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If you own property in NSW you may need to pay annual land tax to the NSW Government depending on how your property is used and its unimproved land value.
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Land tax overview
Land tax is a state tax that is levied on some landowners each year.
In New South Wales (NSW) land tax is based on unimproved land values provided by the NSW Valuer General.
Not all landowners pay land tax. Some landowners may be exempt depending on how their land is used. A threshold amount may be applied to the land value which can determine whether a landowner is liable for land tax.
Land tax is calculated on the unimproved land value of all the non-exempt land you own in NSW at midnight on 31 December each year.
Please note, land tax is different from other government charges levied on landowners, such as:
On 31 December 2024 Chris owned the following properties in NSW.
Property A: House in Cowra where he lives with his family (principal place of residence). The average land value over 3 years is $529,000.
Property B: House in Goulburn that he rents out to tenants. The average land value over 3 years is $650,000.
Property C: Vacant block of land near Nowra. The average land value over 3 years is $700,000.
The combined land value of the two non-exempt properties (Property B + Property C) owned by Chris is $1,350,000 which is more than the general land tax threshold of $1,075,000. His home (Property A) is not included as it is exempt from land tax.
Chris is liable for land tax in NSW.
How ownership types affect thresholds
The way a property is owned can affect how the land tax threshold is applied.
For example, when you own property with others, you can only claim one threshold for land owned together.
If a property is held in certain types of trusts or by related companies, the owner may not qualify for the land tax threshold.
Visit the types of owners section for more details on how thresholds are applied to individual and joint owners, trusts, and companies.
There is no tax-free threshold for surcharge land tax. Unless they qualify for an exemption, foreign persons who own residential property in NSW must pay surcharge land tax regardless of the land value of their property.
Land liable for land tax
Land tax applies to:
vacant land, including rural land
land where a house, residential unit or flat has been built
holiday homes
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, and
the portion of a property that is opted into property tax owned by a not included owner, when the total land value of all properties owned is above the land tax threshold.
How much is land tax in NSW
To calculate how much land tax you will pay, you first need to know the unimproved land value of your properties.
The NSW Valuer General determines the value of all land in NSW on 1 July each year. For guidance on how to find your land values visit the NSW Valuer General’s website.
Revenue NSW then uses a 3-year average of these land values to determine how much land tax is paid by each landowner.
Thresholds and rates
You only pay tax on the total land value above the general land tax threshold, which is currently $1,075,000.
For the general threshold, the current land tax rate is $100 plus 1.6% of the land value above $1,075,000.
There is also a premium threshold rate for land that is valued over $6,571,000.
Land tax is based on the value of the land, not what is built on it. This unimproved value provided by the NSW Valuer General excludes things like:
buildings or other structures
improvements such as fences or driveways, and/or
other developments such as landscaping or pools.
This is why the land values used for land tax may be different from:
what you paid for your property, or
what you could sell your property for today.
Estimate your land tax
Individual landowners, property investors and property professionals can use the Land Tax Calculator to estimate their land tax and surcharge land tax liability.
Land tax is an annual tax meaning it must be paid each year you are considered liable.
If you are liable for land tax, you will receive an annual assessment notice from Revenue NSW. Read more about assessment notices.
You will have 60 days to pay in full or set up a payment plan. Read more about paying land tax.
All landowners liable for land tax and/or surcharge land tax in NSW are legally required to keep their land and contact details up to date with Revenue NSW.
If you have not received an assessment notice and believe you may be liable, update your land tax details (lodge a return) in Land Tax Online.
Revenue NSW investigates landowners who may be liable for land tax and/or surcharge land tax. Landowners who update their tax details prior to an investigation may avoid interest or penalty taxes. Learn more about land tax investigations.
Land tax when buying or selling property
When buying or selling land in NSW, it is crucial to resolve any outstanding land tax before completing the transaction. Any unpaid land tax will transfer with the property to the new owner.
As a property seller or purchaser, you must:
verify that all land tax obligations are fully paid before finalising the sale, and
understand that existing land tax liabilities are attached to the property, not the previous owner.
To protect your interests, consult with a solicitor or conveyancer to ensure complete compliance with NSW land tax laws.
Why have I received a letter or assessment notice for the first time?
Revenue NSW may have received information from other government agencies showing you have become liable for land tax and/or surcharge land tax.
Common situations include:
The unimproved land value of your non-exempt property exceeds the general land tax threshold for the first time.
Buying, acquiring or inheriting property with a land value above the land tax threshold.
Purchasing vacant land for construction that may not qualify for an exemption.
Renting out your previous home (principal place of residence).
Earning income from your property during an extended absence.
Owning rural land not used for primary production.
Being a foreign owner who has purchased residential land in NSW, making you liable for surcharge land tax.
Living overseas for more than 165 days in a calendar year (166 days in a leap year) if you are an Australian permanent resident, making you liable for surcharge land tax for foreign persons.
If you have received a letter or assessment notice and believe you may be exempt, you can update your land tax details (lodge a return) in Land Tax Online.
Land tax threshold freeze
From 1 January 2025 land tax thresholds will be fixed. The NSW Treasurer will assess these thresholds by 1 June 2027. As land values increase more landowners will find themselves liable for land tax for the first time. Read more about land tax thresholds and rates.
Understanding land tax laws
Land tax is a state tax, it is not managed by the Commonwealth Government or any of its agencies, such as the Australian Taxation Office or Services Australia.
Land tax laws are different in each state/territory. If you need help with land tax in other jurisdictions, contact the government of the state/territory in which your land is located.
Revenue NSW is responsible for collecting land tax and surcharge land tax in NSW in accordance with several pieces of legislation, including the:
