What Is the Land Tax Threshold in New South Wales for Residential Properties?
NSW land tax threshold explained: the current tax-free amount, how the scale above it works, and why it matters if you hold investment property.
What Is the Land Tax Threshold in New South Wales for Residential Properties?
As at July 2026, NSW land tax has a general tax-free threshold of $1,075,000 of combined taxable land value. If the total taxable value of the NSW land you own — added together, not counted property by property — sits at or below that figure, no land tax is payable. Above it, a progressive scale applies. This article covers the current NSW figures only; land tax is set separately by every state and territory, so it says nothing about any other jurisdiction’s numbers.
Land tax is an annual state tax on the unimproved value of land you own (not the buildings on it), separate from council rates and separate from the one-off stamp duty paid on purchase. For an investor, it’s an ongoing holding cost that sits alongside things like insurance, property management fees and loan repayments.
What is the NSW land tax threshold right now?
Revenue NSW sets two thresholds for the 2026 land tax year:
| Combined taxable NSW land value | Land tax payable |
|---|---|
| $1,075,000 or less (general threshold) | Nil |
| More than $1,075,000 but less than $6,571,000 (general) | $100 plus 1.6% of the value above $1,075,000 |
| More than $6,571,000 (premium threshold) | $88,036 plus 2% of the value above $6,571,000 |
These figures come directly from Revenue NSW’s thresholds and rates page. One thing worth flagging for anyone used to older figures: NSW froze these thresholds from the 2025 land tax year onward, rather than indexing them upward every year as it historically did. That means the $1,075,000 and $6,571,000 figures aren’t guaranteed to move at the usual pace — but a future state budget could still change them, so treat this table as current as at July 2026, not as a fixed number for all time.
A worked example (illustrative only)
Say an investor’s combined taxable NSW land value is $1,575,000, as at July 2026. That sits inside the general band:
$100 + 1.6% × ($1,575,000 − $1,075,000) = $100 + 1.6% × $500,000 = $100 + $8,000 = $8,100
This is a worked example using the published formula and a made-up input figure to show how the scale applies — not a typical or average land tax bill. Your own figure depends entirely on your own land value.
How does the threshold apply if I own more than one property?
This is the detail that catches investors out: the $1,075,000 threshold is assessed against your combined taxable NSW land value, not against each property separately. If you hold two investment properties in NSW with a combined land value above the threshold, you’re assessed on the total — even if neither property would trigger land tax on its own. This is a key reason land tax is a genuine portfolio-level cost to plan for, not something to check off one property at a time.
Is my home exempt from land tax?
A genuine principal place of residence is generally exempt from land tax across Australian states and territories, including NSW — this is the standard baseline rule, though the exact mechanics and tests differ by state. The threshold and scale above apply to land that isn’t your exempt home: typically investment properties, land banked for development, and similar holdings. Revenue NSW’s own guidance sets out the specific tests that apply to a principal-residence exemption claim, and it’s worth checking directly if your situation isn’t straightforward (a property you’re renovating before moving in, a property held in a trust, and so on).
Why does land tax matter for NSW property investors?
Land tax is a genuine, recurring cost of holding investment property — one that scales with your combined landholding rather than staying flat, and one that can shift with a state budget rather than with anything you do. It sits alongside rates, insurance, and management fees in the running-cost side of the investment equation, distinct from one-off costs like stamp duty at purchase. How land tax interacts with your overall tax position depends on your circumstances — how the property is owned, what else you hold, and your broader financial position. Tax outcomes depend on your circumstances — speak with a registered tax agent before acting.
If you’re weighing up how holding costs like land tax fit into a broader investment plan, our guide to property investment in Australia walks through how the mechanics, costs and risks fit together.
Does every state calculate land tax the same way?
No — land tax is set by each state and territory individually, not by the federal government. Each jurisdiction has its own threshold, its own rate scale, and its own revenue office administering it, and there’s no single national comparison page that covers all of them accurately at once. If you hold — or are considering holding — investment property outside NSW, the NSW figures in this article tell you nothing about what applies elsewhere: check the relevant state or territory revenue office directly for its current threshold before relying on any figure.
Where can I check the current NSW land tax figures?
Because these thresholds are budget-volatile, treat this article as a starting point, not a substitute for checking directly. Revenue NSW’s thresholds and rates page is the authoritative source and the one to check before making any decision based on these numbers — particularly if you’re close to the threshold or planning a purchase that would push your combined land value over it.
General information only. This article provides general information and does not take into account your objectives, financial situation or needs. It is not financial product advice, tax advice or legal advice. Consider whether the information is appropriate for your circumstances and seek advice from a licensed professional before making financial decisions. MyBrix Pty Ltd ABN 37 669 479 636 is authorised representative 1304961 of Australian Financial Licensing Group, AFS Licence No. 269868. Brix are issued by MyBrix Properties Pty Ltd ACN 669 491 338. Before acquiring or selling Brix, read the Product Disclosure Statement and Target Market Determination available at mybrix.com.au.
[REVIEW: to be reviewed by a registered tax agent — arranged by Fadi]
