Navigating land tax is one of the more complex aspects of property investing, as each Australian State and Territory has a different method for calculating liabilities, thresholds, and exemptions.
Tasmania has a wide appeal to investors due to its affordability compared to the mainland, potential for capital growth and a desirable lifestyle.
While it is easy to be swept up in the excitement of buying rental property and finding a tenant, it is crucial to stay across your financial obligations beyond maintenance and repairs. Land tax is an annual state-imposed charge on the value of land, excluding any structures, so it is important to take the time to understand for effective planning of your portfolio.
This guide explains who pays land tax, who’s exempt, how it’s calculated, when to pay and importantly, how to effectively plan.
Who pays land tax in TAS?
The good news is that not all land is subject to this tax, with several exemptions. It is not payable on:
- Principal place of residence
- Residences under construction
- Moving from one residence to another
An owner-occupier moving into aged care is also exempt from land tax if the property is part of a deceased estate. Land used for primary production is also exempt from land tax.
Concessions may be available for not-for-profit organisations, qualifying home businesses, new homes used for long-term rental, religious groups, special disability trusts and eligible clubs.
Short-term visitor accommodation converted to a long-term lease may be eligible for a one-year exemption from land tax.
Who is exempt from paying land tax in TAS?
Land tax is calculated on the unimproved value of your land, without any buildings, each year.
2025 – 2026 Land Tax Thresholds
- Value $0 to $124,999.99 – nil
- Value $125,000 to $499,999.99 - $50 plus 0.45 per cent of value above $125,000
- Value $500,000 and above - $1737.50 plus 1.5 per cent above $500,000
You can work out your land tax using the State Office of Revenue Tasmania’s calculator here.
How is land tax calculated in TAS?
Land tax is calculated on the unimproved value of your land, without any buildings, each year.
2025 – 2026 Land Tax Thresholds
- Value $0 to $124,999.99 – nil
- Value $125,000 to $499,999.99 - $50 plus 0.45 per cent of value above $125,000
- Value $500,000 and above - $1737.50 plus 1.5 per cent above $500,000
You can work out your land tax using the State Office of Revenue Tasmania’s calculator here.
When do you pay lax tax in TAS?
Land tax is payable to the Commissioner of State Revenue by the registered owners of the property.
You should receive a notice of assessment with your account number, the amount of your land tax and the due date. It can be paid online, over the phone or in person at a service centre.
If you are struggling to meet your requirements, a payment plan may be able to be set up with the State Revenue Office.
It is important to check your assessment carefully – if properties you no longer own are listed or new ones are missing, contact the State Revenue Office immediately. An independent review can be carried out. Any objections must be lodged within 60 days of the notice of assessment or notification of a decision of the Commissioner.
LJ Hooker is here to help
When you are ready to start or add to your property portfolio in Tasmania, be sure to contact your nearest LJ Hooker agent. They are specialists who are experienced in helping people looking to get started in investing and can access property databases and valuation tools.
Importantly, they understand the Tasmanian investment market and can also arrange for an experienced property manager to take care of the property. This reduces the burden on you as a landlord and will allow you to focus on growing your portfolio. Don’t forget to be a tax-smart investor by getting all your documentation in order from the start. This includes knowing what expenses can be claimed, your tax obligations and declaring all rental-related income in your annual return.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
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