Changes to land tax in 2025
Land tax threshold freeze
The Revenue Legislation Amendment Bill 2024 introduced important changes to land tax thresholds.
From 1 January 2025 land tax thresholds will be fixed at:
- General threshold: $1,075,000
- Premium threshold: $6,571,000
These thresholds will remain unchanged for future land tax years. The freeze applies to both general and premium thresholds.
The Treasurer will assess these thresholds by 1 June 2027 to ensure they remain appropriate for property owners and market conditions.
Read more about land tax thresholds and rates.
Increase to surcharge land tax rates for foreign owners
From 1 January 2025 the surcharge land tax rate for foreign owners will increase from 4% to 5%.
This means 2025 surcharge land tax assessments will be assessed at 5% of the total residential land value.
Changes to the eligibility criteria for the principal place of residence exemption
To receive the principal place of residence (PPR) exemption from 1 February 2024 you must:
- own at least 25% of the property, either solely or jointly, and
- meet the PPR eligibility requirements.
If these minimum requirements are not met by the owner/s they will be liable for land tax from 1 January 2025 onwards.
Owner/s who purchase a property, move into an existing property or acquire land on or after 1 February 2024 and do not meet these new requirements will become liable from the 2025 land tax year.
Owner/s who were eligible for the exemption prior to 1 February 2024 but own less than a 25% interest in the land may continue to claim the exemption for the 2024 and 2025 land tax years. Those owners will then become liable from the 2026 land tax year.
If the owner/s were not receiving the exemption prior to 1 February 2024, but believe they were eligible for the exemption, they can lodge a return via Land Tax Online.
For more information visit Apply for an exemption or concession.
Buying or selling a property
Early issue notice of assessment
Revenue NSW will start issuing notices of assessment from Thursday 2 January 2025.
If you will be completing a property settlement in the beginning of the new year, (e.g. your settlement date falls in the first week of January), you can request an early issue of your notice of assessment for 2025.
If you are requesting an early issue of your notice of assessment and/or require a change to your land holdings, (e.g. change of principal place of residence exemption), you will need to:
- Log in to your MyServiceNSW account.
- Update your land tax details.
- Enter the property settlement date.
Please note
To receive your early issue notice of assessment via email, please log in to your MyServiceNSW account and update your communication preference to email.
For more information on lodging a return visit the Land tax online guide.
Land tax clearance certificates
You can request a 2025 Section 47 land tax clearance certificate through one of our Client Service Providers (CSPs) from Monday 16 December 2024.
Please make sure clearance certificates are applied for at least 14 days before the scheduled settlement date. Processes associated with clearing a charge may take up to 10 business days.
At settlement you will need to provide one of the following documents to the purchaser:
- A Section 47 land tax clearance certificate showing no charge.
- A Section 47 land tax clearance certificate showing a charge and either of the following documents outlining the total amount payable to clear the charge:
- A copy of your notice of assessment if the due date has not passed.
- A settlement letter or clearance quote if the due date has passed.
The charge on the land will be removed when the amount showing as owed on any of these documents is paid.
Please note
A clear clearance certificate does not absolve the vendor from any liability or potential future liability, but rather protects the purchaser.
For more information on clearance certificates and paying land tax at settlement visit Buying or selling a property.
Land tax payment options
Our land tax payment options are:
- Pay in full within 60 days of the issue date and receive a 0.5% discount.
- Interest-free payment plans are available for a period of up to 9 months.
Payment options are outlined on the notice of assessment.
Note: If you are registered for digital notices, email and SMS payment reminders are available.
For more information visit Pay your land tax.
Land tax notices direct to your inbox
You can now receive land tax notifications direct to your inbox.
To receive all notifications by email, follow the steps under “update communication preference to email” on our Land tax online guide page.
By opting in to digital notices you will no longer receive paper notices.
If your communications preference is currently email, please log in and confirm that your email address is up to date.
