Emergency services were called to Pipers Brook Road around 3.20pm on Monday.
The 41-year-old pilot was the only occupant of the helicopter, with initial investigations suggesting he was involved in fighting a bushfire in the Lebrina area.
"(He) was seriously injured but sadly died at the scene," Tasmania Police said in a statement.
"Our thoughts are with the man's family and loved ones at this difficult time."
The Australian Transport Safety Bureau will investigate the crash.
"We will be working with police, the Australian Transport Safety Bureau and other authorities so that this incident is fully investigated," Tasmania Fire Service acting deputy chief Jeff Harper said.
Mr Harper said it was a "very tragic situation" involving someone who was working hard to help keep the community safe.
"Understandably this is a very distressing incident for everyone involved and we will be ensuring our people have access to all available support."
The bushfire at Lebrina, which was sparked last week when a burn-off on private property got out of hand, has burned through more than 1500 hectares.
It was at 'advice' level on Monday.
10°C