Land Tax in New South Wales — Rates, Thresholds & Calculator 2026
Everything you need to know about land tax in NSW for the 2025-26 financial year, including current rates, thresholds, exemptions, and surcharges.
Overview
New South Wales has one of the highest land tax thresholds in Australia at $1,075,000, meaning many investors with a single property escape land tax entirely. However, because land values are aggregated across all investment properties owned in the state, investors with multiple holdings can quickly exceed the threshold. NSW uses a two-tier marginal rate structure: 1.6% on taxable land between $1,075,000 and $6,571,000, then 2% on amounts above $6,571,000 (the premium rate).
The general threshold for 2025-26 is $1,075,000. A flat fee of $100 applies once the threshold is exceeded, plus marginal rates on the amount above the threshold.
| Land Value From | To | Marginal Rate |
|---|---|---|
| $0 | $1,075,000 | Nil |
| $1,075,001 | $6,571,000 | 1.6% |
| $6,571,001 | and above | 2.0% |
How Land Is Valued in NSW
NSW uses the unimproved land value as determined by the Valuer General. This is the value of the land only, excluding any buildings, structures, or improvements. Land values are reassessed periodically and appear on your council rates notice.
Revenue Body
Revenue NSW
Assessment Date
31 December each year. Ownership on this date determines your land tax liability for the following calendar year.
Aggregation Rules
All taxable land owned by the same person in NSW is aggregated (combined) when assessing land tax. If you own three investment properties each valued at $400,000, your total taxable land value is $1,200,000 -- above the $1,075,000 threshold -- even though no single property exceeds it.
Exemptions
- Principal place of residence (PPOR)
- Primary production land (farming)
- Land used for boarding houses
- Retirement villages
- Land owned by charities and religious bodies
- Land below the tax-free threshold
Surcharges
Foreign Owner Surcharge
A 4% foreign owner surcharge applies on top of standard land tax rates for residential land owned by foreign persons. This is assessed from the first dollar of land value with no threshold.
Other Notable Rules
NSW offers a $100 flat fee on entry to the taxable range. Joint owners are assessed on their proportional share, but companies and trusts may be assessed differently. Land held in a special trust may qualify for the general threshold, while fixed trusts are assessed at the higher trust rate.
Land Value
$1,500,000
State
NSW
Annual Land Tax
$6,900 per year
Calculation
Taxable amount = $1,500,000 - $1,075,000 = $425,000. Tax = $100 + ($425,000 x 1.6%) = $100 + $6,800 = $6,900.
NSW land tax is one of the most significant holding costs for Sydney property investors. With median land values in many Sydney suburbs exceeding $1 million, even a single investment property can trigger a land tax liability. Investors with portfolios of two or more properties in NSW should factor land tax into their cash flow calculations from the outset.
The assessment date of 31 December means that land tax planning -- such as transferring properties between entities or selling before year-end -- needs to be finalised before this date. Land tax assessments are issued in January and are typically due within a few months.
Frequently Asked Questions
What is the land tax threshold in NSW for 2025-26?
The general land tax threshold in NSW for 2025-26 is $1,075,000. If the total unimproved value of all your taxable land in NSW is below this threshold, you pay no land tax. Above the threshold, a flat $100 fee applies plus 1.6% on the amount over $1,075,000 (up to $6,571,000), then 2% above that.
How is land tax calculated in NSW?
Land tax in NSW is calculated on the total unimproved value of all your investment land in the state as at 31 December each year. Your principal place of residence is exempt. The tax is $100 plus 1.6% of the amount by which your total taxable land value exceeds $1,075,000, with a premium rate of 2% applying above $6,571,000.
Do foreign owners pay extra land tax in NSW?
Yes. Foreign persons who own residential land in NSW pay a 4% surcharge on the land value in addition to the standard land tax rates. The foreign surcharge applies from the first dollar of land value -- there is no threshold exemption for the surcharge component.
Is land tax in NSW deductible?
Yes. Land tax paid on investment properties is fully tax-deductible in the financial year it is paid. It is claimed as a holding cost deduction against your rental income. This reduces the effective after-tax cost of land tax at your marginal tax rate.
Calculate Your NSW Land Tax
Enter your total taxable land value and get an instant calculation of your New South Wales land tax liability. Compare with other states to see where your money goes furthest.
Related Calculators & Guides
Land Tax by State
Information is for the 2025-26 financial year and is general in nature. Rates, thresholds, and surcharges may change. Land tax rules are complex and depend on your specific circumstances including ownership structure, property use, and residency status. Always consult a qualified tax professional or your state revenue office for advice specific to your situation.