Land tax in Queensland - what every property investor needs to know in 2026
Queensland Revenue Office land tax rates (2025-26) via Propboss, AusTax Tools, Property Tax Tools, and LJ Hooker (November 2025). Threshold comparisons from JMD Mortgages (February 2026) and Propboss.
Land tax is the ongoing annual cost that catches most first-time investors completely off guard. Unlike stamp duty which you pay once, land tax arrives every year - and with Brisbane land values rising sharply, more investors are crossing the threshold than ever before. Here is exactly how it works.
In the 2023-24 financial year, almost 195,000 Queensland properties were subject to land tax - a 14% increase from the prior year. That increase reflects what has happened to land values across Southeast Queensland: as property prices have risen, the unimproved land value component has grown with them, pushing more investors over the threshold. If you bought a Brisbane investment property three or four years ago and have not reviewed your land tax position recently, now is the time.
This guide explains how Queensland land tax works, what the current thresholds and rates are, how aggregation catches investors with multiple properties, and the practical strategies to manage your liability.
- 1.What land tax is - and what it is not
- 2.The 2025-26 rates and thresholds for individuals
- 3.Real examples - one property and two properties
- 4.The trust threshold trap
- 5.The controversial interstate rule
- 6.Is land tax deductible
- 7.Comparing Queensland to other states
What land tax is - and what it is not
Land tax in Queensland is an annual state government tax on the unimproved value of land you own - not the market value of the property including buildings, and not the purchase price you paid. The unimproved value is the value of the land itself in its natural state, as assessed each year by the Queensland Valuer-General. In practice, this figure is significantly lower than the market value of the property - a Brisbane unit worth $730,000 on the open market might have an unimproved land value of $180,000 to $280,000 depending on the block size and location.
Land tax is assessed by the Queensland Revenue Office based on land you own at midnight on 30 June each year. Your principal place of residence - the home you live in - is exempt. Land tax applies to investment properties, vacant land, commercial land, and any other non-exempt holdings. If you own multiple investment properties in Queensland, all their unimproved land values are added together before the threshold is applied.
The 2025-26 rates and thresholds for individuals
| Metric | What it includes | Typical result |
|---|---|---|
| Below $600,000 | Individual tax-free threshold | Nil - no land tax |
| $600,000 to $999,999 | $500 plus 1.0% of amount over $600,000 | Starts at $500 |
| $1,000,000 to $2,999,999 | $4,500 plus 1.65% of amount over $1,000,000 | Mid bracket |
| $3,000,000 to $4,999,999 | $37,500 plus 1.25% of amount over $3,000,000 | Upper bracket |
| $5,000,000 to $9,999,999 | $62,500 plus 1.75% of amount over $5,000,000 | High value |
| $10,000,000 and above | $150,000 plus 2.25% of amount over $10,000,000 | Premium bracket |
Source: Queensland Revenue Office land tax rates for individuals, 2025-26. Companies and trusts face a lower threshold of $350,000 and higher marginal rates - a critical consideration for investors who hold property through a trust structure.
Real examples - one property and two properties
| Total taxable land value | $220,000 |
| Individual threshold | $600,000 |
| Amount above threshold | $0 |
| Land tax payable | $0 |
A single Brisbane unit will typically sit well below the individual $600,000 threshold on its own. The risk for first-time investors is not usually the first property - it is the second and third. When you add the unimproved values of multiple properties together, the threshold can be crossed relatively quickly as your portfolio grows.
| Property 1 - unit in Chermside (unimproved land value) | $280,000 |
| Property 2 - house in Springwood (unimproved land value) | $420,000 |
| Combined taxable land value | $700,000 |
| Less individual threshold | -$600,000 |
| Taxable amount | $100,000 |
| Land tax payable: $500 + (1.0% x $100,000) | $1,500/year |
Two properties that each sit comfortably below the $600,000 threshold on their own can combine to trigger a land tax liability. Neither property at $280,000 nor $420,000 individually crosses the threshold - but together at $700,000 they do. Always model land tax on your combined portfolio, not property by property.
The trust threshold trap
One of the most expensive mistakes investors make is buying property in a family trust without understanding that trusts face a significantly lower land tax threshold. While an individual is exempt below $600,000, a company or trust is liable for land tax once the taxable land value exceeds $350,000 - and the rates at each bracket are also higher.
| Metric | What it includes | Typical result |
|---|---|---|
| Individual | Most favourable structure for land tax | $600,000 threshold |
| Company | Lower threshold, higher rates than individual | $350,000 threshold |
| Trust (family/discretionary) | Same as company - significantly lower threshold | $350,000 threshold |
| Self-managed super fund (SMSF) | Same as company and trust threshold | $350,000 threshold |
For a single Brisbane investment property with an unimproved land value of $380,000, an individual pays zero land tax. The same property held in a trust is $30,000 above the trust threshold and immediately attracts a land tax bill. This is a compelling reason to seek advice on ownership structure before purchase - changing structures after settlement can trigger significant costs.
The controversial interstate rule
In 2022, Queensland announced a proposal to aggregate interstate landholdings when calculating Queensland land tax - meaning an investor who owned property in both Sydney and Brisbane would have faced a higher Queensland tax bill based on their total Australia-wide land value. This proposal generated intense backlash from investors and the property industry and was officially scrapped in 2023. Queensland currently assesses land tax on Queensland land only. Interstate land is assessed separately by each relevant state.
Is land tax deductible
Yes. Land tax paid on investment properties is generally deductible as a holding cost against your rental income, in the same way as council rates, insurance, and property management fees. This reduces the effective cost of the liability - at the 34.5% tax bracket, a $1,500 land tax bill costs approximately $983 after tax. Always confirm with your accountant that land tax on your specific property qualifies as deductible in your individual circumstances.
The Queensland Valuer-General issues a Land Valuation Notice each year for taxable land. You can also access your land valuation through the Queensland Globe or your council rates notice. The unimproved land value on this notice is the figure the QRO uses to calculate your land tax - not the market value of the property. If you believe your valuation is too high, you have a right to object within 60 days of the notice being issued.
Comparing Queensland to other states - why QLD is still investor-friendly
| Metric | What it includes | Typical result |
|---|---|---|
| Queensland | Reversed interstate aggregation proposal in 2023 | $600,000 individual threshold |
| New South Wales | Higher threshold but lower rates | $1,075,000 threshold |
| Victoria | Almost every investor pays land tax - highest effective burden | $50,000 threshold |
| South Australia | Moderate threshold | $763,000 threshold |
| Western Australia | Lower threshold, progressive rates | $300,000 threshold |
| Northern Territory | Only jurisdiction with no land tax | No land tax |
Queensland's $600,000 individual threshold remains one of the more generous in Australia - particularly compared to Victoria's $50,000, which effectively taxes virtually every investment property in the state. This is one of the structural reasons Queensland continues to attract interstate investors, particularly from Victoria and New South Wales, where land tax is a more significant ongoing burden.
This article is general information only and does not constitute financial, tax, or legal advice. Land tax rates and thresholds sourced from the Queensland Revenue Office (2025-26) via Propboss, AusTax Tools, Property Tax Tools, and LJ Hooker (November 2025). Always confirm your land tax liability with the Queensland Revenue Office estimator at qro.qld.gov.au or a registered tax agent. Rules for companies and trusts differ - seek specialist advice before choosing an ownership structure.
General information only. This article does not constitute financial, legal, or investment advice. Always consult a licensed financial adviser or mortgage broker before making investment decisions.
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