Victorian Land Tax for Property Investors: What It Costs in 2026
By Victoria Whittaker · Updated October 2026 · 6 min read
Land tax is one of the most overlooked costs I see when investors run their numbers.
It does not show up in the listing.
It does not show up at settlement.
It arrives as a bill, every year, for as long as you own the property.
So before you buy an investment property in Geelong, on the Bellarine or on the Surf Coast, it is worth knowing exactly how it works.
What Is Land Tax?
Land tax is an annual state tax on land you own in Victoria. Your own home is generally exempt as your principal place of residence, but an investment property is not.
It is worked out on the site value of the land, which is the value of the land only, not the house sitting on it.
And importantly, it is based on the combined site value of all the taxable Victorian land you own at midnight on 31 December. Your 2026 bill is based on what you owned at the end of 2025.
The Threshold Is Now $50,000
This is the change that has caught a lot of investors out.
Since the 2024 land tax year, the general tax-free threshold has been $50,000 of total taxable site value.
In practice, that means almost every investment property in our region will attract land tax, even a modest unit.
Many investors who bought years ago, and never received a bill, are now paying it for the first time.
2026 General Land Tax Rates
These are the general rates for individuals. They already include the temporary COVID debt levy, which is legislated to apply until 2033, so you do not need to add anything on top.
| Total taxable site value | Land tax payable |
|---|---|
| Under $50,000 | Nil |
| $50,000 to under $100,000 | $500 |
| $100,000 to under $300,000 | $975 |
| $300,000 to under $600,000 | $1,350 plus 0.3% of the value above $300,000 |
| $600,000 to under $1 million | $2,250 plus 0.6% of the value above $600,000 |
| $1 million to under $1.8 million | $4,650 plus 0.9% of the value above $1 million |
| $1.8 million to under $3 million | $11,850 plus 1.65% of the value above $1.8 million |
| $3 million and over | $31,650 plus 2.65% of the value above $3 million |
Source: State Revenue Office Victoria general rates for the 2026 land tax year. Trusts, companies and absentee owners have different rules.
What That Looks Like in Real Numbers
Say you own one investment property in Geelong with a site value of $350,000.
Your land tax would be $1,350, plus 0.3% of the $50,000 above $300,000.
That is $1,500 a year, or roughly $29 a week.
Now say you buy a second property with a site value of $430,000.
Your combined site value is now $780,000, so your bill becomes $2,250 plus 0.6% of $180,000.
That is $3,330 a year, or roughly $64 a week.
Because the values are added together, a second property can push you into a higher bracket. Each new purchase changes the cost of the ones you already own.
Where Investors Get Caught Out
- Buying a second or third property. The combined value is what counts, so the bill rarely grows in a straight line.
- Buying through a trust. Trusts generally have a lower threshold and a surcharge. Get advice on structure before you sign, not after.
- Living overseas. Absentee owners pay a surcharge on top of the general rates.
- Using old figures. Online cash flow examples written before 2024 often leave land tax out entirely.
- Larger land. On a big block in Highton or a coastal lot in Torquay, the land is most of the value, and land is what is taxed.
How to Build It Into Your Numbers
Treat land tax like council rates.
It is not a one-off. It is part of the weekly cost of holding the property.
When you assess a property, estimate the site value, work out your land tax on your total holdings, then divide it by 52 and add it to your weekly holding costs.
Land tax on an income-producing property is generally tax deductible, but how that works for you is a question for your accountant.
That said, a deduction reduces the cost. It does not remove it.
Ask Yourself This
Do you know the site value of the property you are looking at?
Do you know your combined site value across everything you own?
Have you included land tax in your weekly cash flow?
If the answer to any of these is no, it is worth running the numbers again before you make an offer.
The Bottom Line
Land tax will not usually make or break a good investment.
But leaving it out can make an average investment look like a good one.
Know the number before you buy.
Run your holding costs in a couple of minutes
Use the free investor calculators, then bring your results to a free 20-minute strategy call.
This article is general information only and is not tax, financial or legal advice. Land tax rates and rules can change. Figures are based on State Revenue Office Victoria general rates for 2026 as at October 2026. Always confirm your position with the State Revenue Office Victoria and your accountant.