Residential land, being a non-reproducible factor in fixed supply, becomes more valuable as the economy grows. This has been suggested as a potential cause of the widening inequality in income and wealth in many advanced economies. At the same time, agents often find it more profitable to invest in land rather than in productive capital, with a subsequent decline in the long-run rate of economic growth. This poses important questions about the fiscal treatment of land both in terms of policies aimed at reducing inequality and at improving long-term economic conditions. In this paper, we build a multiple-agents dynamic endogenous growth model that includes land and housing to study the long term effects of land taxation on economic growth and inequality. In the model there are two social classes: the capitalists, who invest both in productive assets and in housing (which is a combination of residential land and housing structures) but do not provide labour services, and the workers, who invest only in housing and decide on the level of effort they provide. Results from numerical simulations of the calibrated model show that a revenue-neutral shift from income taxation to land taxation increases long term economic growth and reduces wealth inequality.