NSW Land Tax

What is Land Tax in NSW?

Land tax is an annual tax on certain land owned in New South Wales. Liability is generally determined by reference to land ownership at midnight on 31 December before the relevant land tax year.

Whether land tax is payable can depend on the combined value of taxable NSW land, how the land is owned and whether an exemption or concession applies.

Land tax may apply to NSW land that is not exempt. This can include:

• vacant land
• investment properties
• holiday homes
• residential, commercial and industrial land
• company title units
• commercial properties such as shops, factories and warehouses
• certain interests in land leased from state or local government

Your principal place of residence may qualify for an exemption, as may certain land used for primary production and other categories of exempt land.

Who May Need to Pay NSW Land Tax?

You may be liable for land tax where the combined value of your taxable NSW land exceeds the applicable threshold.

Importantly, the general threshold applies to the combined land value of taxable property rather than separately to each property. Whether a property produces income does not, by itself, determine whether land tax is payable.

Different rules can apply depending on how property is owned, including joint ownership, companies and trusts.

NSW Land Tax Thresholds and Rates for 2026

For the 2026 land tax year, the current general threshold is $1,075,000.

For land above the general threshold and up to the premium threshold, the general rate is $100 plus 1.6% of the land value above $1,075,000.

The current premium threshold is $6,571,000. For land above the premium threshold, the rate is $88,036 plus 2% of the land value above $6,571,000.

The general and premium land tax thresholds have been fixed at these levels from the 2025 land tax year onwards.

How is Land Tax Calculated?

Land tax is generally calculated using the combined value of taxable NSW land.

The value used for land tax purposes is the land value rather than the value of buildings and other improvements on the land.

Revenue NSW generally uses an average of land values for the relevant year and the preceding two years, subject to rules applying to circumstances such as newly created parcels.

Ownership arrangements can affect both assessment and entitlement to the general threshold.

Principal Place of Residence Exemption

A property used and occupied as an owner’s principal place of residence may qualify for an exemption, provided the relevant eligibility requirements are satisfied.

An important change applies from the 2026 land tax year. The person or persons occupying the property must generally hold a combined ownership interest of at least 25% to qualify for the principal place of residence exemption.

There are additional eligibility requirements and concessions, so individual circumstances should be considered before relying on the exemption.

Other Land Tax Exemptions

Other exemptions and concessions may apply, including in relation to certain land used for primary production and other qualifying uses.

Whether an exemption applies depends on the particular ownership, use and circumstances of the land.

Companies and Related Companies

Companies may be assessed differently where they are related to other companies.

Revenue NSW applies specific rules concerning concessional and non-concessional companies and the availability of the general land tax threshold.

Where land is held through a company, trust or other ownership structure, specific land tax rules may apply. Certain trusts and related companies may not receive the general land tax threshold, so advice should be obtained before assuming the ordinary individual land tax rules apply.

Jointly Owned Property

Joint ownership can also affect the way land tax is assessed. Revenue NSW may make both a joint assessment and an individual assessment, with rules designed to account for tax attributable to jointly owned land.

The ownership requirements for exemptions, including the principal place of residence exemption, should also be considered.

Foreign Owners and Surcharge Land Tax

Separate surcharge land tax rules may apply to foreign persons who own residential land in NSW. The surcharge regime has different rules from ordinary land tax.

See our information about Foreign Persons Duty and Land Tax Surcharge for further information.

Property Law Advice

Land tax issues can arise as part of property ownership, investment and property transactions. You can also read more about our Property Law services.

Getting Advice About NSW Land Tax

Land tax liability can depend on the value and use of your land, available exemptions and concessions, and the way property interests are owned.

Russell Kelly & Associates can advise on legal issues affecting property ownership and transactions where land tax considerations arise.

Contact Our Office

Rates and thresholds reviewed: 30 August 2026.

Further information about current thresholds, rates and exemptions is available from Revenue NSW.

This information is general in nature. Readers should not act or rely on it without obtaining professional advice concerning their particular circumstances.