Land tax isn't based on what you paid for the property or what you owe the bank. It's based on taxable land value. Check it before you decide what a rental will cost to hold.
For an ordinary company or trustee, it's generally $350k. That's land value, not the price you pay for the house or the size of your mortgage.
Own several Queensland properties? Don't work each out as if it were your only one. Your total taxable holdings matter.
What triggers land tax?
The Queensland Revenue Office (QRO) looks at ownership at midnight on 30 June. An individual's total taxable freehold land includes their share of jointly owned land.
Keep a simple list for every Queensland property: owner, ownership share, taxable land value and any exemption. Keep trust-held land separate from land you hold personally.
Use the taxable land value, not the agent's price guide. A purchase price includes the house and other improvements.
QRO uses statutory land values and averaging to work out the taxable amount. Your mortgage balance doesn't reduce that value.
An eligible home exemption can reduce the amount assessed. Ask your accountant to check the valuation, your other holdings and exemptions together.
Trusts and other ownership types
Buying through a family trust can produce a different result from buying in your own name, even when the property is the same.
| Owner at ordinary rates | Taxable land threshold |
|---|---|
| Individual | $600k |
| Company or ordinary trustee | $350k |
Trust-held land is usually assessed separately from your personal land. Some trusts are added together, so have yours checked. Special disability trusts use individual rates.
Living in a trust-owned home doesn't automatically give you the same home exemption as personal ownership. Trustees have specific conditions to meet.
Have this comparison done before signing. Changing the owner later can involve legal work, loan changes and further tax consequences.
Owners overseas
Foreign companies and foreign trusts can face a surcharge of (taxable value less $350k) multiplied by 3%, on top of the applicable land tax.
Absentees have a separate rate scale and the same surcharge formula.
An Australian citizen doesn't become an absentee just by living overseas.
Ask your accountant to confirm the owner category, exemptions and surcharge before you use an estimate. Tell them before moving overseas, renting out your home or changing ownership.
Those changes can affect the assessment.
Selling halfway through the year
Selling partway through the year doesn't mean QRO will reduce the seller's liability for the months they no longer own the property. How land tax is dealt with at settlement is a separate question for your conveyancer.
Unpaid land tax can also affect the buyer. Ask your conveyancer about the clearance and settlement checks before completion, not after you've received the keys.
When the assessment arrives, use the due date and payment details on the notice. QRO lists BPAY and eligible card payments among its options.
If you can't pay, contact QRO rather than leaving the bill unpaid.
Your holding-cost checklist
A rental that covers its loan repayment can still need regular top-ups. Before you make an offer, check you've allowed for:
- Land tax based on the proposed owner, other holdings and exemptions.
- Council rates, insurance and maintenance.
- Loan repayments and property management.
- Time without rent and a cash buffer for repairs.
Your accountant can estimate the land tax. Your conveyancer can explain the contract and settlement treatment.
For the borrowing side, our investment property loan guide explains deposits, rental income and equity. Equity is the property value less the debt secured against it.
Review the estimate when values, holdings, ownership or property use change. Keep the assessment with your records and put money aside for the annual bill.
What could an $800k taxable land value cost?
Suppose an individual has $800k of total taxable land after exemptions and ordinary individual rates apply. QRO's band is $500 plus 1% of the amount over $600k.
| Calculation for this hypothetical owner | Amount |
|---|---|
| Total taxable land | $800k |
| Less threshold | $600k |
| Amount above threshold | $200k |
| 1% of that amount | $2,000 |
| Fixed amount for this band | $500 |
| Annual land tax | $2,500 |
That's about $208.33 a month to set aside. Add it to any cash you're already putting towards the property. A possible income-tax deduction won't pay the notice when it falls due.
This example excludes special ownership circumstances and surcharges. Check the live estimator and your assessment rather than using it as a quote.
Questions about land tax in Queensland
Broker check: budget for annual land tax
Bring your accountant's land-tax estimate to our Brisbane mortgage brokers before setting your purchase limit. We can include that holding cost in the loan budget, rather than leaving it as a surprise after settlement.
Check the budget before changing the owner
A trust or company can change land-tax treatment, borrowing options and the cost of setting up the purchase. A lower estimate in one column isn't enough to choose the owner. Ask your accountant and solicitor to compare the whole arrangement before the contract is signed.
For the loan assessment, bring the proposed ownership structure, your other property debts and the accountant's holding-cost estimate. We can check how the ongoing costs fit alongside repayments.
Call Hunter Galloway on 1300 088 065 or request a free assessment for the borrowing side. We don't calculate your land-tax liability or replace your accountant's advice.
Related guides: investment property loan guide · negative gearing guide
Experience and sources
How this guide was checked
Reviewed 3 November 2026 by Nathan Vecchio.
Information checked against the sources listed below.
Hunter Galloway Finance Pty Ltd is Credit Representative 476903, authorised under Australian Credit Licence 389328.
Sources
General information only, not personal financial, tax or legal advice. Lender policies and government rules change, so check current criteria before you apply.