Residential Zoned Land Tax

The Residential Zoned Land Tax is designed to encourage the building of homes on land that is already zoned and serviced for housing.

• How it works:

Local councils identify land that is liable for the tax through an annual mapping process. A map is published every year on 31 January, showing any updates or appeal decisions.

• When it started:

The first date for liability was 1 February 2025.

• Deferral option:

If you get planning permission and start building, you can defer paying the tax.

• Impact so far:
  • Almost 2,000 tax returns have been filed.
  • 526 landowners have deferred the tax because they are actively developing their land.
  • In 2024, land sales went up by 30%, and the average price per acre of residential land fell by 6% compared to 2023.

This shows the tax is working as intended — making zoned land available for housing. The tax will continue to be used to help increase housing supply across all local authorities.