What is the land tax threshold in NSW 2026?
The land tax threshold for NSW in 2026 has not yet been announced. Land tax thresholds are indexed annually and are typically announced closer to the assessment year. For 2024, the general threshold was $1,075,000 and the premium threshold was $6,575,000.
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How it works in practice
Understanding NSW Land Tax Thresholds
Land tax is an annual tax levied on the owners of land in New South Wales as of 31 December each year. This tax applies if the total unimproved value of all your taxable land exceeds the general land tax threshold. There is also a higher 'premium' threshold for significantly more valuable land.
Annual Indexation
The land tax thresholds are not static; they are indexed annually based on property values and movements in the average unimproved value of residential land in NSW. This means that the exact thresholds for 2026 will only be announced by Revenue NSW in late 2025 or early 2026. It is crucial to refer to the official Revenue NSW website for the most up-to-date figures once they are released.
Who Pays Land Tax
Land tax is generally payable by property owners, including individuals, companies, and superannuation funds, who own land above the tax-free threshold. Certain land types, such as your principal place of residence, primary production land, and some other specific exemptions, are exempt from land tax.
Important exceptions
The main exception to land tax is your principal place of residence, which is generally exempt. Land used for primary production (farming) may also be exempt. Other exemptions can apply, such as land used for charitable purposes, aged care establishments, or certain retirement villages. Each threshold is reviewed and indexed annually, meaning the figures change each year based on market conditions, so the 2026 figures will differ from current ones. You must ensure you qualify for any exemptions claimed.
What you should do now
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Review the official Revenue NSW website closer to late 2025 or early 2026 for the announced land tax thresholds for the 2026 assessment year.
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Understand the current land tax thresholds and how they are applied to general and premium land values to estimate your potential liability.
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Determine if any land you own qualifies for an exemption, such as your principal place of residence or primary production land.
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Obtain the unimproved value of your land, which is used for land tax calculations, usually provided by the Valuer General.
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Consult a tax advisor or property professional for personalised advice on your specific land holdings and potential land tax obligations.
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