
- Your principal place of residence (PPR)
- Farms and primary production land
- Charitable organisations and public institutions
- Certain rooming houses, retirement villages, and conservation-protected land
These exemptions ensure that land tax generally applies only to properties held for investment or commercial purposes.
How is land tax calculated in Victoria?
Land tax is calculated based on the total taxable value of all the land a person or entity owns in Victoria as of 31 December each year.
The taxable value is the unimproved value of the land, determined by the Valuer-General, and the rates are published annually by the SRO.
For the 2024–25 financial year, the land tax starts at $500 for properties valued between $50,000 and $100,000, and increases through a mix of flat fees and percentage rates. At the top tier, land valued over $3 million attracts $31,650 plus 2.65% of the value above that threshold.
Separate surcharge rates apply for:
- Trust-owned land (trust surcharge rates)
- Absentee owners, with the surcharge rate doubled from 2% to 4% in 2024
- A lower minimum property value threshold for absentee owners — now $50,000 instead of $300,000
You can find the full rate breakdown on the State Revenue Office (SRO) website.
Recent land tax updates and exemptions for 2024–25
The 2024–25 financial year introduced several important updates aimed at easing pressure on some property owners:
- Homes under construction or renovation that are delayed because of a builder’s liquidation can now receive an extended exemption for up to two years.
- Land under a conservation agreement with the Trust for Nature may qualify for an exemption.
- Properties used by immediate family members eligible for a special disability trust may also be exempt – even if the trust hasn’t been formally created.
- Foreign owners of residential land in Victoria continue to face progressive surcharge rates.
If you own vacant residential land, you should also check whether you’re affected by the Vacant Residential Land Tax (VRLT), which is applied separately.
What is the COVID-19 Debt Temporary Land Tax Surcharge?
To help the state recover from pandemic-related debt, Victoria introduced a temporary COVID-19 Debt Land Tax Surcharge starting in the 2024–25 financial year.
This surcharge applies in addition to normal land tax and is based on the total value and ownership structure of your landholdings. You can view full details of the rates and thresholds on the SRO website.
Land tax exemptions and concessions
Can property owners seek an exemption from land tax?
Property owners may be eligible for exemptions or concessions depending on how their land is used.
Common land tax exemptions include:
- Principal Place of Residence (PPR): your main home is generally exempt.
- Charitable organisations: land used for charitable purposes.
- Government bodies: land used for public purposes.
- Special disability trusts: land owned for the benefit of a person with a disability.
- Business or farming: land primarily used for business or agricultural purposes may receive a concession.
- Primary production land and affordable housing projects may also qualify under specific conditions.
Each exemption has eligibility requirements, and rules can change annually, so it’s best to confirm with your conveyancer or check directly with the SRO before applying.
Land tax and property settlement: how it works
Is land tax in Victoria adjusted at settlement of a property purchase?
Traditionally, when selling or buying property, land tax was adjusted at settlement.
The seller would pay the tax up to the date of settlement, and the buyer would cover the remainder — splitting the annual land tax bill based on ownership period.
However, since 1 January 2024, this practice has changed. Under new legislation, land tax apportionment is no longer allowed for property sales under $10 million.
That means:
- Sellers cannot pass any portion of their land tax or windfall gains tax to buyers.
- The rule applies to all contracts signed on or after 1 January 2024.
- Contracts or options made before that date are not affected.
These changes, introduced under the Sale of Land Amendment Act 2023, ensure buyers aren’t hit with unexpected tax costs and promote fairer property transactions.
Conveyancers now handle land tax adjustments strictly within these rules to stay compliant.
Who is land tax paid to in Victoria?
In Victoria, land tax is paid to the State Revenue Office (SRO), which is a division of the Victoria Department of Treasury and Finance. The SRO is responsible for assessing and collecting land tax from property owners in Victoria.
Once your tax is assessed, you’ll receive a Land Tax Assessment Notice explaining how much you owe and the payment due date.
You can pay:
- Online through the SRO’s website
- By mail (cheque or money order)
- By phone or in person, by credit card or debit card, at an Australia Post or an SRO’s office
If you miss the payment deadline, interest and penalty charges may apply, and the SRO may take legal action to recover the unpaid taxes.
Disagree with your land tax assessment?
If you think your assessment is incorrect, for example, if the valuation seems too high – you can lodge an objection online.
This must be done within two months of receiving your assessment notice.
You’ll still need to pay the full amount by the due date, but if your objection succeeds, the SRO will issue a refund for any overpayment.
Through the My Land Tax portal, you can also:
- Update ownership or contact details
- Apply for exemptions or update property usage
- Review previous assessments and account history
How Haitch Conveyancing can help
Dealing with land tax assessments or settlement adjustments can be confusing — especially with the recent rule changes.
At Haitch Conveyancing, our experienced property lawyers and conveyancers can help you:
- Understand your land tax obligations
- Check whether your property qualifies for an exemption or concession
- Handle objections or reviews with the SRO
- Manage settlement adjustments in compliance with current laws
📞 Contact us on (03) 8590 8370 for clear, professional advice about your land tax situation.
