What are all the property taxes and fees in Tasmania?

Authored by the expert who managed and guided the team behind the Australia Property Pack

Yes, the analysis of Tasmania's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Tasmania. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Tasmanian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Hobart, Launceston, and Devonport. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What is the current stamp duty in Tasmania, and how much would it cost on a $500,000 or $1 million property?

Tasmania calculates stamp duty on a sliding scale with higher rates for more expensive properties.

For a $500,000 property, you'll pay exactly $18,247 in stamp duty as of September 2025. For a $1 million property, the stamp duty is $32,810, calculated as $27,810 plus $4.50 per $100 above $725,000.

The stamp duty must be paid within 90 days of settlement, and this applies to all property transfers in Tasmania regardless of whether you're buying an established home or building a new one. The rates are set by the Tasmanian State Revenue Office and are subject to periodic adjustments.

It's something we develop in our Australia property pack.

Are there stamp duty discounts for first home buyers, pensioners, or downsizers, and how much do they save?

Tasmania offers significant stamp duty relief for eligible buyers, with savings ranging from thousands to tens of thousands of dollars.

First home buyers receive a full stamp duty exemption for established homes under $750,000 purchased between February 18, 2024, and June 30, 2026. This saves $18,247 on a $500,000 property and $28,935 on a $750,000 property.

Pensioners who are downsizing get a 50% stamp duty concession when buying a home under $600,000 after selling their principal residence. This means a pensioner buying a $500,000 property would pay only $9,124 instead of $18,247, saving $9,123.

Additional exemptions apply for relationship transfers, family farm transfers, and transfers to charitable entities. These concessions can save buyers substantial amounts, making property ownership more accessible for specific groups in Tasmania's residential market.

What is the foreign investor surcharge in Tasmania, and how is it calculated?

Foreign investors face a substantial additional cost when purchasing residential or primary production property in Tasmania.

The Foreign Investor Duty Surcharge (FIDS) adds 7% of the property's dutiable value on top of standard stamp duty. For a $500,000 property, foreign buyers pay the regular $18,247 stamp duty plus an additional $35,000 surcharge, totaling $53,247.

This surcharge applies to any residential property acquired by foreign persons, including non-residents and foreign companies. The 7% rate is fixed and applies to the entire property value, making Tasmania property investment significantly more expensive for overseas buyers.

The surcharge is designed to prioritize local buyers in Tasmania's residential property market and generate additional revenue for state infrastructure projects.

What are the Titles Office registration fees when buying property in Tasmania?

Tasmania's Land Titles Office charges fixed registration fees that don't vary based on property price.

The transfer registration fee is $357 for all property purchases, regardless of whether you're buying a $300,000 apartment or a $2 million house. The mortgage registration fee is approximately $135-$160, depending on the specific type of mortgage document.

These fees are statutory charges set by the Tasmanian government and are subject to periodic adjustment, typically announced in annual fee schedules. Unlike stamp duty, these registration fees remain constant across all property price ranges, making them a predictable cost in your property purchase budget.

The fees must be paid at settlement and are usually handled by your conveyancer or solicitor as part of the property transfer process.

Are there mortgage registration or discharge fees, and what do they cost?

Tasmania charges specific fees for mortgage registration and discharge, paid to both the state and your lender.

Mortgage registration fees range from $135-$160 payable to the Land Titles Office, while discharge fees are typically $198-$202. These fees are charged each time you register a new mortgage or discharge an existing one when refinancing or paying off your loan.

Banks may also charge additional mortgage establishment or discharge fees, which vary by lender and loan product. These combined fees can add $400-$600 to your total borrowing costs when establishing or changing your mortgage.

The state fees are set by regulation and are the same regardless of your loan amount, making them predictable costs in your property finance planning.

How is land tax calculated in Tasmania, and what would it cost for $400,000 or $1 million land?

Tasmania's land tax applies only to investment properties and vacant land, with owner-occupied homes completely exempt.

Land Value Range	Tax Rate	Calculation Method
Up to $124,999	Nil	No tax payable
$125,000 - $1,074,999	$100 + 1.6%	$100 plus 1.6% of value above $125,000
$1,075,000 - $6,571,000	$17,475 + 2.0%	$17,475 plus 2.0% of value above $1,075,000
Above $6,571,000	$127,395 + 2.5%	$127,395 plus 2.5% of value above $6,571,000

For $400,000 land value: $100 + 1.6% × ($400,000 - $125,000) = $4,500 annually. For $1 million land value: $100 + 1.6% × ($1,000,000 - $125,000) = $14,100 annually.

What land tax exemptions exist, and how much do they save?

Tasmania provides several land tax exemptions that can eliminate the entire tax liability for eligible properties.

Owner-occupied homes are completely exempt from land tax, saving property owners thousands of dollars annually. For a $500,000 property, this exemption saves $4,500 per year, while a $1 million property owner saves $14,100 annually.

Primary production land used for farming is also exempt, as are properties owned by registered charities. These exemptions apply to the entire land tax liability, not just a percentage reduction.

The exemptions are automatic for owner-occupied homes but must be claimed for farming land and charitable properties. The savings represent significant ongoing cost reductions for eligible Tasmania property owners.

It's something we develop in our Australia property pack.

What are average annual council rates in Tasmania, and how do Hobart and Launceston compare?

Council rates vary significantly between Tasmania's major cities, with Hobart being considerably more expensive than Launceston.

In Hobart, the average annual council rates for a typical house are $2,190 as of September 2025, reflecting recent substantial increases. The rates are calculated at 0.2951 cents per dollar of capital value, plus various service charges including a $300 waste management fee and $24 waste levy.

Launceston council rates are approximately $300-$500 lower annually for similar properties, with typical rates ranging from $1,600-$1,900 for an average house. Launceston uses a different calculation method based on Assessed Annual Value rather than capital value.

Both cities include fire service levies in their rates, with minimum charges of around $50 per year. The significant difference in rates between these cities affects the overall cost of property ownership in Tasmania's major urban areas.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Is there a fire service levy included in council rates, and what does it cost?

Fire service levies are automatically included in council rates across Tasmania, with costs varying by property value and location.

In Hobart, the fire service levy is charged at 0.0542 cents per dollar of capital value, with a minimum charge of $50 per year. For a $500,000 property, this equals approximately $271 annually, though it's included in the overall rates calculation.

Other Tasmanian councils charge similar fire service levies, typically with minimum fees of $48-$50 per year for lower-value properties. The levy helps fund Tasmania Fire Service operations across the state.

This charge is mandatory and appears as a separate line item on your council rates notice, ensuring transparent funding for emergency services in Tasmania's residential areas.

What are TasWater's charges, and how much does a household typically pay?

TasWater provides water and sewerage services across Tasmania with standardized pricing that increased 3.5% in July 2025.

The average Tasmanian household pays approximately $1,100-$1,250 per year for combined water and sewerage services, equivalent to $275-$312 per quarter. Water charges are based on actual consumption through metered usage, while sewerage charges are calculated per equivalent tenement (ET).

These charges apply to all properties regardless of occupancy status, meaning investment properties pay the same rates as owner-occupied homes. TasWater is Tasmania's single water authority, eliminating regional variation in pricing.

The 2025 price increase reflects infrastructure investment needs across Tasmania's water system, with further modest increases expected in coming years.

What additional ongoing charges apply, like waste collection or stormwater fees?

Several additional charges add to annual property costs beyond basic rates and utilities.

1. **Waste Management Service Charge**: $300 per year for residential properties, covering collection and landfill rehabilitation2. **State Waste Levy**: $24 annually, added to support waste reduction programs 3. **Stormwater Removal Rate**: 0.0237 cents per dollar of capital value, averaging $70-$150 per year4. **Fire Service Levy**: Minimum $50 per year (included in council rates)5. **Emergency Services Levy**: Varies by council, typically $25-$50 annually

These charges total approximately $450-$550 per year for an average property, with waste management representing the largest component. All charges are mandatory and appear on council rate notices or separate utility bills.

What are the total annual property holding costs for a $500,000 property in Tasmania?

Total annual holding costs vary dramatically based on whether you're an owner-occupier or investor.

For owner-occupiers of a $500,000 property in Hobart, total annual costs are approximately $3,820, including council rates ($2,190), TasWater ($1,180), and various charges ($450). Land tax doesn't apply to principal residences.

Investors face significantly higher costs of approximately $8,320 annually, adding $4,500 in land tax to the owner-occupier costs. This represents 1.66% of the property value in annual holding costs for investors.

In Launceston, total costs are typically $300-$500 lower due to reduced council rates. Foreign investors may face additional surcharges on land tax, further increasing annual costs.

It's something we develop in our Australia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Money.com.au Stamp Duty Calculator
2. Premier of Tasmania - Stamp Duty Policy
3. Youi - First Home Buyer Stamp Duty
4. State Revenue Office Tasmania - Foreign Investor Surcharge
5. City of Hobart - Rates and Charges
6. State Revenue Office Tasmania - Land Tax Rates
7. TasWater - Pricing Updates
8. Launceston City Council - Annual Plan