Land Tax NSW 2026-27: Rates, Thresholds and Calculator Guide

New South Wales has the most generous land tax threshold of any mainland Australian state — $1,075,000 in taxable land value for 2026-27. Many Sydney investors with a single investment property fall below this and pay no land tax at all. But the aggregation rule means owning multiple properties can push you over the threshold quickly, even if no single property does.

Use the Land Tax Calculator to estimate your NSW land tax liability.

Quick answer: The NSW land tax threshold is $1,075,000. On a single $1,500,000 land value, the 2026-27 bill is $100 + 1.6% × ($1,500,000 − $1,075,000) = $6,900. Foreign investors pay an additional 4% surcharge on total land value.

NSW land tax rates and thresholds 2026-27

Source: Revenue NSW, revenue.nsw.gov.au. Rates shown are for individuals and most trusts.

Taxable land value	Annual land tax
Under $1,075,000	Nil
$1,075,001 – $6,571,000	$100 + 1.6% of amount above $1,075,000
Over $6,571,000	$88,036 + 2.0% of amount above $6,571,000

Assessment date: 31 December each year. Your NSW land tax liability is based on all taxable NSW land you hold as at midnight on 31 December.

Worked example: $1,500,000 land value in NSW

Scenario (individual investor): You own an investment property in Sydney. Revenue NSW has assessed your land's unimproved value at $1,500,000 as at 31 December 2026.

Standard rate calculation:

Land value: $1,500,000 — falls in the $1,075,001–$6,571,000 bracket
Base: $100
Plus: 1.6% × ($1,500,000 − $1,075,000) = 1.6% × $425,000 = $6,800
Total NSW land tax: $6,900

Same land value as a foreign investor:

Standard land tax: $6,900
Foreign owner surcharge: 4% × $1,500,000 = $60,000
Total: $66,900

The 4% foreign investor surcharge applies to the total taxable land value — not just the portion above the threshold. It dwarfs the standard land tax bill at almost any land value.

How NSW land tax aggregation works

Revenue NSW aggregates all taxable land you own in NSW when calculating your threshold position. Each property does not have its own threshold — the combined land value of everything you own in NSW is assessed together.

Example — three properties below the threshold individually:

Property 1: land value $400,000
Property 2: land value $380,000
Property 3: land value $350,000
Combined NSW taxable land value: $1,130,000

Each property individually is below the $1,075,000 threshold. But combined, they exceed it by $55,000, triggering a land tax bill of $100 + 1.6% × $55,000 = $980.

This is the aggregation trap that catches investors who buy multiple lower-value properties: no single one would trigger land tax, but together they push the portfolio over the threshold.

Important: NSW aggregates only NSW land. Investment properties in Victoria or Queensland do not count toward your NSW threshold.

NSW land tax: key rules

Principal residence exemption

Your principal place of residence is exempt from NSW land tax. The exemption applies to the land under and around your home and must be your main residence — not a holiday home or a property occupied by a family member.

Trust rules in NSW

NSW taxes most trusts similarly to individuals — the same $1,075,000 threshold applies, and trusts do not face a lower threshold as they do in Queensland. However, fixed trusts and special trusts (including discretionary trusts) may be subject to different assessment rules. Revenue NSW publishes trust-specific guidance on its website.

Unlike Victoria, NSW does not charge a separate trust surcharge percentage on top of the standard rate.

Foreign owner surcharge (4%)

Foreign persons — non-residents and foreign-controlled companies — pay an additional 4% surcharge on total taxable NSW land value. This is assessed separately from the standard land tax, applies from the first dollar of land value, and has no minimum threshold of its own.

The NSW surcharge applies to each parcel of land individually, not just the aggregated portfolio. This is different from how the standard threshold works, where all NSW land is combined.

Premium property rate

The premium rate of $88,036 + 2% applies to land values above $6,571,000. This rate is specifically targeted at high-value Sydney properties, particularly inner-city residential land. Investment properties in Sydney's eastern suburbs and North Shore can approach or exceed this level, particularly for larger blocks.

Assessment date: 31 December

NSW land tax is assessed on 31 December each year — the same date as Victoria. Revenue NSW issues notices of assessment during the following year. If you settle on an investment property on 1 January, you don't pay for that calendar year; settling on 31 December means you do.

NSW land tax compared to other states

NSW has the most generous individual threshold on the mainland, which is why many Sydney investors pay no land tax despite significant property values.

State	Individual threshold	Land tax on $1,500,000 land value
Victoria	$50,000	~$14,675
Queensland	$600,000	$18,250
NSW	$1,075,000	$6,900
South Australia	$833,000	~$7,670

For interstate investors comparing holding costs, NSW's high threshold is a genuine advantage — though Sydney property values mean many investors still pay land tax in absolute dollar terms even if the effective rate is lower.

Frequently asked questions

What is the NSW land tax threshold for 2026-27?

The NSW land tax threshold is $1,075,000 for individuals and most trusts. Taxable land value below this is exempt. Revenue NSW aggregates all your NSW land to determine whether you exceed the threshold.

Is there a trust surcharge for land tax in NSW?

NSW does not charge a separate percentage surcharge on trusts as Victoria does. Most trusts are taxed at the same threshold and rate as individuals ($1,075,000 threshold). However, special trust categories have specific rules — check Revenue NSW guidance if your property is held in a discretionary or fixed trust.

When is NSW land tax assessed?

NSW land tax is assessed as at 31 December each year. Revenue NSW issues assessment notices in the months following, typically from March onwards.

Does NSW have a foreign investor land tax surcharge?

Yes. Foreign persons pay an additional 4% surcharge on total taxable NSW land value. Unlike the standard threshold (which aggregates all NSW land), the surcharge applies to each parcel of land individually.

Is land tax deductible in NSW?

Yes — land tax is deductible as a rental property expense for income-producing investment properties. It reduces your net rental income or increases your rental loss, lowering your taxable income accordingly.

This article is for general information only and does not constitute financial, tax or legal advice. NSW land tax thresholds and rates are set by the NSW Government and subject to change. Verify current rates with Revenue NSW before making financial decisions.