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How individuals and joint owners are assessed for land tax
Learn how Revenue NSW assesses your land tax and surcharge land tax when you are an individual or joint owner of property in NSW. Includes calculation examples.
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Revenue NSW uses land values to assess liability for:
land tax, and
surcharge land tax for foreign persons.
Revenue NSW uses unimproved land values provided annually by the NSW Valuer General. Unimproved value means the value of the land itself, excluding buildings or other improvements.
We calculate assessments on the land value of all taxable property owned as of midnight 31 December (taxing date).
Tax is charged for the full year following the taxing date. Assessments are not pro rata, meaning they cannot be proportionally limited to the period of ownership during the year. For example, if you sell your taxable property during the year, you will still owe tax for the full year.
If you own property as an individual or jointly with others, Revenue NSW assesses your liability based on:
the total value of all taxable land you own individually, and
your share of any jointly owned properties.
If you have an interest in jointly owned land, your individual tax assessment will include:
your interest percentage of that land, and
100% of any land you own individually (if any).
Examples
The examples below look at land tax customers who own land in New South Wales (NSW) that is valued over the land tax threshold. These landowners do not own land in any joint capacity.
For examples of how we assess individuals who also own property jointly, see the example under joint owners.
General land tax
This example looks at how Revenue NSW assesses land tax for Teagan, who owns an investment property on her own. Her property is used for non-exempt purposes.
Landowner
Teagan
Property ownership
“Property A” Teagan owns 100% Land value = $2,175,000
Calculation
$2,175,000 (total land value) - $1,075,000 (general land tax threshold) x 1.6% (general land tax rate) + $100= $17,700
Land tax payable
$17,700
Premium land tax
This example looks at how Revenue NSW assesses land tax for Chris, who individually owns two properties.
Since the combined land value of his properties exceeds the premium threshold, we apply the premium rate to determine his land tax liability.
Landowner
Chris
Property ownership
“Property D” Chris owns 100% Land value = $3,500,000
“Property E” Chris owns 100% Land value = $3,500,000
Calculation
$7,000,000 (total land value) - $6,571,000 (premium land tax threshold) x 2% (premium land tax rate) + $88,036 (maximum general land tax payable) = $96,616
Land tax payable
$96,616
Video
This video provides an overview of the calculation used for secondary deductions for individuals for land tax.
When people share ownership of land, Revenue NSW treats them as joint owners for land tax purposes.
Revenue NSW assesses the land tax of joint owners using the following two-stage process.
1
Identify the primary taxpayer
Joint owners of land are treated as a single entity called the primary taxpayer.
This means that joint owners can only claim one land tax threshold for the land they own together.
2
Assess secondary deductions
Each joint owner, known as a secondary taxpayer, is also assessed separately as an individual.
This assessment includes:
the individual’s share in all jointly owned properties, and
any properties they own individually.
To avoid double taxation, each secondary taxpayer is entitled to a secondary deduction in their separate assessments.
Example
John and Jane own an investment property together. John and Jane are referred to as the primary taxpayer.
Landowners
John and Jane
Property ownership
“Property A” John and Jane own 100% of the property Land value = $1,200,000
Calculation
$1,200,000 (total land value) - $1,075,000 (general land tax threshold) x 1.6% + $100 (general land tax rate) = $2,100
Land tax payable
$2,100
Secondary deduction calculation for John
John will receive two assessment notices since he owns one property individually and another property jointly with Jane.
The second notice will include his ownership interests in both properties combined. To avoid double taxation on the jointly owned property with Jane, John (as the secondary taxpayer) will receive a secondary deduction.
Landowner
John
Property ownership
“Property A” (owned with Jane) John owns 50% Land value = $600,000 (John’s 50% share of the total land value)
“Property B” John owns 100% Land value = $550,000
An individual assessment applies to John's 50% share of Property A (50% of $1,200,000 = $600,000) and to the total value of Property B ($550,000) combined.
Individual calculation
$1,150,000 (total land value) - $1,075,000 (general land tax threshold) x 1.6% + $100 (general land tax rate) = $1,300
Secondary deduction calculation “A”
(Interest in primary ÷ total primary) x tax in primary
($600,000 ÷ $1,200,000) x $2,100 = $1,050
Secondary deduction calculation “B”
(Interest in primary ÷ total secondary) x tax in secondary
($600,000 ÷ $1,150,000) x $1,300 = $678.26
Land tax payable
$1,300 – $678.26 = $621.74
The allowable deduction ($678.26) is the lesser of the two calculations and this amount is deducted from the total amount of land tax ($1,300) in individual assessment.
Exempt jointly owned land
If multiple people own a property together and at least one owner lives there as their principal place of residence, all owners can receive a land tax exemption for that specific property – even those who do not live there.
However, the owner(s) living in the property must own at least 25% of it to qualify.
This law extends to most other NSW land tax exemptions and concessions, since they are tied to the property itself rather than the individual owners.
If you are a foreign person who owns residential land in NSW, you must pay surcharge land tax in addition to any land tax you may already pay.
Surcharge land tax does not have a tax-free threshold.
The current surcharge land tax rate is 5% of the total land value of your property.
When a foreign person jointly owns land, they only pay surcharge land tax on their share of the property.
For example, if a property has two equal owners (50% each) and only one is a foreign person, Revenue NSW will only charge surcharge land tax on the foreign owner's 50% portion which will be issued in a secondary assessment.
The non-foreign owner is not liable for any surcharge land tax.
Read more about surcharge land tax , including the definition of a foreign person and residential land.
Example
Joint owners
This example looks at how Revenue NSW assesses land tax and surcharge land tax for a property jointly owned in equal shares by:
Alexandra (a foreign person), and
Michael (an Australian citizen).
While they share equal responsibility for the standard land tax payment, Alexandra must also pay surcharge land tax on her 50% share as a foreign owner.
Land tax calculation
Landowner
Alexandra and Michael
Property ownership
Property F Alexandra and Michael own 100% in equal shares (50% each) Land Value = $2,100,000
Calculation
$2,100,000 (total land value) - $1,075,000 (general land tax threshold) x 1.6% + $100 (general land tax rate) = $16,500
Land tax payable
$16,500
Surcharge land tax calculation
Foreign owner
Alexandra
Property ownership
Property F Alexandra owns 50% Land Value = $1,050,000 (50% of the total land value)
Calculation
$1,050,000 (proportionate land value) x 5% (2025 surcharge land tax rate) = $52,500
