Land Tax Victoria 2026-27: Rates, Thresholds and Budget Changes

The 2026-27 Victorian Budget was handed down on 5 May 2026. For property owners and investors, the headline on land tax is straightforward: the Budget announced no changes to land tax rates, thresholds or surcharges. Existing settings continue, including the COVID Debt Levy on landholdings (legislated to 30 June 2033) and the state-wide Vacant Residential Land Tax. New 2026-27 land valuations from the Valuer-General apply for assessments. Here is what the Budget Papers say, with citations to the source.

The headline: no land tax rate or threshold changes in the 2026-27 Budget

The 2026-27 Budget contains no new land tax measures. Rates, thresholds, surcharges and existing exemptions continue under settings already in law. The Budget also announces no changes to the Foreign Purchaser Additional Duty, the Absentee Owner Surcharge, the Vacant Residential Land Tax or the Windfall Gains Tax (BP5 Ch.4). For the specific 2026-27 land tax rate tables and thresholds applicable to your holdings, the authoritative source is the State Revenue Office at sro.vic.gov.au.

Land tax revenue forecast for 2026-27 and beyond

Land tax revenue is forecast at $6.5 billion in 2026-27, growing at an average of 5.0 per cent a year to $7.5 billion by 2029-30 (BP5 p.169). The Budget Papers attribute the projected growth to rising taxable land values, with residential values “expected to rebound” and the long run of strong industrial land value growth easing (BP5 p.175-176). The Budget does not announce any rate or threshold change as a driver of this forecast. For specific rates and thresholds, refer to the State Revenue Office.

The COVID Debt Levy on land holdings: continues to 30 June 2033

The COVID Debt Levy on landholdings continues unchanged. The Budget forecasts $1.2 billion in revenue from the levy in 2026-27, growing at an average of 4.9 per cent a year. The levy is legislated to apply until 30 June 2033 (BP5 p.175). The Budget does not announce any early end, extension, rate change or scope change. For a deeper look at how the levy interacts with the standard land tax assessment, see our COVID Debt Levy article.

Vacant Residential Land Tax: state-wide, holiday home exemption continues

The Vacant Residential Land Tax (VRLT) applies state-wide following the expansion that took effect from 2025. The 2026-27 Budget does not announce any new VRLT measures. The holiday home exemption continues, with forecast forgone revenue of $567 million in 2026-27 (BP5 p.196 and note (b) p.198). For background on how VRLT is assessed, the exemptions available, and the implications for holiday homes and second properties, see our Vacant Residential Land Tax deep-dive.

Absentee Owner Surcharge: no changes

The Absentee Owner Surcharge continues under existing settings. The Budget announces no new measures (BP5 Ch.4). The build-to-rent absentee owner surcharge exemption and the “significant economic contribution” exemption continue, with combined forecast forgone revenue of $386 million in 2026-27 (BP5 p.196). The Budget does not flag any review or sunset of these exemptions in the 2026-27 papers.

Federal Court class action update (FPAD and AOS pre-2018 only)

The Budget Papers note that a Federal Court class action against the Foreign Purchaser Additional Duty (FPAD) and Absentee Owner Surcharge (AOS) has been narrowed to pre-1 January 2018 revenue only, following an October 2025 High Court judgment. The Budget states the financial impact is unable to be quantified at this time (BP5 p.205). For context on FPAD as it applies to current transactions, see our Foreign Purchaser Additional Duty article.

New 2026-27 land valuations: Valuer-General Victoria

Land tax assessments for 2026-27 are based on Valuer-General Victoria valuations covering the period 1 January 2025 to 31 December 2025 (BP5 p.175). Annual valuations form the taxable base on which existing rates and thresholds are applied. The Budget Papers do not change the valuation methodology or the date of effect. Property owners receiving 2026-27 assessments will see them reflect the values set across that 12-month period.

What the new valuations reflect (residential rebound, industrial easing)

The Budget Papers state that residential land values are “expected to rebound” in the new valuations, while industrial land tax growth is easing after several years of strong growth. The industrial share of land tax has moved from 17.3 per cent in 2020 to 25.8 per cent in 2025 (BP5 p.176). The Budget does not attach any rate change to these movements. The effect on individual assessments will depend on the property’s site value as determined by the Valuer-General and the existing rate scale published by the State Revenue Office.

Frequently asked questions

Did land tax change in the Victorian Budget 2026? No. The 2026-27 Victorian Budget announced no new land tax measures. Rates, thresholds, surcharges and existing exemptions continue under settings already in law (BP5 Ch.4).

What is the new land tax rate in Victoria for 2026-27? The Budget did not announce any rate change. For the specific 2026-27 land tax rate scale and thresholds applicable to your holdings, refer to the State Revenue Office at sro.vic.gov.au.

When are new land valuations published in Victoria? The 2026-27 land tax assessments use Valuer-General Victoria valuations covering 1 January 2025 to 31 December 2025 (BP5 p.175). Valuations are issued annually.

Is the COVID Debt Levy on land ending soon? No. The COVID Debt Levy on landholdings is legislated to apply until 30 June 2033 (BP5 p.175). The 2026-27 Budget does not announce any change. See our COVID Debt Levy article for detail.

What is the Vacant Residential Land Tax? VRLT is a tax on residential land that has been vacant for more than six months in a calendar year. It applies state-wide following the 2025 expansion. The holiday home exemption continues. See our VRLT article for the rules and exemptions.

Need help with a property transaction?

Tick Box Conveyancing handles house conveyancing and commercial conveyancing across Victoria. If you are buying or selling a property and want to understand how current land tax settings, the COVID Debt Levy or VRLT might affect your settlement, contact us or get an instant quote. For the full Budget summary, see our Victorian Budget 2026-27 property guide.

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This article summarises the Victorian Budget 2026-27 as published on 5 May 2026. It is general information, not legal advice. For matters specific to your transaction, contact Tick Box Conveyancing.