Sample land tax calculations

Basic land tax calculation

Use the following formula to calculate basic land tax:

(A minus B) multiplied by C plus D = Land tax payable.

A is the total land value = $680,000

B is the land tax threshold for 2018 = $629,000

C is the land tax rate = 1.6%

D is the standard tax = $100

($680,000 minus $629,000) x 1.6 % + $100 = $916


Premium land tax calculation

Use the following formula to calculate premium land tax:

(A minus B) multiplied by C plus D = Total premium land tax payable.

A is the total land value = $4,423,000

B is the premium land tax threshold for 2018 = $3,846,000

C is the land tax rate = 2%

D is the basic land tax payable = $51,572

($4,423,000 - $3,846,000) x 2% + $51,572 = $63,112


Special trusts land tax calculation

Use the following formula to calculate special trusts land tax:

A multiplied by B = total special trust land tax payable.

A is the total land value  = $600,000

B is the land tax rate = 1.6%

$600,000 x 1.6% = $9,600

Note: A premium land tax marginal rate of 2% applies for special trusts on the total taxable land value above $3,846,000.
Last updated: 10 December 2017