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 = $740,000

B is the land tax threshold for 2019 = $692,000

C is the land tax rate = 1.6%

D is the standard tax = $100

($740,000 minus $692,000) x 1.6 % + $100 = $868


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 = $4,780,000

B is the premium land tax threshold for 2019 = $4,231,000

C is the land tax rate = 2%

D is the basic land tax payable = $56,724

($4,780,000 - $4,231,000) x 2% + $56,724 = $67,704


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  = $750,000

B is the land tax rate = 1.6%

$750,000 x 1.6% = $12,000

Note: A premium land tax marginal rate of 2% applies for special trusts on the total taxable land value above $4,231,000.
Last updated: 19 December 2018