Short answer
Land tax is a yearly NSW tax on land you own, worked out at midnight on 31 December each year.
Your own home is generally exempt. Land tax usually applies to investment property. For most individual owners it applies only when the total land value of their taxable land is above $1,075,000. Some trusts and foreign owners pay land tax with no threshold.
Above the threshold the rate is $100 plus 1.6% of the value above $1,075,000.
Current as at 2 November 2026Who is required to pay land tax in NSW?
Owners of land in NSW whose taxable land, added together, is worth more than the threshold.
Land tax usually applies to investment properties. Your home and land used for primary production are generally exempt.
Land owned in some trusts, and land owned by foreign persons, is taxed differently. See below.
The thresholds and rates
- General threshold: $1,075,000. Below it, no land tax.
- Above the general threshold: $100, plus 1.6% of the value above $1,075,000.
- Premium threshold: $6,571,000. Above it: $88,036, plus 2% of the value above $6,571,000.
These thresholds have been fixed since the 2025 land tax year and apply for 2026.
Example: investment land with a land value of $1,500,000 attracts land tax of $6,900 a year.
How land value is worked out
Land tax is based on the land value set by the NSW Valuer General, not the price you paid or the value of the building.
Revenue NSW uses an average of the land values over 3 years.
The tax for each year is worked out on the land you own at midnight on 31 December.
Your home is exempt
The land you live in as your main home is generally exempt. Only one main home can be claimed, and one exemption per family.
If you buy your home after 1 July, it can still be exempt if you live in it on 31 December.
If you buy a new home and still own your old one on 31 December, you may get a concession on both for one land tax year, if you took ownership of the new home between 1 July and 31 December and start living in it before the next 31 December.
If you buy land to build your home, a concession can apply while you build, for up to 4 years (longer for exceptional delay), if you then live there continuously for at least 6 months once building is finished.
Do I need to pay land tax on an investment property in NSW?
Yes, if the total land value of your taxable land is above $1,075,000.
Below the threshold, an individual owner pays no general land tax. Special trusts and foreign owners are taxed differently.
Stamp duty comes first
Land tax is yearly. Stamp duty is paid once, when you buy. Enter the price to see it on the 2026-27 rates.
Foreign owners
Foreign persons who own residential land in NSW may pay surcharge land tax of 5% of the land value, with no threshold.
The home exemption does not apply to surcharge land tax.
Land tax when you buy
Unpaid land tax is a first charge on the land. A new owner can become responsible for a previous owner's unpaid land tax.
That is why the seller must give the buyer a current land tax clearance certificate before settlement. We check it, and obtain an updated one where needed.
Whether land tax is adjusted between buyer and seller at settlement depends on the contract. We check this before you sign.
Can you pay land tax instead of stamp duty in NSW?
No, not any more. First Home Buyer Choice let some buyers pay a yearly property tax instead of stamp duty. It closed to new buyers from 1 July 2023.
Common questions
Who is required to pay land tax in NSW?
Owners whose taxable land owned at midnight on 31 December has a combined land value above $1,075,000. Some trusts and foreign owners pay with no threshold. Your home is generally exempt.
Do I pay land tax on my home in NSW?
Generally no. Land you live in as your main home is exempt, subject to the rules.
Do I need to pay land tax on an investment property in NSW?
Yes, if the total land value of your taxable land is above $1,075,000. The rate is $100 plus 1.6% of the value above that.
Can you pay land tax instead of stamp duty in NSW?
No. That option, First Home Buyer Choice, closed to new buyers from 1 July 2023.
Buying an investment property? Send us the contract before you sign. We check the land tax position.
Fred Kalouche, Principal Solicitor, Fred Kalouche & Associates
A solicitor for over 16 years. Acts for buyers across NSW. 6 Russell Street, Granville NSW 2142.
This article is general information only. It is not legal advice for your situation.