New land tax thresholds for the upcoming 2026-27 financial year have been formally announced, providing relief for owners of investment, commercial and holiday properties. The changes were detailed in a notice from the Commissioner of State Revenue, published in the Tasmanian Government Gazette on Wednesday, 24 June 2026.
According to the gazetted notice, the tax-free threshold for land value has been raised. From 1 July 2026, land valued up to $124,999 will not be subject to land tax.
For properties with a land value between $125,000 and $499,999, the new annual tax will be $50 plus 0.45 per cent of the value exceeding $125,000, the notice states. Properties valued at $500,000 or more will incur a tax of $1,737.50 plus 1.5 per cent of the value above the half-million-dollar mark.
The State Revenue Office of Tasmania clarifies that land tax is an annual charge on the value of land, not including buildings or structures. It does not apply to a person’s main home, known as their principal place of residence, or to land used for primary production. The tax primarily affects owners of rental properties, holiday homes or shacks, vacant land, and commercial properties.
The adjustment delivers on an earlier commitment from the Liberal state government to provide land tax relief. A statement from the Premier’s office before the last election promised to raise the minimum threshold to $125,000 to reduce the burden on “mum and dad investors, and the family shack.” The government estimated at the time that the change would mean around 4,400 landowners would no longer receive a tax bill.
The new thresholds represent a significant increase from previous years. As recently as 2022, the tax-free threshold was lifted to $100,000, with the top threshold set at $500,000.
The 2026-27 State Budget, delivered in May, stated that no new taxes or rate increases were being introduced, with Treasurer Eric Abetz focusing on cost-of-living support and health funding. The land tax adjustment is considered a follow-through on existing government policy rather than a new budget measure.
Property owners affected by the changes can expect to see the new rates reflected in their land tax assessment notices for the 2026-27 financial year. The Tasmanian Government Gazette is the state’s official publication for formal public and government notices.