Land Tax NSW 2026

KEY TAKE-OUTS:

• Land Tax in NSW applies to the combined land value of taxable properties (excluding your principal place of residence).

• Land Tax in NSW Property Law is assessed annually as at 31 December and applies to the entire following calendar year.

• 2026 Land Tax thresholds determine whether you are liable to pay tax based on total land value.

• If “Land tax is adjustable” is marked “Yes” on a Contract for Sale, the purchaser may reimburse the vendor for part of the year’s land tax at settlement.

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What is Land Tax?

Land Tax in NSW is an annual tax levied by Revenue NSW on the combined land value of taxable properties, excluding your principal place of residence.

Revenue NSW administers Land Tax levies to property owners based on the combined value of their taxable land (investment properties, which excludes their principal place of residence). It is calculated on the land value (not including the building or other improvements on the land) and usually applies to investment properties, commercial properties and vacant land.

 

How is Land Tax Calculated?

Land Tax is assessed at midnight on 31 December each year and applies to the entire following calendar year. The assessment covers the full period from 1 January to 31 December and is not adjusted on a pro rata basis.

In practical terms, if you are liable for Land Tax on a property and sell it in June, you are still responsible for paying the tax for the whole year. There is no refund or reduction for the portion of the year during which you no longer own the property.

 

2026 Land Tax Thresholds

The land tax threshold is the minimum total property value you can hold before land tax applies. If the combined value of all your taxable land exceeds this threshold, you’ll be liable to pay land tax. If it falls below the threshold, no land tax is payable.

Below are the 2026 land tax thresholds. You can also view the latest figures on the Revenue NSW website via the link below. Land tax thresholds and rates | Revenue NSW:

Land Tax for Foreign Investors

If you’re classified as a foreign person, surcharge Land Tax applies to the total land value of all residential property you own. There is no tax-free threshold for surcharge Land Tax — it applies regardless of the value of your land holdings.

From 2025 onwards, the surcharge land tax rate is 5% of the combined land value of all your residential properties.

You can visit the Revenue NSW website for more information – What is surcharge land tax? | Revenue NSW

 

Land Tax Calculator

The online calculator estimates how much Land Tax you may owe.

What you need to know before you get started:

1. The combined land value of all your taxable land. You can access this information online via the following link – https://www.nsw.gov.au/housing-and-construction/land-values-nsw/how-to-find-land-values-nsw

2. Your foreign status to determine if you are exempt from surcharge tax.

Once you have these details, simply enter the information into the online Land Tax calculator to receive an estimate of your potential liability – Land tax calculator

 

What does it mean when ‘Land Tax is adjustable’ is marked “Yes” on a Contract for Sale?

• When you are selling

If your conveyancer has selected “Yes” to “Land tax is adjustable” in your Contract for Sale, it indicates that the property is not your principal place of residence and is currently subject to land tax.

By marking “Yes,” the land tax will be adjusted at settlement. This means the purchaser will reimburse you for the portion of land tax that relates to the period from settlement through to the end of the land tax year, effectively covering the time they own the property.

 

• When you are buying

If you’re purchasing a property and the Contract for Sale shows “Land tax is adjustable” as “Yes,” this means you will be required to reimburse the vendor for a portion of their land tax at settlement, even if you intend to live in the property as your principal place of residence.

If you’re still within your cooling-off period, you may request that this be amended to “No” so that land tax is not adjusted at settlement.

 

Not sure if you should be paying Land Tax?

If you have not received an assessment notice and believe you may be liable for Land tax, please update your land tax details (lodge a return) in Land Tax Online – https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/land-tax/lodge-return/update-land-tax-details

 

The experienced Property & Conveyancing team at Coutts Lawyers & Conveyancers can help ensure you understand your land tax obligations.

Contact us on 1300 COUTTS to speak with a property law expert today.