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Australian investment property planning

Property tax and holding cost calculator

Estimate annual rental cashflow, ownership expenses and a simplified taxable rental result without hiding the assumptions.

Calculate annual costsTest stress scenarios

What does an investment property really cost each year?

A property can show an attractive gross rental yield while still requiring regular cash support. Interest, land tax, council rates, water charges, insurance, management, body corporate and maintenance all affect the result. A useful holding-cost calculation separates actual cashflow from the taxable rental result.

Annual cashflow before income tax = rent received − interest − cash operating expenses
Simplified taxable rental result = rent received − interest − potentially deductible expenses − depreciation entered

Property tax is not one national charge

In Australia, “property tax” can refer to state land tax, council rates, transfer duty at purchase, foreign-owner surcharges or income tax on rental profit. They have different calculation bases and payment dates. This page focuses on recurring holding costs and a simplified rental-income estimate.

Land tax

State or territory land tax is commonly based on taxable land value and ownership circumstances, not the market value of the house. Thresholds, aggregation, exemptions, trusts and foreign-owner rules vary. Enter the assessment or estimate supplied by the relevant revenue authority.

Rental income and deductible expenses

The ATO distinguishes between expenses that may be claimed immediately, decline-in-value deductions and capital works deductions. Private use, borrowing structure and timing can change what is deductible. This calculator treats your entries as assumptions and does not decide deductibility.

Cashflow is different from tax outcome

Depreciation may reduce a taxable result without being a current cash payment. Principal repayments use cash but are not included in the interest expense field. That is why the calculator reports both figures separately.

Use this as a scenario screen: enter annual amounts from current quotes, loan statements and official assessments. Ask a registered tax agent to confirm the tax treatment and an adviser to assess suitability.

More property cost tools

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Investment property cost questions

Is mortgage principal a tax deduction?

Principal repayment is generally not the same as loan interest. This calculator asks for annual interest, not total loan repayments. Confirm the treatment of your borrowing with a registered tax agent.

Should depreciation be included in cashflow?

Depreciation is generally a non-cash tax assumption, so this tool excludes it from cash expenses but includes the amount entered in the simplified taxable rental result.

Does every Australian investment property pay land tax?

No. Liability depends on the jurisdiction, taxable land value, ownership, exemptions, aggregation and other rules. Use the relevant state or territory revenue office information.

Official sources to verify

Content reviewed 26 July 2026. Tax treatment depends on individual facts and current law.