Land tax in New South Wales
Key rules at a glance
| Tax-free threshold | $1,075,000 (general threshold, 2025–26)Source: Revenue NSW |
|---|---|
| Rate | $100 + 1.6% of land value above the threshold; 2% premium rate above $6,571,000Source: Revenue NSW |
| Thresholds frozen | From 1 January 2025 the thresholds are no longer indexed annually and stay at these levels until reviewedSource: Revenue NSW |
| Assessment date | Land held at midnight on 31 December; uses a 3-year average of land valuesSource: Revenue NSW |
How it works in New South Wales
NSW assesses land tax on the value of land you hold at 31 December each year, using a three-year average of land values. For 2025–26 the general threshold is $1,075,000, above which tax is $100 plus 1.6% of the excess, stepping up to a 2% premium rate above $6,571,000. A significant change took effect on 1 January 2025: the thresholds are now frozen rather than indexed, so over time more investors will be drawn over the line as land values rise.
Revenue NSW — Land TaxFrequently asked questions
What is the NSW land tax threshold for 2025–26?▾
$1,075,000. Land tax applies to taxable land value above that, at $100 plus 1.6% of the excess, with a 2% premium rate above $6,571,000.
When is NSW land tax assessed?▾
On the land you own at midnight on 31 December. Revenue NSW uses a three-year average of land values to smooth out year-to-year swings.
Are NSW land tax thresholds still indexed?▾
No. From 1 January 2025 the thresholds were frozen and are no longer indexed each year, so they stay at current levels until the government reviews them.
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Last reviewed 9 June 2026
Figures reflect the 2025–26 financial year and tenancy laws in force as at mid-2026. State rules change often — always confirm the current figure with the linked authority before you rely on it.
This is general information for Australian landlords, not legal, financial, or tax advice. PropAlly is a software provider, not a law firm, accountant, or licensed adviser. Verify your obligations with the relevant state authority or a qualified professional.