Whether you pay land tax on your property depends on:
If you must pay land tax, you’ll have to register first.
Generally, you don't pay land tax on:
Read more about land tax exemptions and concessions.
You can use the residential property buyer tool to find out the taxes and duties you may need to pay, as well as exemptions and grants that you are entitled to receive.
Apart from the above exemptions, land tax applies to property you own with total taxable value above the land tax threshold. You may have to pay land tax if you own, or jointly own:
Land tax applies regardless of whether income is earned from the land.
Land tax is calculated on the total value of all your taxable land above the land tax threshold.
The threshold for the land value changes each year and is applied as follows.
|Year||General threshold||Premium threshold|
You pay tax based on the combined value of all taxable land you own, not on each individual property. If the combined value of your land does not exceed the threshold, no land tax is payable.
If the value is above the land tax threshold, you pay tax for the amount over the threshold, plus a base tax of $100.
Your liability for each year is based on the value of all property you owned on 31 December in the previous year. Any changes to the land you own in the current year will only affect how much you pay next year.
If the ownership of any of your land changes, you’ll need to notify us using Land tax online.
(A minus B) multiplied by (C plus D) = land tax payable.
(A minus B) multiplied by (C plus D) = total premium land tax payable.
A multiplied by B = total special trust land tax payable.
Note: A premium land tax marginal rate of 2% applies for special trusts on the total taxable land value above $4,231,000.
Every year, the Valuer General determines the value of all land in NSW.
Values are determined as at 1 July for the upcoming land tax year, based on the average value from the current year and the past two years.
When a parcel of land has been created less than three years ago – for example, through a subdivision or amalgamation – Revenue NSW can only take into consideration the years after it was created.
|Year||Your land value|
($830,000 + $910,000 + $930,000) / 3 |
Your average land value for land tax purposes in 2019 is $890,000.
Find out more about the method for valuing land.
Residential land includes any of the following.
|Parcel of land||On which there are one or more dwellings, or on which there is a building under construction that, when completed, will constitute one or more dwellings.|
|Strata lot||If it is lawfully occupied as a separate dwelling, or suitable for lawful occupation as a separate dwelling.|
|Utility lot||If its use is restricted to the owner or occupier of a strata lot.|
|Land-use entitlement||If it gives the holder of the land-use entitlement to occupy a building, or part of a building, as a separate dwelling – eg company title and residential flats.|
|Parcel of vacant land||Zoned or otherwise designated for use for residential or principally for residential purposes.|
Residential land doesn't include land used for primary production that is exempt from land tax.
The surcharge applies if a building has both residential and commercial purposes. In this case, an apportionment factor is used to apportion the land value.