Land Tax Calculator NSW 2025–26 | Free NSW Calculator

Land tax in New South Wales is an annual tax on the total taxable value of investment land you own in the state. It is assessed by Revenue NSW based on the unimproved (site) value of your land - not the market value and not including buildings. Your principal place of residence is generally exempt. The assessment date is 31 December each year.

The current tax-free threshold for individual owners in New South Wales is $1,075,000. Land valued below this threshold is not subject to land tax. Above the threshold, progressive rates apply up to a top marginal rate of 2.0%.

New South Wales land tax rates and brackets

The following table shows the current land tax rates for individual owners in New South Wales. Company and trust rates may differ - check Revenue NSW for entity-specific rates.

Source: Revenue NSW . Retrieved 9 Feb 2026. Individual owner rates shown.

NSW thresholds are now fixed

From 1 January 2025, NSW land tax thresholds are fixed at the current levels. Previously, thresholds were adjusted annually based on changes in land values across the state. The NSW Government has committed to reviewing these fixed thresholds by 1 June 2027. This means the $1,075,000 general threshold and $6,571,000 premium threshold will not change in the short term.

Land Tax Threshold NSW 2025-26

The NSW land tax general threshold is $1,075,000 for the 2024 land tax year (assessed on values as at 31 December 2024, payable in 2025). The premium threshold is $6,571,000. These thresholds determine when you start paying land tax and at what rate.

Below $1,075,000: No land tax payable. Your investment land in NSW is below the tax-free threshold. You still need to lodge a land tax return if Revenue NSW has sent you an assessment notice.

$1,075,000 to $6,571,000 (general rate): Tax is calculated as $100 plus 1.6% of the value above the threshold. For example, land valued at $1,500,000 would attract $100 + ($425,000 x 1.6%) = $6,900 in land tax.

Above $6,571,000 (premium rate): Tax is $88,036 plus 2.0% of the value above $6,571,000. The premium rate applies to the highest-value landholdings.

These thresholds were fixed from 1 January 2025, replacing the previous annual indexation system. The NSW Government has committed to reviewing the fixed thresholds by 1 June 2027. Unlike South Australia, which adjusts thresholds every year based on property value changes, NSW thresholds will remain stable in the short term.

Land tax is assessed on the combined taxable value of all investment land you own in NSW (excluding your principal residence). If you own multiple investment properties, the land values are aggregated before applying the threshold and rates. Use the calculator above to estimate your land tax based on your total taxable land value.

How NSW Land Tax Aggregation Works

One of the most common surprises for NSW property investors is how land tax aggregation pushes them above the threshold when each individual property would sit below it. Revenue NSW adds together the taxable land value of every investment property you own in the state (your principal residence is excluded).

Worked example: two Sydney investment properties

Property A: Investment unit in Parramatta with a land value of $450,000.
Property B: Investment townhouse in Liverpool with a land value of $650,000.

Combined taxable land value: $450,000 + $650,000 = $1,100,000.

This is above the $1,075,000 threshold. The land tax is: $100 + ($1,100,000 - $1,075,000) x 1.6% = $100 + ($25,000 x 0.016) = $100 + $400 = $500.

Neither property alone would trigger land tax (both are well below $1,075,000), but together they cross the threshold. An investor adding a third property would see the tax increase significantly because the entire amount above the threshold is taxed.

Worked example: three properties approaching premium rate

An investor with three NSW properties having land values of $1,200,000, $900,000, and $800,000 has a combined taxable land value of $2,900,000.

Land tax: $100 + ($2,900,000 - $1,075,000) x 1.6% = $100 + ($1,825,000 x 0.016) = $100 + $29,200 = $29,300. The effective rate on the total land value is approximately 1.01%.

NSW Land Tax Compared With Other States

NSW has the highest tax-free threshold in Australia at $1,075,000. This means a single property investor with a modest land holding often pays no land tax in NSW, while the same land value in Victoria (threshold $50,000) or Queensland (threshold $600,000) would trigger a bill.

However, once you cross the NSW threshold, the 1.6% general rate is competitive with other states. Here is how a $1,500,000 total land value compares across major states:

• NSW: $6,900 (effective rate 0.46%)
• Victoria: approximately $9,150 (effective rate 0.61%) — plus COVID debt surcharge
• Queensland: $9,500 (effective rate 0.63%)
• South Australia: $3,335 (effective rate 0.22%)
• Western Australia: approximately $4,350 (effective rate 0.29%)

At this land value, SA offers the lowest land tax and NSW sits mid-range. Victoria is the most expensive, partly due to the temporary COVID-19 debt surcharge (2024–2033). Use the all-states land tax calculator to compare any land value across all eight jurisdictions.

NSW Foreign Owner Land Tax Surcharge

Foreign persons (including foreign-owned companies and trusts with foreign beneficiaries) pay an additional 5% surcharge on the taxable value of all their residential land in NSW. This surcharge is calculated on each piece of residential land individually — not aggregated — and there is no tax-free threshold for the surcharge. This means a foreign owner with a single residential investment property valued at $800,000 (below the general threshold) would pay $0 in standard land tax but $40,000 in foreign owner surcharge.

NSW Land Tax for Trusts and Companies

Companies and trustees are subject to land tax at the same general rates as individuals (1.6% general, 2.0% premium), using the same thresholds. However, trusts that do not have all their beneficiaries disclosed to Revenue NSW may be subject to a surcharge rate of 2.0% (in addition to the standard rate), effectively doubling the land tax payable. If you hold investment property through a trust, ensure beneficiary details are lodged with Revenue NSW.

Investment Property Costs Beyond Land Tax

Land tax is one of several holding costs for NSW property investors. When modelling the full cost of owning an investment property, also consider:

• Stamp duty: A one-off cost at purchase. Use the NSW stamp duty calculator to estimate your upfront duty.
• Negative gearing: If your rental income does not cover expenses (including land tax), the loss may be tax-deductible. Use the negative gearing calculator to model your after-tax position.
• Capital gains tax: When you sell, CGT applies to the profit. Use the CGT calculator to estimate your liability including the 50% discount.
• Depreciation: Div 40 (plant and equipment) and Div 43 (building) deductions can reduce your taxable income. Use the depreciation calculator to estimate.
• Council rates, water rates, strata levies, insurance, and property management fees are all deductible expenses for investment properties.

Land value: $1,500,000

Estimated land tax: $6,900

For land valued at $1,500,000 in NSW: the first $1,075,000 is tax-free. The remaining $425,000 is taxed at 1.6%, giving $100 + ($425,000 x 0.016) = $100 + $6,800 = $6,900. The effective rate on the total land value is approximately 0.46%.

Use the calculator above to estimate land tax for your specific land value. The calculator also shows how New South Wales compares with other Australian states and territories.

City scenario: Sydney

A Sydney investor with taxable land around Sydney Metro can quickly move above the NSW threshold once multiple properties are aggregated.

If the taxable land value in your Sydney scenario is around $1,500,000, this page estimates annual land tax around $6,900 under current settings.

New South Wales land tax exemptions

The following types of land are generally exempt from land tax in New South Wales. Specific conditions and eligibility requirements apply to each exemption - check Revenue NSW for full details.

• Principal place of residence (PPR)
• Land used for primary production (farming)
• Retirement villages
• Certain boarding houses
• Land owned by charitable institutions
• Land below the $1,075,000 threshold