NSW Land Tax 2025: Thresholds, Owner Types, Surcharges
NSW land tax 2025 overview: thresholds, base amounts, marginal rates, owner types (individual vs company/trust), and foreign surcharges.
Try the Land Tax Calculator
Run the numbers while you read and see how the concepts apply to your situation.
Overview
Land tax is charged on the taxable value of land you own in NSW, excluding your principal place of residence in most cases. Thresholds and rates vary by owner type (individuals vs companies/trusts) and can change each year. Understanding the difference between site (unimproved) value and market price is key, as assessments are based on land value determined by the Valuer General, not your purchase price. Aggregation rules can apply across multiple holdings, and surcharges may affect foreign or absentee owners.
If your combined taxable land value is near a threshold, even modest valuation changes can shift you into a higher band. Review your assessment notice and check objection timeframes if you believe the valuation is incorrect. This guide provides general context; always confirm current year thresholds and rates before making portfolio decisions.
How NSW Land Tax Works
- Thresholds determine when land tax begins.
- A base amount and marginal rate apply to the value within a band.
- Owner type may affect thresholds/rates.
Example (Illustrative)
Apply base amount + marginal rate × (land value − threshold). Check current year thresholds.
Quick Comparison — NSW vs VIC vs QLD (Illustrative)
| State | PPR exemption | Thresholds vary by owner type | Absentee/foreign surcharge |
|---|---|---|---|
| NSW | Yes (generally) | Yes | Possible for foreign/absentee |
| VIC | Yes (generally) | Yes | Absentee owner surcharge |
| QLD | Yes (generally) | Yes | Possible for foreign/absentee |
Calculator
Sources
- Revenue NSW — Land tax: https://www.revenue.nsw.gov.au
- ASIC Moneysmart — Property taxes: https://moneysmart.gov.au
FAQs
Is my home exempt?
The principal place of residence is typically exempt. Investment/secondary properties are generally taxable.
Do thresholds change?
Yes. NSW reviews thresholds periodically; always check current settings.
Companies and trusts?
Settings can differ vs individuals; verify correct owner type.
Frequently asked questions
How is NSW land tax calculated?
By applying the base amount and marginal rate to the taxable land value above the threshold.
Do I pay land tax on my home?
Generally no, if it is your principal place of residence. Investment properties are usually taxable.
Who sets the land value?
Land value is assessed by the state authority (e.g., Valuer General). It is generally the unimproved value, not the property sale price.
When are assessments issued?
Assessments are typically issued annually for the previous tax year. Check current timelines and due dates in NSW.
Related Calculators
Ready to try the Land Tax Calculator?
Use the calculator to model your scenario and make confident decisions.