Pay NSW land tax
NSW land tax applies on aggregated unimproved land value above $1.075M general threshold (2026).
Who must comply
Individuals, joint owners, companies and trustees owning non-exempt land in NSW with a combined land value above $1,075,000 at midnight on 31 December, whether or not the land earns income. Joint owners claim one threshold for land owned together, and land held in special or discretionary trusts or by related companies may not receive the threshold at all.
What triggers it
Owning taxable land at the 31 December taxing date, for example on first exceeding the threshold, buying or inheriting land, renting out a former home, or holding rural land not used for primary production.
When due
Annually: each assessment notice allows 60 days to pay in full or set up a payment plan. Owners must keep land and contact details current with Revenue NSW and lodge a return in Land Tax Online if they believe they are liable but have not received a notice.
Evidence required
Land tax assessment notices; Land Tax Online returns and ownership updates; principal place of residence and primary production exemption claims; trust and company ownership records supporting threshold eligibility; clearance certificates on buying or selling land.
Max penalty
Interest and penalty tax apply to unpaid or under-declared land tax; Revenue NSW investigates owners who may be liable, and owners who update their details before an investigation may avoid interest or penalty tax. Unpaid land tax remains a charge on the land
Who must comply with this? The applicability test by industry, business structure and size.
Summary
NSW land tax under the Land Tax Act 1956 (NSW) is an annual tax on the unimproved value of all non-exempt land a person owns in NSW at midnight on 31 December. Revenue NSW applies a 3-year average of the land values set by the NSW Valuer General each 1 July. Tax is payable when combined taxable land value exceeds the general threshold of $1,075,000, at $100 plus 1.6% of the value above it; land above the premium threshold of $6,571,000 is taxed at $88,036 plus 2% of the excess. Both thresholds have been frozen since the 2024 land tax year. The owner's home and primary production land are generally exempt. Tax is charged for the full year and is not reduced if the land is sold during it, and unpaid land tax attaches to the land and passes to a purchaser. Foreign persons owning residential land pay surcharge land tax with no tax-free threshold.
Enforced by
Source legislation
Topics
Related
- NSWPay NSW transfer duty on residential property acquisitionsVariable transfer duty rates; foreign purchaser additional duty 9%.
- VICPay Victorian land tax (including absentee owner surcharge)VIC land tax applies on aggregated taxable value above $50K (general) / $25K (trust); absentee owner +4% surcharge.
- QLDPay Queensland land taxQLD land tax applies on aggregated land value above $600K (individuals) / $350K (companies + trusts).
- NSWPay NSW payroll tax when threshold metNSW: 5.45% on Australian wages above the $1.2 million tax-free threshold (FY2026-27).
- QLDPay Queensland payroll tax when threshold metQLD: 4.75% on Australian wages above the $1.3 million tax-free threshold (FY2026-27).
- ACTPay ACT payroll tax when threshold metACT: 6.75% on Australian wages above the $1.75 million tax-free threshold (FY2026-27).
Frequently asked questions
- Who must comply with NSW land tax?
- Individuals, joint owners, companies and trustees owning non-exempt land in NSW with a combined land value above $1,075,000 at midnight on 31 December, whether or not the land earns income. Joint owners claim one threshold for land owned together, and land held in special or discretionary trusts or by related companies may not receive the threshold at all.
- What triggers NSW land tax?
- Owning taxable land at the 31 December taxing date, for example on first exceeding the threshold, buying or inheriting land, renting out a former home, or holding rural land not used for primary production.
- When is NSW land tax due?
- Annually: each assessment notice allows 60 days to pay in full or set up a payment plan. Owners must keep land and contact details current with Revenue NSW and lodge a return in Land Tax Online if they believe they are liable but have not received a notice.
- What is the maximum penalty for NSW land tax?
- Interest and penalty tax apply to unpaid or under-declared land tax; Revenue NSW investigates owners who may be liable, and owners who update their details before an investigation may avoid interest or penalty tax. Unpaid land tax remains a charge on the land
- What evidence is required for NSW land tax?
- Land tax assessment notices; Land Tax Online returns and ownership updates; principal place of residence and primary production exemption claims; trust and company ownership records supporting threshold eligibility; clearance certificates on buying or selling land.
Source: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/land-tax/understanding-land-tax/what-is-land-tax. Rules Mate is not a law firm. Always verify against the live regulator source before acting.