Property investing
Land tax in New South Wales
The NSW land tax threshold, the full rate scale, and worked examples for an investor, checked against Revenue NSW's own figures.
Key points
- Threshold: $1,075,000 of total taxable land value for an individual.
- On $800,000 of taxable land an individual pays $0 a year at general rates.
- Your own home is generally exempt; an investment property is not.
- Land tax is charged every year you hold the land, not once like stamp duty.
NSW land tax at a glance
Land tax applies once the total taxable value of the land you own in New South Wales is more than $1,075,000. Your home is generally exempt; the tax falls on land that isn't your home, such as an investment property. The top rate is 2% of the value above $6,571,000. (Revenue NSW, verified 7 Aug 2026)
These rates apply to the 2026 land tax year. Land tax is charged every year you own the land, so on an investment property it is a holding cost, not a one-off cost like stamp duty.
New South Wales land tax rates
| Total taxable value | Land tax for the year |
|---|---|
| Up to $1,075,000 | Nil |
| More than $1,075,000, up to $6,571,000 | $100 + 1.6% of the value above $1,075,000 |
| More than $6,571,000 | $88,036 + 2% of the value above $6,571,000 |
Source: Revenue NSW (Revenue NSW, verified 7 Aug 2026) (Revenue NSW, verified 7 Aug 2026).
Worked examples
One owner, Australian resident, general rates, at a total taxable value of $500,000, $800,000, $1,200,000 and $2,000,000. The value is the figure after exemptions and the state's own valuation rules, not the price you paid.
| Total taxable value | Land tax | Working |
|---|---|---|
| $500,000 | $0 | below the threshold: nil |
| $800,000 | $0 | below the threshold: nil |
| $1,200,000 | $2,100 | $100 + 1.6% of the $125,000 above $1,075,000 = $2,100 |
| $2,000,000 | $14,900 | $100 + 1.6% of the $925,000 above $1,075,000 = $14,900 |
The same $800,000, owned differently
| Owner | Land tax |
|---|---|
| An individual (general rates) | $0 (Revenue NSW, verified 7 Aug 2026) |
| A foreign owner, including the surcharge | $40,000 (Revenue NSW, verified 22 Oct 2026) |
Checked against Revenue NSW's own examples
The same scale reproduces every worked example the revenue office publishes on its rate pages, to the dollar:
- $1,100,000 at general rates: published $500, our working gives $500 (Revenue NSW, verified 22 Oct 2026)
- $1,200,000 at general rates: published $2,100, our working gives $2,100 (Revenue NSW, verified 22 Oct 2026)
- $1,200,000 at surcharge land tax alone: published $60,000, our working gives $60,000 (Revenue NSW, verified 22 Oct 2026)
How the value is worked out
Revenue NSW taxes the average of the land's value over the current and two previous years, each value set on 1 July of the year before. Its own 2026 example averages $1,050,000, $1,100,000 and $1,150,000 to $1,100,000, which is $25,000 over the threshold and $500 of land tax. (Revenue NSW, verified 22 Oct 2026) The general and premium thresholds are frozen for land tax years after 2024, so a rising land value is no longer offset by a rising threshold. (Revenue NSW, verified 7 Aug 2026)
Your home
A principal place of residence is generally exempt, with conditions that differ by state. (Revenue NSW, verified 7 Aug 2026) Read the exemption rules on the revenue office's own page before relying on one, especially for a home that is partly rented, owned with others or held in a trust or company.
Foreign owners, trusts and companies
A foreign person who owns residential land pays surcharge land tax of 5% of its land value from the 2025 land tax year, with no tax-free threshold, on top of ordinary land tax. (Revenue NSW, verified 22 Oct 2026) Most family, discretionary and unit trusts ("special trusts") get no tax-free threshold at all. (Revenue NSW, verified 11 Aug 2026)
For every state side by side, see land tax by state; for surcharges and trusts across all states, see land tax for investors.
Common questions
Is NSW land tax charged on the land value or the property value?
On the land value, averaged over the current and two previous years, not on what the property would sell for.
What is the NSW land tax threshold for 2026?
$1,075,000 of taxable land value (the general threshold), with a higher rate above the $6,571,000 premium threshold. Both are frozen for land tax years after 2024.
Practical checklist
Before you budget for land tax in New South Wales
- Add up the taxable value of all the land you already own in New South Wales, not just the new property
- Check whether the property, or the buyer, is a trust, company or foreign person: the rates differ
- Check the principal place of residence conditions if any part of the home will be rented
- Confirm the figure with Revenue NSW's own calculator or assessment before relying on it
Questions for a professional
- What will my total taxable land value in New South Wales be once this property is added?
- Does my ownership structure (individual, joint, trust or company) change the rate I pay?
- Do any exemptions or concessions apply to this land?
Official resources
- Revenue NSW: Land tax thresholds and rates
- Revenue NSW: What is surcharge land tax?
- Revenue NSW: Principal place of residence exemption
Important limitations: General information only, not tax or financial advice, and not a statement of your own land tax. The worked examples use the published rate scale on a single taxable value; your assessment depends on all the land you own, exemptions, ownership shares and the valuation the revenue office uses. Amounts are shown to the cent; the revenue office's own notice decides the amount payable.
Sources and methodology
- Land tax thresholds and rates | Revenue NSW — Revenue NSW (retrieved 7 Aug 2026). Licence: CC BY 4.0
- What is surcharge land tax? | Revenue NSW — Revenue NSW (retrieved 22 Oct 2026). Licence: CC BY 4.0
- Land tax thresholds and rates | Revenue NSW — Revenue NSW (retrieved 22 Oct 2026). Licence: CC BY 4.0
- Principal place of residence exemption | Revenue NSW — Revenue NSW (retrieved 7 Aug 2026). Licence: CC BY 4.0
- How trusts are assessed for land tax | Revenue NSW — Revenue NSW (retrieved 11 Aug 2026). Licence: CC BY 4.0
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.
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