What Is Land Tax and Who Has to Pay It in NSW?
Land tax in New South Wales is an annual state tax on the total unimproved value of all taxable land you own above a tax-free threshold, administered by Revenue NSW. It applies to investment properties, commercial property, vacant land and holiday homes, but your principal place of residence and primary production land are generally exempt. Liability is determined at midnight on 31 December each year (the "taxing date") — if you hold taxable land at that moment, you're liable for the following year's land tax, and the assessment is not reduced pro rata if you later sell the property.
How Is Land Tax Calculated in NSW?
Land tax is calculated on the combined value of all your non-exempt NSW landholdings, not property by property. The general tax-free threshold is $1,075,000, above which land tax is charged at $100 plus 1.6% of the value above the threshold, up to a premium threshold of $6,571,000, where a higher rate of $88,036 plus 2% of the value above that premium threshold applies. Land held by a "special trust" does not get the tax-free threshold at all — it is taxed at a flat 1.6% up to the premium threshold, then 2% above it.
What Is Exempt From Land Tax?
- Principal place of residence — the home you live in is generally exempt.
- Primary production land — see below; the most relevant exemption for rural and farming landholders.
Primary Production Land Exemption — Eligibility in Detail
Section 10AA Land Tax Management Act 1956. "Rural land" (zoned rural, rural-residential, non-urban or large-lot residential) only needs to show the dominant use is a listed primary-production activity. Non-rural land must also pass commercial-purpose tests (substantial commercial purpose, profit motive, continuous/repetitive activity). Not automatic — must be claimed on the land tax return.
This exemption is not automatic — it must be claimed on your land tax return. The test differs by zoning: land zoned rural, rural-residential, non-urban or large-lot residential only needs to show its dominant use is a genuine primary production activity, while non-rural-zoned land must also pass additional commercial tests (a substantial commercial purpose, a genuine profit motive, and continuous, repetitive activity).
Primary Production Land Tax Exemption Checker (NSW)
Answer honestly for a quick indication of whether your land is likely to qualify — this is not a substitute for lodging an actual exemption claim with Revenue NSW.
Source: Revenue NSW — primary production land exemption (see sources below).
Land Tax for Special Trusts and Foreign Owners
Land held in a "special trust" is taxed differently to land held by an individual, company or "fixed" trust — it gets no tax-free threshold and is taxed at a flat rate from the first dollar of value. A foreign owner surcharge of 5% also applies to residential land owned by a foreign person, again from the first dollar of value, for the 2025 and 2026 land tax years — a significant consideration for foreign-owned rural and investment property.
How and When Land Tax Is Assessed and Paid
Revenue NSW calculates your assessment based on land you own at midnight 31 December, and starts issuing land tax assessment notices in mid-to-late January for that tax year. Payment can be made in full or by instalments through Revenue NSW's online services.
Frequently Asked Questions
Does my home get taxed under land tax?
Your principal place of residence is generally exempt, subject to meeting the standard eligibility rules.
Is farmland automatically exempt from land tax in NSW?
No — it must be claimed on your land tax return and meet the dominant-use (and, for non-rural land, commercial-purpose) tests. Zoning alone can be enough for genuinely rural-zoned land, but is not sufficient on its own for non-rural land.
Does land tax apply per property or across my whole portfolio?
Across your whole non-exempt NSW landholding combined, not property by property.
Where can I get an exact land tax figure for my property?
This page provides general information only — use Revenue NSW's own land tax calculator, or speak with a registered tax agent, for a precise figure based on your specific land value and ownership structure.
Updated on 2026-07-12 — what changed
Initial publication of this page, verified directly against revenue.nsw.gov.au as of 12 July 2026.