Land tax is an annual cost that can catch Queensland property owners by surprise. It is based on the taxable value of land, rather than the purchase price of the property or the value of the buildings on it. The amount can change when you buy another property, change ownership structure, lose an exemption or become an absentee owner.
The date that matters is midnight on 30 June. If you own taxable Queensland land at that time and the combined value reaches the applicable threshold, the Queensland Revenue Office may issue an assessment.
Queensland land tax at a glance
- Individuals generally become liable when their total taxable Queensland land value reaches $600,000.
- Companies, trustees and absentee owners generally have a lower threshold of $350,000.
- Absentee individuals, foreign companies and trustees of foreign trusts may also face a 3% surcharge.
- Your principal place of residence may qualify for an exemption, but the conditions must be satisfied.
- Land owned solely and your share of jointly owned land are generally added together.
In this guide
- What Queensland land tax covers
- Current thresholds and owner types
- How taxable value and land tax are calculated
- Joint owners, apartments and units
- Common exemptions
- Buying, selling and the 30 June date
- Land tax clearance certificates
- Companies, trusts and foreign owners
- Commercial leases and land tax recovery
- Common land tax mistakes
- Frequently asked questions
What is land tax in Queensland?
Land tax is a Queensland state tax on freehold land owned at midnight on 30 June each year. It is separate from council rates, transfer duty, income tax and capital gains tax.
The tax is concerned with the land itself. A commercial building may sell for several million dollars, but its taxable land value can be much lower because buildings, fit-out and other improvements are not valued in the same way as the underlying land.
Queensland land tax can apply to:
- investment houses and units;
- vacant land;
- commercial and industrial property;
- retail premises;
- development sites;
- lots in community title or building unit schemes;
- land held by a company, trust or self-managed superannuation fund; and
- land held by an absentee or foreign owner.
Queensland Revenue Office generally adds together the taxable value of all relevant Queensland land held by the same owner. Looking at each property separately can therefore give a misleading result.
Queensland land tax thresholds
The threshold depends on the legal owner of the land. The following figures were current when this article was reviewed in July 2026.
| Owner type | General threshold | Points to check |
|---|---|---|
| Individual | $600,000 | Includes an individual’s share of jointly owned land. A home exemption may be available. |
| Trustee of a special disability trust | $600,000 | Generally assessed at individual rates. |
| Company or trustee | $350,000 | Includes trustees of ordinary trusts and superannuation funds. |
| Absentee individual | $350,000 | Absentee rates and an additional 3% surcharge may apply. |
| Foreign company or trustee of a foreign trust | $350,000 | Foreign land tax surcharge rules may apply in addition to ordinary company and trustee rates. |
Australian citizens and permanent visa holders are generally assessed as individuals even when living overseas. A foreign individual without a permanent visa may be treated as an absentee if they do not usually live in Australia. Residency and ownership classifications can turn on the facts, so overseas owners should confirm their position rather than relying on a visa label alone.
How is Queensland land tax calculated?
Queensland Revenue Office applies the relevant rate to the owner’s total taxable value at 30 June. For each parcel, the taxable value is generally the lower of:
- the statutory land value for the relevant financial year; and
- the averaged value, based on the current and previous two financial years.
Any approved exemption is taken into account before the applicable threshold and rate scale are applied.
Individual land tax rates
| Total taxable value | Rate |
|---|---|
| $0–$599,999 | No land tax |
| $600,000–$999,999 | $500 plus 1 cent for each $1 above $600,000 |
| $1,000,000–$2,999,999 | $4,500 plus 1.65 cents for each $1 above $1,000,000 |
| $3,000,000–$4,999,999 | $37,500 plus 1.25 cents for each $1 above $3,000,000 |
| $5,000,000–$9,999,999 | $62,500 plus 1.75 cents for each $1 above $5,000,000 |
| $10,000,000 or more | $150,000 plus 2.25 cents for each $1 above $10,000,000 |
A simple example
An individual owns two Queensland investment properties. Their taxable land values are $420,000 and $330,000. The combined taxable value is $750,000, even though neither property reaches the individual threshold on its own.
Using the individual rate scale, the estimated land tax would be:
$500 + 1 cent × $150,000 = $2,000.
This is only a simplified example. Exemptions, different ownership categories, foreign or absentee status and later reassessments can change the result. Use the Queensland Revenue Office land tax estimator for a current estimate.
Joint owners, apartments and units
Jointly owned land
If land is owned jointly, each owner is generally assessed on their proportionate share. That share is then added to any other Queensland land held by the same owner.
For example, a person who owns half of one investment property and owns another property in their sole name may have both interests included in the same individual assessment.
Apartments and townhouses
Owning a unit or townhouse usually includes an interest in the underlying land. The relevant land value may appear on the council rates notice. The owner’s lot entitlement or proportion can also be checked through the body corporate, sale contract or registered scheme documents.
A unit owner may therefore have a land tax liability even though they do not own a separate block of land.
Common Queensland land tax exemptions
An exemption removes eligible land, or part of its value, from the taxable total. Eligibility depends on the owner, the use of the land and the circumstances at 30 June.
Common exemptions and forms of relief include:
- land used as an individual owner’s principal place of residence;
- a transitional home in qualifying circumstances;
- eligible primary production land;
- land used by certain charitable or non-profit organisations;
- some retirement village, aged care and supported accommodation land; and
- other specific categories set out in the legislation.
Do not assume an exemption is automatic. An owner may need to apply, update QRO records or notify QRO when the use of the property changes. Renting out a former home, changing trustees or moving overseas can affect an existing exemption.
Buying or selling land close to 30 June
Timing matters because land tax is assessed by reference to ownership at midnight on 30 June. In an ordinary sale, the seller generally remains the owner until settlement. If a buyer takes possession before settlement, the buyer may be treated as the owner for land tax purposes.
Queensland Revenue Office does not automatically divide the annual assessment between buyer and seller. Any adjustment between the parties depends on the contract and the circumstances of the transaction.
Before signing a contract, check:
- whether settlement or possession will occur before or after 30 June;
- whether the seller has an existing land tax liability;
- how the contract deals with land tax adjustments;
- whether the buyer’s existing landholdings will be aggregated after settlement;
- whether the buyer is purchasing through a company, trust or foreign-controlled entity; and
- whether a land tax clearance certificate will be obtained.
A clause that looks routine can shift a substantial cost. Buyers and sellers should have the adjustment provisions checked before the contract becomes unconditional.
Why a land tax clearance certificate matters
Unpaid Queensland land tax is a first charge over the land. It can continue to affect the property after a transfer and takes priority over a mortgage, whether or not the charge appears on the title.
A land tax clearance search may produce:
- a clearance certificate confirming that the land will be clear of land tax at the anticipated date of possession;
- a liability advice showing current land tax payable;
- a garnishee notice for overdue land tax; or
- a combination of a liability advice and garnishee notice.
The certificate helps protect a buyer from being pursued for the seller’s unpaid land tax. If the possession or settlement date moves beyond 30 June, a fresh certificate may be needed.
Further information is available from the Queensland Revenue Office clearance certificate page.
Companies, trusts and foreign owners
Ownership structure affects much more than the name shown on the contract. A company or ordinary trustee generally has a $350,000 threshold, compared with $600,000 for an individual. Land held by a trustee is assessed separately from land held by the same person in their individual capacity.
A trust or company may still be the right structure for commercial, succession or asset-protection reasons. The lower land tax threshold and the effect of any foreign ownership should be priced into the decision before signing.
Absentee and foreign owner surcharge
An absentee individual may be subject to absentee rates and a 3% surcharge. Foreign companies and trustees of foreign trusts may also face a 3% foreign land tax surcharge in addition to the ordinary company and trustee rates.
Foreign status is not always obvious. Control, shareholder interests, trust interests, citizenship, permanent visa status and where an individual usually lives may all be relevant. Overseas buyers should review land tax alongside FIRB approval, Additional Foreign Acquirer Duty and the proposed ownership structure.
Related service: FIRB and foreign investment advice.
Can a landlord recover land tax from a tenant?
The answer depends on the type of lease.
Under a non-retail commercial lease, the lease may require the tenant to contribute to land tax as an outgoing. The wording, calculation method, disclosure documents and any negotiated cap or exclusion need to be checked.
Queensland retail shop leases are different. Under the Retail Shop Leases Act 1994, land tax is excluded from the lessor’s recoverable outgoings, and a provision requiring the retail tenant to pay or reimburse the lessor’s land tax is void.
Landlords should avoid using a generic outgoings clause across every property. Tenants should review the proposed outgoings before signing, particularly where the lease describes taxes or statutory charges in broad terms.
Related services: commercial lease review and commercial property advice.
Land tax and property development
A development site may be held for years before construction, subdivision or sale. Land tax during that holding period should be included in the project feasibility from the start.
The risk is greater where a developer:
- holds several Queensland sites;
- uses companies or trusts;
- has foreign ownership or control;
- allows settlement timing to cross 30 June;
- assumes an exemption will apply; or
- expects land tax to be recoverable from future tenants.
Restructuring after acquisition can trigger transfer duty, capital gains tax, finance and trust deed consequences. Structure and timing should be considered before the acquisition contract is signed.
Common land tax mistakes
- Using the purchase price. Land tax is based on taxable land value, not the total market value of the property and improvements.
- Looking at one property at a time. QRO generally aggregates land held by the same owner.
- Missing jointly owned interests. A fractional share can still be added to an owner’s other landholdings.
- Choosing a trust or company without modelling annual land tax. These owners generally have a lower threshold.
- Ignoring 30 June. A small change to settlement or possession timing can affect who is assessed.
- Assuming the home exemption continues. Renting, moving, changing use or changing ownership can affect eligibility.
- Passing land tax to a retail tenant. A retail shop lease clause requiring reimbursement of the lessor’s land tax is void.
- Skipping the clearance certificate. Unpaid land tax can remain a first charge over the property.
Practical checklist before buying Queensland property
| Check | Why it matters |
|---|---|
| Current taxable land value | This is the starting point for the assessment, rather than the purchase price. |
| Existing Queensland landholdings | The new property may push the owner over the threshold once values are aggregated. |
| Ownership structure | Individual, company, trustee and foreign owner thresholds and rates differ. |
| Exemption status | An exemption can materially change the taxable total but must meet its conditions. |
| Settlement and possession dates | Ownership at midnight on 30 June determines the annual assessment. |
| Contract adjustment clause | The contract controls how the cost is dealt with between buyer and seller. |
| Clearance certificate | It helps protect the buyer from the seller’s unpaid land tax. |
| Lease outgoings | Recovery depends on the lease and whether the premises fall under retail leasing legislation. |
How Ensure Legal can assist
Land tax often sits at the point where the contract, ownership structure and tax position meet. Ensure Legal assists with the legal side of Queensland property transactions, including:
- reviewing purchase and sale contracts;
- checking land tax adjustment clauses;
- advising on settlement and possession timing;
- reviewing commercial lease outgoings;
- preparing transaction-specific special conditions;
- assisting with land tax clearance issues at settlement; and
- working with accountants and tax advisers where specialist tax advice is required.
Contact Ensure Legal before signing if land tax, ownership structure or settlement timing could affect your transaction.
Queensland land tax: frequently asked questions
Is land tax the same as council rates?
No. Council rates are charged by local government. Land tax is an annual state tax administered by Queensland Revenue Office. An owner may need to pay both.
Do I pay land tax on my home?
An individual’s principal place of residence may qualify for a home exemption. The owner, use of the property and circumstances at 30 June must meet the eligibility requirements.
I only own one investment property. Can land tax still apply?
Yes. The number of properties is not decisive. Liability depends on the taxable value, owner type and available exemptions.
Are buildings included in the land tax value?
Land tax is generally based on the taxable value of the underlying land, rather than the market value of the buildings and improvements.
Does jointly owned land count?
Yes. An owner’s proportionate share of jointly owned land is generally combined with their other Queensland landholdings.
Do companies and trusts pay land tax differently?
Yes. Companies and ordinary trustees generally have a $350,000 threshold and a different rate scale. A trustee of a special disability trust is generally assessed at individual rates.
Do foreign owners pay an additional surcharge?
Absentee individuals, foreign companies and trustees of foreign trusts may be subject to a 3% surcharge in addition to ordinary land tax. The owner’s precise classification should be checked.
Can a commercial landlord pass land tax to the tenant?
A non-retail commercial lease may allow recovery if it is properly drafted. For a Queensland retail shop lease, a clause requiring the tenant to pay or reimburse the lessor’s land tax is void.
Why do buyers need a land tax clearance certificate?
Unpaid land tax can remain a first charge over the land. A clearance certificate helps protect the buyer from recovery action for the seller’s unpaid liability.
Last reviewed: July 2026. Thresholds, rates, exemptions and surcharge rules can change. Current figures should be checked with the Queensland Revenue Office.
Disclaimer: This article provides general information only and is not legal, tax or financial advice. Advice should be obtained for the proposed ownership structure, contract and individual circumstances before a transaction proceeds.
For advice on how land tax affects a property acquisition or holding structure, contact our commercial property legal services.
