Land tax

What is land tax?

Land tax is an annual tax levied at the end of the calendar year on property you own that is above the land tax threshold.

Your principal place of residence is generally exempt, and other exemptions and concessions may apply.

Land tax is different to property tax.

Find out more about land tax in the video below.

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Who pays land tax?

You may have to pay land tax if you own, or jointly own:

• vacant land, including rural land
• land where a house, residential unit or flat has been built
• a holiday home
• an investment property or properties
• company title units
• residential, commercial or industrial units, including car spaces
• commercial properties, including factories, shops and warehouses
• land leased from state or local government.

Additionally, you may have to pay land tax if:

• You are deemed a foreign owner for land tax purposes (this includes properties opted into property tax).
• You are a not-included owner for a property opted into property tax and your aggregated land value of all properties owned is above the land tax threshold. For further information regarding land tax implications for properties opted into property tax, please refer to the property tax page.

Land tax applies regardless of whether income is earned from the land.

Land tax exemptions

Generally, you do not pay land tax on:

• your home, known as your principal place of residence
• your farm, known as primary production land, or
• any land you own with total taxable value below the land tax threshold.

Read more about other land tax exemptions and concessions.

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Register for land tax

You must register for land tax if the value of all your taxable land is above the land tax threshold, even if you have not received a land tax notice of assessment from Revenue NSW.

Our tax system relies on you to honestly and voluntarily self-assess and comply with your land tax obligations.

If you are liable for land tax but do not register, or fail to lodge a return, we may charge you interest and apply penalties under the Taxation Administration Act 1996.

Learn how to register online

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How is land tax and surcharge land tax calculated?

Land tax is calculated on the total value of all your taxable land above the land tax threshold, not on each individual property.

If the combined value of your land does not exceed the threshold, no land tax is payable however surcharge land tax may still apply. There is no tax-free threshold applicable to surcharge land tax.

Your liability for each year is based on the value of all land you owned on 31 December in the previous year.

Any changes to the land you own this year will only affect how much you pay next year. Estimate your land tax liability and surcharge (if applicable) with the Land Tax Calculator below.

If the ownership and/or use of any of your land changes, notify us by lodging a return in Land Tax Online.

Use the Land Tax Calculator

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Thresholds and rates

Historically, the land tax threshold has changed annually. The 2024-2025 State Budget announced a freeze on the general and premium rate thresholds for land tax for years after 2024.

From 2024 onwards, the land tax thresholds and rates will be applied as follows:

• General threshold: $100 plus 1.6% of land value above the threshold, up to the premium threshold.
• Premium threshold: $88,036 plus 2% of land value above the threshold.
• Land tax is applied for the full year following the taxing date of 31 December, and no pro-rata calculation applies.

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How is land valued for land tax?

The NSW Valuer General determines the value of all land in NSW at 1 July each year. Land value is the unimproved value of your land.

The taxable value of each parcel of land is determined on the average value from the current year and the two past years, where applicable.

When a parcel of land has been created less than three years ago, for example, through a subdivision or amalgamation, we only consider the years after it was created.

Find out more about the method for valuing land.

You can also look up the average values in your local area, complete a land value search, or object to the valuation of your land.

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Your notice of assessment

If you are liable for land tax, you will receive an annual notice of assessment that will include a list of all NSW land you owned on 31 December the previous year and how much land tax you must pay.

If you do not receive a notice of assessment, please contact us to find out if you are liable for land tax.

Check your notice of assessment

Check that the following details on your notice of assessment are correct:

• All land that you owned on 31 December last year is listed.
• Land that has been granted an exemption has been highlighted.
• You are not falsely claiming an exemption on any land.
• Your foreign owner status is up to date.

If your details are incorrect, update them by lodging a return in Land Tax Online before the due date on your notice of assessment.

Privacy

Your privacy is important to us. Read our privacy policy for further information on how we protect the privacy of your personal information.

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Land tax returns and objections

When should I lodge a return?

It is important that you keep your details up to date. Incorrect information can lead to delays in our correspondence, assessment errors and penalties.

Lodge a return in Land Tax Online if you:

• need to:
  • update your personal details, including foreign status
  • apply for an exemption or change an existing exemption
  • add or remove a property
  • add additional information not previously supplied that may result in an amended land tax liability, or
• believe your assessment should be amended because your circumstances have changed.

You should lodge a return on or before the due date of your assessment notice.

Lodge a return in Land Tax Online

How do I lodge an objection?

Objections to land valuations

Objections against the land value must be lodged with the NSW Valuer General within 60 days of the issue date of your notice of assessment.

Visit the NSW Valuer General's website to learn how to object to a land valuation.

Objections to the application of land tax legislation

If you believe land tax legislation has been incorrectly applied to your situation you can lodge a formal objection with Revenue NSW.

You must lodge the objection together with your reasons and supporting evidence within 60 days of the issue date of your notice of assessment.

You must still pay your land tax by the due date if you lodge an objection with Revenue NSW or the NSW Valuer General, as interest will be imposed on any overdue amounts.

If your objection is successful you will be reassessed and any payments made will be allocated to your new assessment or a refund will be issued if it results in a credit.

What you need to provide

To submit your objection, you will need to provide the following information:

• Reference number: Enter your Client ID, which can be found on correspondence we sent to you.
• Your details: Enter customer's name, contact's name, email address, phone number and select "Land tax" as the objection type.
• Message: Outline grounds for objection within 60 days of your assessment. You must provide reasons if your objections are submitted late.
• Supporting documents: You can upload files to support your objection.

The onus is on you to prove your case.

You can lodge a formal objection with Revenue NSW online by using our objection form.

Watch video

Watch the video below for more details.

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Contact the land tax team

If you have a question about land tax contact us.