NSW Land Tax 2025 is a state-imposed annual tax applied to the ownership of land in New South Wales that exceeds a certain value threshold. Whether you’re a property investor, company, or trustee, it’s important to understand how land tax applies to your circumstances and what exemptions may be available.
🔹 Key Takeaways About NSW Land Tax
- Land tax applies to land owners in NSW, excluding your primary residence
- The tax is based on the unimproved land value exceeding the annual threshold
- Thresholds and rates are set and updated each year by Revenue NSW
- Exemptions apply to farmland, charitable use, and certain organisations
- Valuations can be appealed if you believe your assessment is incorrect
- Professional advice can help reduce your risk and clarify your obligations
Who Pays Land Tax in NSW?
Individuals, companies, and trusts that own land in NSW may be liable to pay NSW Land Tax 2025. This obligation applies regardless of whether the land is income-generating. However, the principal place of residence is typically exempt, meaning most owner-occupiers are not affected.
In addition, land used in specific ways or owned by qualifying entities may not attract land tax.
👉 Learn how land ownership affects estate planning on our Wills and Estates page.
Thresholds and Valuations
Each year, the NSW Government sets a land tax threshold. If the total unimproved value of your land exceeds this threshold, you may need to pay land tax. For 2024, the threshold was $969,000, though this figure is updated annually.
Importantly, the NSW Valuer General determines land values based on the unimproved capital value. If your valuation seems inaccurate, you can lodge an objection through the appropriate channels.
🔗 Learn more at the NSW Valuer General
Rates of Land Tax in NSW
Once your land value exceeds the threshold, NSW Land Tax 2025 applies at the following rates:
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$100 plus 1.6% of the land value above the threshold
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A premium rate applies to land above $5.9 million (2024)
📌 For the latest rates, visit Revenue NSW
Exemptions from Land Tax in NSW
The following properties may be exempt:
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Your principal place of residence
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Qualifying farmland
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Charitable or religious organisation holdings
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Retirement villages, boarding houses, and low-cost housing
✔️ Need help determining eligibility? Speak to our property team
Assessment and Payment Process
Revenue NSW assesses land tax each year on 31 December. As a result, property owners typically receive their notice of assessment in the first quarter of the new year.
Moreover, payments can be made online through Revenue NSW, and instalment options may be available.
Recent and Upcoming Land Tax Changes
The NSW Government regularly reviews land tax policy. This may include:
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Adjustments to thresholds
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Changes to premium rates
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Revisions to exemption criteria
Therefore, if you’re establishing a trust or purchasing through a company, ensure your structure aligns with the latest regulations.
Explore our Wills and Estates and Property Law pages for more.
Need Help with NSW Land Tax 2025?
Land tax can be complex and costly if not managed correctly. At MCB Lawyers, we help you:
✅ Understand your NSW land tax obligations
✅ Dispute land valuations effectively
✅ Structure property ownership to minimise tax
✅ Apply for exemptions and ensure compliance
📞 Call us today on (02) 9977 1133
🌐 Or contact us online to speak with a property law team member