NSW Land Tax Explained: What Property Owners Need to Know for 2025

Land tax in NSW is imposed on landowners, based on the value of all taxable land above a certain threshold. Land tax is levied on the owners of land in NSW as of midnight on the

31st of December each year. It is important to note that the tax assesses the land value alone, not including buildings or other improvements.

Exemptions and Concessions

There are several exemptions and concessions available that can significantly reduce or eliminate the land tax obligation. The most common exemption is for land used as your principal place of residence (PPR).

Additionally, land used for primary production, or owned by certain non-profit organisations, may also be exempt.

Land tax Thresholds and Rates

For the 2025 tax year, the land tax threshold is $1,075,000.00 with tax rates applied to land values exceeding this amount. Specifically, the rate of tax for land values above the threshold is $100 plus 1.6% of land value up to the premium rate threshold, and 2% thereafter.

These thresholds and rates are pivotal for landowners to understand, as they determine the tax liability incurred.

When Does Land Tax Apply?

Land tax applies to landowners who own taxable land as of midnight on the 31st of December each year. If you own land above the threshold value at this time, you are liable to pay land tax for the ensuing year unless an exemption or concession applies.

This includes both individuals and entities such as companies, trustees, and partnerships holding land in NSW.

How Is Land Tax Calculated?

The calculation of land tax is based on the combined value of all taxable properties owned, utilising land values assessed by the Valuer General as of 1 July of the preceding year.

Property owners are encouraged to review land valuation notices carefully, as these figures directly affect your land tax assessment.

NSW land tax can be tricky. Understanding thresholds, exemptions, and calculations is key. For personalised advice, contact us today, we're here to help you navigate land tax and protect your property investments.