The building
In a pure land value tax, improvements sit outside the tax base.
Land · Housing · Public revenue
Land value tax.
Every address has a value. Where does it come from?
A tax on the value of a site. Buildings and other improvements are excluded. [01]
Assessed land value×Tax rate=Annual land tax
Before exemptions, reliefs or other charges. [05]
01 / Where value comes from
A neighbourhood adds value.
A station, a school, nearby jobs. The surroundings help determine what people will pay for a location. Land value taxation draws public revenue from that value. [03]
TransportJobs & businessesPublic services
Location value 
Connections, amenities and demand shape the value of a site.
The vacant plot
Keeping a valuable site empty does not remove the charge on its land value.
The revenue
Services, lower taxes elsewhere, or other spending: the use of the money is a separate decision.
02 / Try the numbers
Same land. Different tax bills.
Two hypothetical plots, each with land worth €200,000. Move the slider to change the building on plot B.
A
Vacant land
Land value €200,000
B
Land with a building
Land value €200,000
| Annual tax | Plot A | Plot B | Total |
|---|---|---|---|
| Land + buildings1% property tax | €2,000 | €6,000 | €8,000 |
| Land only2% land value tax | €4,000 | €4,000 | €8,000 |
At the starting values, both systems raise €8,000 in total.
Illustrative amounts in eurosIn this example, construction changes the property-tax bill. The land-tax bill stays the same.
03 / Around the world
One idea. Different rules.
Land-based taxes already operate in several places. Their rates, exemptions and relationship to other taxes differ.
01
National land tax
Land is taxed on its assessed value. Local rates, reliefs and limits on increases affect the bill. [05]
02
Germany · Since 2025
Its modified land-value model uses plot area and a standard land value. Residential use receives a reduction. [06]
03
Annual land value tax
Assessed land values form the tax base. Special rates and agricultural rules shape who pays. [08]
04
Australia · Reform since 2012
A long-running reform shifts revenue from transaction taxes towards broad-based, land-based rates. [07]
04 / The evidence
What has been tested?
The tax design is specific. Its wider effects depend on the place.
A 2026 review prepared for the Welsh Government found limited, context-dependent empirical support for many broad LVT claims. Development effects depended on demand, planning and tax design. [09]
Read the evidence reviewopens a new tab05 / Questions worth asking
The details matter.
Explore the details
A reform starts with local conditions.
Land values, household incomes, planning rules and existing taxes all affect how a reform would work. [09]
Follow the sources
Keep reading.
Official rules, economic analysis and an advocate’s perspective. Sources are linked beside the claims they support.
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- City: Large image · Report (Large image) · Small image · Report (Small image)
- Homes: Large image · Report (Large image) · Small image · Report (Small image)
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