ACT Land Tax 2026-27: A Guide for Canberra Landlords
How ACT land tax works for rental properties in 2026-27: who pays, the $1,778 fixed charge, rates, unit calculations and a worked example.
ACT land tax for landlords: what you pay and how it's calculated (2026-27)
If you own a Canberra property that isn't your home, you almost certainly pay ACT land tax. Unlike most states, the ACT has no tax-free threshold for residential investment property: from the first dollar of land value, a rented house or unit is taxed every quarter. Here's how it works for 2026-27, and how to estimate your bill.
Who pays ACT land tax?
Land tax applies to ACT residential property that is not the owner's principal place of residence. That includes:
houses, townhouses and units that are rented out
homes left vacant that you don't live in
property held by a trustee
a rented granny flat on the same block as your home (tax applies to the rented portion, based on floor area)
Owners who are not Australian citizens or residents also pay a foreign ownership surcharge. Your own home is exempt, and commercial property isn't subject to land tax.
When does it start?
Land tax is assessed on your property's status at 1 July, 1 October, 1 January and 1 April. If a property is rented on one of those dates, you're liable for that whole quarter. There's no pro-rating by day.
If your home becomes a rental (for example, you move out and lease it), you must tell the ACT Revenue Office within 30 days. You do this using the Land Tax Notification Form. Late or missed notification is a tax default and can attract interest and penalties. That still applies if your property manager forgot to tell them: the owner remains liable.
How ACT land tax is calculated
Your land tax has two parts.
A fixed charge of $1,778 a year from 1 July 2026 (up from $1,693 in 2025-26).
A valuation charge, worked out from your land's average unimproved value (AUV). This is the average of the block's unimproved value over up to five years (for 2026-27: 2022 to 2026), so a single big valuation jump is smoothed out.
The valuation charge uses these marginal rates, unchanged for 2026-27:
AUV of the land. Valuation Charge
Up to $150,000 0.54% of the AUV
$150,001 – $275,000 $810 + 0.64% of the amount over $150,000
$275,001 – $1,000,000 $1,610 + 1.24% of the amount over $275,000
1,000,001 – $2,000,000 $10,600 + 1.25% of the amount over $1,000,000
Over $2,000,000 $23,100 + 1.26% of the amount over $2,000,000
The annual charge is billed quarterly, so each notice is roughly a quarter of the yearly amount.
Worked example: a rented house
A house in Woden with an AUV of $500,000:
Valuation charge: $1,610 + 1.24% × ($500,000 − $275,000) = $1,610 + $2,790 = $4,400
Fixed charge: $1,778
Total: about $6,178 a year, or roughly $1,545 a quarter
How it works for units and apartments
For units, the valuation charge is first worked out on the AUV of the whole complex (its residential portion). Each unit then pays its share based on its unit entitlement. For example, in a block of four equal units, each pays 25% of the complex's valuation charge.
Because the rate is set on the whole complex's land value, units in large complexes are taxed at the higher marginal rates and then apportioned. That's why two units of similar value can have quite different land tax bills. Your unit entitlement is shown on the unit plan, or ask your strata manager.
For an exact figure, use the ACT Revenue Office's land tax calculator, or check your latest Notice of Assessment.
Can I claim land tax on my tax return?
Land tax on a property that's rented or genuinely available for rent is generally deductible against your rental income. Keep your quarterly notices with your rental records, and confirm the treatment for your situation with your accountant.
Five ways landlords get caught out
Not notifying within 30 days when a home becomes a rental.
Assuming the agent handled it. The owner is liable even if the agent didn't notify the Revenue Office.
Forgetting vacant periods. A property you don't live in can still attract land tax between tenants.
Not budgeting for increases. The fixed charge rose 5% this year, and rising land values push the AUV up over time.
Moving back in without updating your status. If it becomes your home again, notify the Revenue Office so the tax stops.
Frequently asked questions
Is there a land tax threshold in the ACT? No. Unlike NSW or Victoria, there's no tax-free threshold for ACT residential land tax. A rented property pays from the first dollar, plus the fixed charge.
How often is ACT land tax charged? Quarterly, based on the property's status on 1 July, 1 October, 1 January and 1 April.
Do I pay land tax on my own home? No. Your principal place of residence is exempt.
Does my property manager pay land tax for me? Land tax is the owner's liability. A good property manager will remind you, flag status changes and keep records, but the notice and payment stay with you.
Get your Canberra rental working harder
At Jaira, the licensed principal manages your property directly, with tax and mortgage experience to help you understand the real costs of owning a Canberra investment. Find out what your property could rent for.
Get your free rental appraisal here
Or call Jugal on 0450 365 365.
Related: ACT Rent Increase Rules 2026: Landlord Guide · Property Management Fees
This article is general information only, current at November 2026, and isn't tax or legal advice. Rates change each 1 July. Check the ACT Revenue Office for current figures.