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Vacant residential land tax (current rates)

Current rates for vacant residential land tax.

VRLT is based on the land’s capital improved value. But the rate of tax depends on the period the land has been liable for VRLT and other circumstances such as whether it has been previously used and occupied or sold.

There is no threshold or COVID levy.

1% of capital improved value

The following lands will be assessed at the rate of 1% of its capital improved value:

  • Land in metropolitan Melbourne that has remained undeveloped for a continuous period of 5 years or more and is capable of residential development.
  • New residential land unused, unoccupied and unsold for more than 3 years.

All other land

Number of consecutive years the land has been liable for VRLT

Rate of VRLT

One year

1% of capital improved value

Two years

2% of capital improved value

Three or more years

3% of capital improved value

Before 2025, VRLT was 1% of capital improved value for all properties.

Estimate what you owe using our VRLT calculator.

Updated: 16 February 2026