Land Tax Calculator VIC 2025-26 (with Absentee & VRLT)

What this calculator works out

This calculator estimates the annual Victorian land tax the State Revenue Office (SRO) will assess against the land you owned at midnight on 31 December. It handles the four moving parts that catch most Victorian investors out:

1. The general $50,000 threshold (lowered from $300,000 under the COVID Debt Repayment Plan), with the seven-band marginal scale that runs from a flat $500 in band one through to $31,650 + 2.65% above $3,000,000.
2. The lower $25,000 trust threshold and the 0.375% trust surcharge that stacks on top of base land tax.
3. The 4% absentee owner surcharge for foreign individuals, foreign corporations and absentee trusts.
4. Vacant Residential Land Tax (VRLT) — a separate annual tax on residential land left vacant for more than six months in the prior calendar year, charged at 1% in year one, 2% in year two and 3% from year three onwards on the capital improved value.

The figure it returns is the indicative annual land tax bill plus VRLT where toggled — not Victorian transfer duty (paid once at purchase, see our VIC stamp duty calculator) and not council rates (a separate bill from your local council).

The formula and where the rates come from

The thresholds and rates used here are the ones the SRO publishes on its Land tax current rates, Trust surcharge rates, Absentee owner surcharge and Vacant Residential Land Tax pages. For the 2025-26 land tax year, the general scale is:

Total taxable site value	Land tax payable
$0 – $49,999	nil
$50,000 – $99,999	$500
$100,000 – $299,999	$975
$300,000 – $599,999	$1,350 + 0.3% of the value above $300,000
$600,000 – $999,999	$2,250 + 0.6% of the value above $600,000
$1,000,000 – $1,799,999	$4,650 + 0.9% of the value above $1,000,000
$1,800,000 – $2,999,999	$11,850 + 1.65% of the value above $1,800,000
$3,000,000+	$31,650 + 2.65% of the value above $3,000,000

For trusts holding Victorian land, the trust threshold drops to $25,000 and a 0.375% surcharge applies on the slice between $25,000 and $3,000,000, on top of the base land tax above. For absentee owners, the 4% absentee surcharge runs on the same taxable site value as the base land tax. VRLT runs separately at 1% / 2% / 3% of capital improved value depending on how many consecutive years the land has been vacant.

Land tax is calculated on the site value — the unimproved value set annually by the Valuer-General Victoria — not the contract price you paid. The Australian Bureau of Statistics figures for Victorian investor housing show roughly one in four Victorian dwellings sit in the residential investment pool, so the threshold reduction from $300,000 to $50,000 has materially widened who is in the net. ASIC's MoneySmart guidance on investor property is a good general primer if you are weighing whether the holding still makes sense after the surcharge stack.

How to read the inputs

• Land tax year — Liability is set on 31 December of the previous calendar year. The 2026 land tax year is assessed on land held at midnight on 31 December 2025.
• Property use — Choose PPR if the property is your main home; investment if it is rented out, vacant or a holiday house; mixed if part of the property is your home and part is income-producing (in that case enter only the taxable portion of the site value below).
• Total VIC site value — Use the Valuer-General Victoria site value, found on your council valuation notice or on the SRO portal. Do not enter the contract price.
• Ownership structure — Pick trust for a trustee owner; the calculator then layers on the 0.375% trust surcharge.
• Absentee owner — Tick this if any owner is a foreign individual, foreign corporation or absentee trust under Victorian law.
• VRLT applies — Tick this if the residential land was vacant for more than six months in the prior calendar year. Enter the capital improved value (council valuation) and the consecutive year of vacancy.

Worked examples

1. Melbourne investor with one apartment. A Victorian resident individual holds a single $750,000 inner-Melbourne apartment with a Valuer-General site value of $400,000. Falls in band b3 ($300,000–$599,999): base = $1,350 + 0.3% × ($400,000 − $300,000) = $1,350 + $300 = $1,650 per year. No trust or absentee surcharge. PPR is not claimed because the unit is rented out.

2. Foreign individual with two Geelong properties. An overseas owner holds two Geelong investment houses with combined site value $700,000. The SRO aggregates the values, so band b4 ($600,000–$999,999) applies: base = $2,250 + 0.6% × ($700,000 − $600,000) = $2,250 + $600 = $2,850. Absentee surcharge = 4% × $700,000 = $28,000. Total land tax = $30,850 per year, dominated by the absentee surcharge — a $25-30k step-up over what an Australian-resident individual would pay on the same land.

3. Family trust holding a Mornington Peninsula holiday home. A discretionary trust holds a Mornington Peninsula holiday home with a site value of $450,000 and a capital improved value of $900,000. The home was vacant for seven months last calendar year, triggering VRLT in year one. Base land tax (band b3) = $1,350 + 0.3% × ($450,000 − $300,000) = $1,350 + $450 = $1,800. Trust surcharge = 0.375% × ($450,000 − $25,000) = $1,593.75. VRLT year one = 1% × $900,000 = $9,000. Total annual cost = $1,800 + $1,594 + $9,000 = about $12,394 per year — and if it stays vacant, year two doubles VRLT to 2% × $900,000 = $18,000.

Common pitfalls

• Land tax is annual, not one-off. Unlike Victorian transfer duty, this is an every-year bill — model it before you buy, not after.
• The site value is what counts, not the price you paid. Many investors plug the contract price in and overstate their bill by 2–3x. Use the Valuer-General site value.
• Threshold drop is recent. Until 2023 the general threshold was $300,000. Holdings that used to be below the threshold are now firmly inside the net at $50,000.
• Absentee status is sticky. The 4% surcharge applies to the same site value as base land tax even when the underlying base is small or the PPR exemption removes it. The bill on a vacant residential lot can be material.
• VRLT is on capital improved value, not site value. A modest piece of land with a $1.5M home pays VRLT on $1.5M, not on the site value used for ordinary land tax. The two taxes use different bases.
• Foreign trust trap. A discretionary trust that doesn't explicitly exclude foreign beneficiaries can be treated as an absentee trust, attracting the 4% surcharge on top of the trust surcharge. Check the trust deed.
• The 31 December snapshot is unforgiving. Settling a sale on 2 January transfers the whole next year's bill to you. A few days at the end of December can swing thousands.

When to talk to a professional

This calculator gives a general estimate based on public SRO data. The typical land tax for the scenarios above is the figure shown, but binding assessments — especially anything involving a trust, deceased estate, primary production exemption, partial PPR use or absentee determination — should go through a Victorian-registered tax agent or property lawyer. For your exact assessment, contact the State Revenue Office Victoria. Nothing on this page is personal financial, tax or legal advice.

Related calculators

• NSW Land Tax Calculator — compare the Victorian regime against the NSW general / premium thresholds and the 5% foreign owner surcharge.
• VIC Stamp Duty Calculator — the one-off Victorian transfer duty paid at settlement, including foreign purchaser additional duty.
• Negative Gearing Calculator — model how land tax and other holding costs flow through to your investment property's cash flow and tax position.
• Property Depreciation Calculator — work out Division 40 plant and Division 43 capital works deductions to offset the land tax bite.

Sources:

• State Revenue Office Victoria — Land tax current rates
• State Revenue Office Victoria — Land tax calculator
• State Revenue Office Victoria — Vacant Residential Land Tax
• State Revenue Office Victoria — Absentee owner surcharge
• State Revenue Office Victoria — Trust surcharge rates
• Australian Bureau of Statistics — Housing occupancy and costs (Victoria)
• ASIC MoneySmart — Investing in property