What Are the Current Land Tax Thresholds in Queensland?

Land tax can be a confusing subject for people who own property in Queensland, especially when the bill comes as a surprise. 

One of the questions property owner clients ask us the most is: What are the current land tax thresholds in Queensland? The answer will affect their investments and annual cash flow. 

Have a look at the current thresholds, how land tax is assessed, and how factors such as ownership structure and aggregated land values can influence eligibility, then contact NPR Law to figure out how land tax applies to your property. 

What are the current land tax thresholds in Queensland?

Land tax in Queensland is administered by the Queensland Revenue Office (QRO). It is assessed annually on the total taxable value of freehold land you own in Queensland at midnight on 30 June each year.

As a general guide, the current land tax thresholds are:

• Individual property owners: Land tax generally applies when the total taxable value of land is $600,000 or more
• Companies, trustees and absentees: Land tax generally applies when the total taxable value of land is $350,000 or more. (Absentees are people who do not hold a permanent visa or do not live in Australia)

Once your total taxable land value exceeds the relevant threshold, land tax is calculated on a sliding scale based on the QRO rates.

Does land tax apply to everyone?

Many people assume land tax thresholds change depending on whether land is residential or commercial, but this is not the case. Others believe that land tax does not apply because they don’t live in Queensland, which is also incorrect. 

The key differences lie in exemptions and how the taxable value is determined.

Taxable vs exempt land

The most common exemption from land tax is the home exemption, which usually applies to your principal place of residence. If you own the home and live in it, its value is not included when calculating whether you exceed the threshold.

Other types of land may also be exempt depending on use, ownership, or statutory criteria. These exemptions are covered in more detail in our article on land tax exemptions.

How the taxable value is worked out

Land tax is calculated on the taxable value of land, which is based on valuations issued by the Valuer-General. Depending on the circumstances, the taxable value may be:

• The statutory land value, or
• An averaged value over multiple years, where applicable

Land tax is based on land valuations issued by the Valuer-General. You can learn more about how land is valued in Queensland, how changes in land value can affect land tax, and how taxable value is calculated by visiting the Queensland Revenue Office website. 

Examples of how QLD land tax thresholds apply

Land tax often catches investors by surprise because of aggregation. The QRO adds together the taxable value of all land you own in Queensland, including specific interests in jointly owned land.

Example 1: Residential investment property and vacant land

An individual owns:

• A residential investment property that the owner does not reside in, with a taxable land value of $420,000
• A vacant block with a taxable land value of $220,000

Although neither property exceeds the $600,000 threshold on its own, the combined taxable value is $640,000. As a result, land tax applies.

Example 2: Commercial land and joint ownership

An individual owns:

• Commercial land valued at $500,000
• A 50 per cent share in jointly owned land valued at $300,000

A jointly owned piece of land is worth $150,000 to each individual. As a result, the total taxable value becomes $650,000 when combined with the commercial land. The amount exceeds the individual threshold, triggering land tax.

Example 3: Trustee ownership

For example, a family trust may hold land with a taxable value of $380,000. While that figure would sit below the land tax threshold for an individual owner, trusts are assessed at a lower threshold of $350,000. Because of the ownership structure alone, land tax would apply in this scenario.

Examples like this highlight how ownership type and land value aggregation can significantly affect land tax outcomes, particularly for investors with multiple properties or a mix of individual, joint, and trust ownership.

To get a clearer picture of how land tax might apply to your properties, the Queensland Revenue Office provides online tools to help estimate potential liabilities. You can use the land tax calculator or explore the individual estimator help guide to understand how thresholds and taxable values work together.