Australian States Tax Rates 2026: Complete Relocation Tax Comparison
Australia has no state income tax — only federal. State taxes are: stamp duty (Transfer Duty) on property purchase, annual Land Tax above thresholds, Motor Vehicle Stamp Duty on car purchases, and Payroll Tax for employers. The biggest mover-relevant tax differences in 2026 are: Victoria has the highest stamp duty (peak 6.5% above $2M); ACT has phased out stamp duty in favour of higher annual rates; NT has the lowest stamp duty for affordable housing. First-Home Buyer concessions vary widely — NSW exempts to $800K, ACT/QLD/WA have tiered schemes, VIC offers a 50% concession on new construction.
Total Move Tax = Stamp Duty + First Year Land Tax + Motor Vehicle Stamp Duty + Vehicle Re-registration Fees
Australia's federal system means personal income tax is identical regardless of state of residence. The differences between states are in transactional taxes (stamp duty), recurring taxes (land tax), and one-off costs (vehicle stamp duty, registration). For relocators, these state taxes can swing the cost of a move by tens of thousands of dollars. This 2026 guide compares all eight Australian jurisdictions side-by-side.
What This Means
The calculator computes stamp duty and first-year land tax for each state based on property value. Use it to compare destination tax cost before committing to interstate purchase.
Stamp Duty / Transfer Duty by State 2026
For a $1,000,000 residential property (primary residence, owner-occupier, not first-home buyer):
| State / Territory | Stamp Duty | Notes |
|---|---|---|
| NSW | $40,090 | Standard rates |
| VIC | $55,000 | Highest for properties >$750K |
| QLD | $38,025 | Mid-range |
| WA | $42,615 | Mid-range |
| SA | $48,830 | Higher than NSW/QLD/WA |
| TAS | $40,185 | Comparable to NSW |
| ACT | ~$13,200 (phased reduction; replaced by higher rates) | ACT phasing out stamp duty |
| NT | $49,500 | Higher despite small population |
For a $500,000 property:
| State / Territory | Stamp Duty |
|---|---|
| NSW | $17,990 |
| VIC | $25,070 |
| QLD | $15,925 |
| WA | $17,765 |
| SA | $21,330 |
| TAS | $18,000 |
| ACT | ~$8,200 (phased reduction) |
| NT | $23,929 |
Foreign Buyer Surcharges:
- NSW: 8% additional duty for foreign persons.
- VIC: 8% additional duty.
- QLD: 7% additional duty.
- WA: 7% additional duty.
- SA, TAS, ACT, NT: variable but generally 7-8%.
Annual Land Tax by State 2026
Land tax is assessed on the unimproved land value (not house value) above each state's threshold. Primary residence (owner-occupier) is generally exempt; investment properties and second homes pay.
| State / Territory | Land Tax Threshold (Investor/Second Home) | Top Marginal Rate |
|---|---|---|
| NSW | $1,075,000 (general) | 2% above $6.57M |
| VIC | $50,000 (post-2024 reform) | 2.65% above $3M |
| QLD | $600,000 (post-2023 reform) | 2.5% above $5M |
| WA | $300,000 | 2.67% above $11M |
| SA | $732,000 | 2.4% above $1.35M |
| TAS | $100,000 | 1.5% above $499K |
| ACT | $0 (replaced by combined rates with stamp duty phaseout) | — |
| NT | No general land tax | — |
For a typical investment property with $700,000 land value:
- NSW: $0 (under threshold)
- VIC: ~$3,200/year (substantial post-2024 reform)
- QLD: ~$1,500/year (post-2023 reform)
- WA: ~$2,800/year
Victoria and Queensland have aggressively expanded land tax in recent years; NSW and the smaller jurisdictions have remained more investor-friendly.
First-Home Buyer Concessions by State
| State / Territory | First-Home Buyer Stamp Duty Exemption | First-Home Owner Grant |
|---|---|---|
| NSW | 0% to $800,000 (full exemption); concession $800K-$1M | $10,000 (new homes only) |
| VIC | 0% to $600,000 (full); concession $600-$750K | $10,000 (new construction) |
| QLD | Full exemption to $700,000 | $30,000 (boosted from $15K, new homes 2026) |
| WA | 0% to $430,000; concession $430-$530K | $10,000 (new homes) |
| SA | Concession to $650,000 | $15,000 |
| TAS | Concession to $600,000 | $10,000 |
| ACT | Phased through ACT Home Buyer Concession Scheme | — |
| NT | Concession to $650,000 | $10,000 |
Motor Vehicle Stamp Duty by State 2026
Charged on dutiable value (typically purchase price or market value). For a $35,000 vehicle:
| State / Territory | Vehicle Stamp Duty Rate | Tax on $35K Vehicle |
|---|---|---|
| NSW | 3% (4% on luxury >$44,809) | $1,050 |
| VIC | 4.2% | $1,470 |
| QLD | 3% (most vehicles); 4-cyl petrol up to $76,950 has lower rate | $1,050 |
| WA | 3% to $25K, then 4% (passenger cars) | $1,150 |
| SA | 4% (under $40K) | $1,400 |
| TAS | 3-4% (depending on value) | $1,225 |
| ACT | 3% (most vehicles); EV exemption | $1,050 |
| NT | 3% (under $1M value) | $1,050 |
Plus annual registration: ranges A$700-A$1,500/year depending on state, vehicle weight, and CTP insurance scheme.
No State Income Tax — All Federal
Australia is one of three OECD countries with no state-level personal income tax (the others are Norway and Mexico). All personal income tax is federal, administered by the ATO. 2025/26 personal income tax brackets:
| Income Range | Tax Rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Above $190,000 | 45% |
Plus 2% Medicare Levy on most filers. Plus Medicare Levy Surcharge (1%-1.5%) for high-income earners without private health insurance.
Which State Has the Best Tax Position for Buyers?
- For first-home buyers: QLD (full exemption to $700K + $30K grant on new) and NSW (full exemption to $800K) are the best positioned. Combined savings of $30K-$50K vs other jurisdictions on a typical first home.
- For property investors: NSW remains the most investor-friendly due to the high $1.075M land tax threshold. WA close behind. VIC and QLD have become significantly more aggressive with land tax post-2023/2024 reforms.
- For affordable home owners (under $500K): ACT (with stamp duty phasing out) and QLD are most competitive. SA and NT highest at this price point.
- For luxury home buyers: NSW lowest at $40K stamp duty per $1M; VIC highest at $55K per $1M. For a $3M property: NSW $148K, VIC $185K, NT (which still uses tiered rates above $1M) $174K. Difference of $37K between best and worst — meaningful even at this price level.
Expert Notes for This Route
The single biggest cost surprise on Australian interstate moves is Victoria's combined stamp duty + land tax burden. Since the 2024 land tax reform, VIC investment property carrying cost has increased $1,500-$3,000/yr, in addition to the higher stamp duty paid at purchase. For investors comparing destinations, run total-cost-of-ownership over 10-year hold rather than just stamp duty.
Last reviewed 2026-05-07 by Mustafa Bilgic.
Data Sources & Citations
Frequently Asked Questions
Does Australia have a state income tax?
No. Personal income tax in Australia is entirely federal, administered by the ATO. State-level taxes are limited to stamp duty on property and vehicles, annual land tax (above thresholds for investors), and payroll tax (paid by employers, not employees).
Which Australian state has the cheapest stamp duty?
QLD is generally cheapest for the typical sub-$1M first-home buyer ($38,025 on $1M vs NSW $40,090 vs VIC $55,000). ACT is phasing out stamp duty entirely (effectively cheapest going forward). NSW is competitive in the middle range.
Why is Victoria's stamp duty so much higher than NSW?
Victoria has steeper marginal rates above $750K. For a $1M property: VIC $55,000 vs NSW $40,090 — $14,910 more in VIC. The differential widens at higher prices: a $2M property attracts $123K in VIC vs $90K in NSW.
Did Queensland actually increase land tax?
Yes — QLD substantially expanded land tax in 2023, lowering the threshold to $600K and adding aggressive marginal rates. For a $700K-land-value investment property, annual land tax is now ~$1,500 in QLD where it was $0 before. Discourages interstate investors.
Does ACT have stamp duty in 2026?
Yes but reduced significantly through ongoing 20-year phaseout. ACT replaced part of stamp duty with higher annual rates (paid via Lease Variation Charge / general rates). For a $1M property: stamp duty roughly $13,200 in 2026 vs $40K+ in NSW. Net of higher annual rates, total taxation over 10-20 years is similar to other states.
Are first-home buyer grants reducing?
QLD increased its First-Home Owner Grant to $30,000 for new construction in 2026 (boosted from $15K). Most other states maintained $10,000 grants. Stamp duty exemptions have generally been preserved or expanded (NSW expanded to $800K from $650K).