If you own an investment property, vacant land or commercial property in Western Australia, land tax can become a meaningful annual holding cost especially once you own multiple properties.
The good news is that the basic system is easier to understand than it first appears.
This guide explains the WA land tax threshold, current rates, how property values are aggregated, common exemptions, payment options and what property investors should watch when buying or selling land.
What is land tax in WA?
Land tax is an annual state tax on taxable land in Western Australia.
It is based on the aggregated taxable value of land you own, rather than the market value of the buildings on that land. The Valuer-General determines the unimproved value used for the assessment. RevenueWA then calculates and collects the tax.
Your land tax position is determined using the land you owned at midnight on 30 June immediately before the relevant assessment year.
For example, land tax for the 2026–27 assessment year is based on the land you owned at midnight on 30 June 2026.
Land tax is separate from:
- council rates
- water charges
- income tax
- capital gains tax.
Who pays land tax in WA?
You generally pay land tax when your aggregated taxable land value exceeds $300,000, unless an exemption or concession applies.
The most common taxable properties are:
- investment properties
- vacant land
- holiday homes
- commercial property
- land held for development.
Your principal residence can qualify for a land tax exemption where the relevant requirements are met.
One important point for property investors is that RevenueWA generally aggregates land held in the same ownership capacity.
So if you own two investment properties personally, their taxable land values will generally be combined before the threshold and rates are applied.
However, land owned in a different capacity — for example, jointly, through a company or through a trust — is not automatically combined with your individually owned land. The precise treatment depends on the ownership circumstances.
WA Land Tax Threshold and Rates for 2026–27
The general WA land tax scale currently operates as follows:
| Aggregated taxable land value | Land tax |
|---|---|
| $0 – $300,000 | Nil |
| $300,001 – $420,000 | $300 |
| $420,001 – $1,000,000 | $300 + 0.25% of excess over $420,000 |
| $1,000,001 – $1,800,000 | $1,750 + 0.90% of excess over $1,000,000 |
| $1,800,001 – $5,000,000 | $8,950 + 1.80% of excess over $1,800,000 |
| $5,000,001 – $11,000,000 | $66,550 + 2.00% of excess over $5,000,000 |
| Above $11,000,000 | $186,550 + 2.67% of excess over $11,000,000 |
RevenueWA confirms the current $300,000 tax-free threshold and these progressive rates.
Example: $700,000 of taxable land
Suppose your total taxable land value is $700,000.
Your calculation falls within the $420,001–$1,000,000 band:
$300 + 0.25% × ($700,000 − $420,000)
That produces $1,000 in land tax before considering any other applicable tax such as the Metropolitan Region Improvement Tax.
What is the Metropolitan Region Improvement Tax?
Perth property investors also need to be aware of the Metropolitan Region Improvement Tax (MRIT).
MRIT can apply in addition to land tax to taxable land in the Perth metropolitan region. The current rate is 0.14% of the amount above $300,000.
That means a Perth property investor should not necessarily assume that the land-tax figure alone represents the entire state property-tax liability.
Our land tax calculator can give you an initial estimate based on your total taxable land value.
How is land tax calculated when you own multiple properties?
RevenueWA generally looks at the combined taxable value of your non-exempt land held in the same ownership.
For example, suppose you personally own:
- Property A: taxable land value of $220,000
- Property B: taxable land value of $280,000
Your combined taxable land value is $500,000, not two separate $220,000 and $280,000 assessments.
The progressive rates are then applied to the aggregated amount.
This is why land tax should form part of your investment-property calculations before you buy the next property, rather than being treated as an unexpected bill at tax time.
Our investment property calculator can help you model rent, expenses, cash flow and land tax alongside the other costs of holding an investment property.
Land Tax Exemptions in WA
Not every property is taxable. Some of the more important WA exemptions and concessions include:
1. Principal residence
Your primary residence may qualify for an exemption where the statutory requirements are met.
For the standard private-residence exemption, the property generally needs to be your primary residence and meet the ownership and property requirements applying at 30 June. RevenueWA’s current guidance also covers specific situations involving construction, refurbishment and moving between residences.
2. Primary production land
Land used for qualifying primary production activities may be exempt, subject to the relevant requirements.
3. Charitable, religious and other exempt organisations
Specific exemptions can apply to land owned and used by eligible charitable, religious, educational, health and other organisations for qualifying purposes.
4. Retirement villages and aged-care property
Special exemptions and concessions can apply to qualifying retirement villages and residential aged-care facilities.
5. New or renovated homes
Specific construction and refurbishment exemptions can apply where the statutory requirements are met. These rules have changed over time, so property owners should check the current RevenueWA requirements rather than relying on older articles.
The important point is that there is no single blanket application deadline that applies to every land-tax exemption. Some exemptions are recognised through the assessment process, while others require an application and supporting evidence.
RevenueWA publishes separate forms and guidance for the different exemption categories.
What happens if you buy or sell property around 30 June?
The 30 June ownership date is critical.
RevenueWA bases the assessment on the land you owned at midnight on 30 June immediately before the relevant assessment year.
If you buy a property after 30 June, that purchase generally does not affect the assessment based on the preceding 30 June.
Conversely, if you owned a property at midnight on 30 June and sell it afterwards, you remain liable for the land tax assessment based on that ownership position.
There is generally no simple daily pro-rata adjustment to the state’s annual land-tax assessment.
When will RevenueWA send your land-tax assessment?
RevenueWA generally issues land-tax Notices of Assessment between September and January.
If you don’t receive an assessment, don’t automatically assume there is no liability.
Changes in ownership, exemptions, mailing details and property holdings can all affect what RevenueWA has recorded.
How do you pay land tax in WA?
Your Notice of Assessment tells you the payment dates and options available to you.
RevenueWA currently provides options to:
- pay the full amount in one payment
- pay in two instalments
- pay in three instalments.
Paying the full assessment by the first instalment date attracts a 3% discount. There is no additional charge or discount for the standard two- or three-payment options, subject to the conditions RevenueWA sets out.
RevenueWA also allows approved payment arrangements in some circumstances.
Don’t rely on an old “35-day” rule you may see on another website. Use the due dates on your current Notice of Assessment.
What if you think your land-tax assessment is wrong?
If you believe RevenueWA has assessed your land tax incorrectly, you can object to the assessment.
Under WA’s taxation administration legislation, an objection to an official assessment generally needs to be lodged within 60 days after the assessment notice is issued, subject to the applicable statutory rules.
There is a separate process if your concern is the land valuation itself rather than the tax calculation. Valuation objections generally go through the Valuer-General process and also have strict 60-day timeframes.
That distinction matters.
If you think RevenueWA has applied the wrong exemption or calculation, that’s one issue.
If you think the underlying unimproved value of the land is wrong, that’s a valuation issue.
Is WA land tax tax-deductible?
If you own a rental or other income-producing property, land tax can generally be deductible for Australian income-tax purposes.
However, the timing is important.
The ATO explains that the timing of a land-tax deduction depends on when the liability arises under the relevant state legislation. It isn’t automatically the year in which you physically pay the assessment. The ATO also confirms that land tax can be an immediately deductible rental expense where the relevant requirements are met.
This is one reason your property tax records should include your RevenueWA assessments and the dates to which those liabilities relate.
Does the ownership structure affect land tax?
It can.
RevenueWA generally assesses land according to ownership capacity. Land owned personally is not automatically combined with land held jointly, through a company or through a trust.
But that doesn’t mean a trust automatically reduces land tax.
The right structure depends on the full picture, including:
- how many properties you own
- who owns them
- whether properties are held jointly
- whether there are trusts or companies involved
- available exemptions
- income-tax consequences
- asset-protection considerations
- eventual capital gains tax.
That’s why land-tax planning should happen before the property purchase, not after settlement. For a broader review, see our property tax accounting service.
Land Tax Should Be Part of Your Investment Numbers
For a property investor, land tax is not just another tax bill to deal with once RevenueWA sends the notice.
It belongs in your property cash-flow model from the start.
Before buying another property, consider:
Purchase price + finance costs + council rates + insurance + management + maintenance + land tax + other holding costs.
A property that looks attractive on gross rental yield can look very different once all of its annual holding costs are included.
Our investment property calculator can help you model the cash-flow side, while our property tax accounting team can review the tax treatment, depreciation, ownership structure and broader property strategy.
For investors approaching the end of the financial year, tax planning can also help identify decisions that should be made before 30 June rather than after it.
Final takeaway
The WA land-tax system is based on a simple principle:
What taxable land did you own at midnight on 30 June, and what was its aggregated taxable value?
From there, the threshold, progressive rates, exemptions and ownership structure determine what you owe.
The areas that deserve the most attention are:
- aggregating multiple properties correctly
- checking whether an exemption applies
- understanding MRIT if your property is in Perth
- reviewing ownership structures before buying
- checking your RevenueWA assessment when it arrives
- acting within the objection timeframe if something is wrong.
At KSH TAX, we help Perth property investors look at land tax as part of the whole property-tax picture, rather than as a standalone annual bill.
Want to know what your property portfolio is really costing you? Book a property tax review or call us on 08 6285 8110.
