September 21, 2018

How Is Land Tax Calculated in NSW?

One of the terms that homeowners and real estate agents in New South Wales encounter is land tax. It is the tax that is levied on landowners in the state every December 31 at 12 midnight. This applies whether the landowners earn money from their land or not.

To have an idea of how much land tax you need to pay, you can use a land tax calculator.

How to Calculate Land Tax in NSW

It is calculated based on the total value of all of your taxable land that is over the threshold of $549,000. A tax amount of $100 is paid and 1.6% of the value of the land, between the land tax threshold and the premium rate threshold which is $3,357,000. It becomes 2% for the succeeding land value.

Keep in mind that if the land is owned in partnership, the land tax threshold will still be $549,000. Also, there may be assessments on a person’s interest in a partnership if he/she is an owner of other land properties, whether as an individual or with partners.

To have an idea of how much land tax you need to pay, you can use a land tax calculator. You’ll find numerous websites that enable you to calculate land tax based on all the land properties that you own. But as with any other tax-related matters, it is still best to seek professional land tax advice. An expert will help you better understand the land tax that you need to pay as well as whether or not your land is taxable.


Who can be considered a land owner? Land ownership comes in many forms. It can be a sole owner, joint owners, a company or owners of title units, trustees of super funds, trust beneficiary, a society or organisation wherein the land is not exempt, unit holders whose interest in a unit trust is entitled to the threshold of land tax, and lessees of a local council land.

Are you a landowner in New South Wales? Your land may be taxable if it falls under any of these classifications:

  • vacant land
  • holiday or vacation home
  • land where a residential unit has been constructed
  • company title units
  • investment property
  • residential
  • commercial or industrial units
  • commercial properties
  • land which is leased from the state or local government

Make sure to check your local taxation website to know more about land tax in your area.

Got other ideas about land tax in Australia? Share your insights in the comments section.

About the author  ⁄ Marxa Dillan

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