1. What is NSW land tax and who pays it?

Land tax is an annual state tax charged on the unimproved value of taxable land you own in NSW, as at midnight on 31 December each year. The tax is calculated on the combined taxable value of your non-exempt landholdings above the relevant threshold. 

Key points:

• Land values are determined by the NSW Valuer General, usually using a three-year average of values. 
• Land tax applies for the full tax year following the taxing date – there’s no pro-rata reduction if you sell part-way through the year (any adjustment is dealt with in the sale contract). 
• All land is taxable unless an exemption applies (for example, principal place of residence or primary production land). 

You may be liable for land tax if your total NSW taxable land value (excluding exempt land) exceeds the general threshold.

2. Key dates for the 2026 land tax year

For the 2026 land tax year:

• Taxing date: land is assessed based on ownership and usage at midnight, 31 December 2025. 
• Assessment issue date: Revenue NSW will begin issuing 2026 land tax assessment notices from 19 January 2026. 
• Due date to lodge a return: you must lodge your land tax return by the due date shown on your 2026 assessment notice, or by 31 March 2026 – whichever comes first. Late or incorrect lodgements can attract interest and penalties. 
• Objection deadline: if you want to object to a land tax assessment, you generally have 60 days from the date of the assessment/decision to lodge an objection with Revenue NSW. 
• Land value objection deadline: if you are objecting to the land value itself, you also generally have 60 days from the valuation notice or land tax assessment. 

Settling a property in early 2026?
If you are buying or selling and need land tax cleared for settlement:

• You can apply for a 2026 land tax clearance certificate from 15 December 2025, and 
• Request an early issue of your 2026 land tax assessment to keep settlement on track. 

3. 2026 land tax thresholds and rates

For the 2026 land tax year, the thresholds are unchanged and remain frozen at the 2024 levels: 

• General threshold: $1,075,000 
• Premium threshold: $6,571,000 

Once your total taxable land value exceeds the general threshold, land tax is calculated using the current rates: 

• Between the general and premium thresholds: 
• $100 + 1.6% of the value above $1,075,000 
• Above the premium threshold: 
• $88,036 + 2% of the value above $6,571,000 

Note: surcharge land tax for foreign owners is separate and has its own rate; the general and premium thresholds do not apply to surcharge land tax. 

4. Principal Place of Residence (PPR) exemption – the 25% ownership rule

Your principal place of residence (PPR) is usually exempt from land tax. However, the rules have changed and from the 2026 land tax year, ownership percentage now matters.

From 1 February 2024, and fully from the 2026 tax year, the PPR exemption can only be claimed if the people who live in the property collectively own at least 25% of it. 

You may be eligible, for example, if: 

• You live in the property and own 30% of it; or 
• You and another owner both live in the property and own 15% and 20%, respectively (total ownership of residents = 35%). 

You will not be eligible, for example, if: 

• You live in the property and own 10%, and no other owner lives there; or 
• You and another owner live there but own only 5% and 15% respectively (total 20%, below the 25% threshold). 

Other important PPR points:

• Only natural persons can generally claim the PPR exemption – it does not apply where the land is owned by a company or certain “special trusts”. 
• You can generally only claim one PPR exemption per family worldwide. 
• If you no longer meet the updated criteria, you must update your records via Land Tax Online and remove the PPR exemption. 

Because the PPR exemption often makes the difference between paying no land tax and a substantial annual bill, it’s crucial to review your ownership percentages and living arrangements.

5. Other common land tax exemptions and concessions

Revenue NSW recognises a range of exemptions and concessions. Common examples include: 

• Primary production land used for genuine farming or agricultural activities. 
• Certain retirement villages, aged care facilities and nursing homes (often with partial exemptions where the land is only partly used for exempt purposes). 
• Some childcare centres, boarding houses, and charitable / non-profit uses, where strict criteria are met. 

Each exemption has specific conditions and documentary evidence requirements. In practice, many clients miss out on concessions simply because their Land Tax Online records haven’t been updated to reflect how the property is actually used.

6. How to check your 2026 land tax assessment

When your 2026 notice arrives (by post or email), don’t just pay it – check it carefully.

You can view and download your notice (and the last five years of assessments) in Land Tax Online via your MyServiceNSW Account. 

Key things to review:

1. Ownership details
• Are the names, client IDs and ownership percentages correct? 
• Are all listed owners still on title? Has anyone been added or removed? 
2. Property list
• Are all the properties listed actually yours? 
• Has anything been sold that still appears, or acquired that doesn’t appear? 
3. Land values
• Check the three-year average land value shown for each property. Does it look broadly consistent with market values in your area? 
4. Exemptions and surcharge
• Is your PPR exemption still correctly applied? 
• Are any primary production or other exemptions properly reflected? 
• If you’re a foreign person or trustee, is surcharge land tax correctly (or incorrectly) applied? 
5. Threshold and rate application
• Does the notice show that your land tax was calculated above the general threshold and, if applicable, the premium threshold? 

If anything doesn’t look right, don’t ignore it – there are formal ways to correct errors or dispute the assessment.

7. Updating your land tax details or lodging a return

If your circumstances have changed – for example, you’ve bought or sold land, moved home, changed how a property is used, or your ownership percentages have changed – you should update your details via Land Tax Online and lodge your return.

Revenue NSW’s guidance for lodging a return / updating land tax details is: 

1. Log in to your MyServiceNSW Account and access Land Tax Online. 
2. Confirm your details then select “Manage land tax”. 
3. Choose “Update land tax details”. 
4. Review and update: 
• contact details 
• landholdings (add or remove properties if required) 
• exemptions and concessions (e.g. PPR, primary production). 
5. Upload any supporting documents (for example, trust deeds, usage evidence, letters, or valuations). 
6. Review everything and click Submit. 

You must lodge your land tax return by 31 March or the due date on your assessment notice, whichever is earlier. 

8. Disputing your land tax assessment or land value

There are two main categories of dispute:

1. Disputing how the tax law has been applied (for example, an exemption has been denied or the wrong ownership type has been used); and 
2. Disputing the underlying land value provided by the Valuer General. 

8.1 Objecting to your land tax assessment (Revenue NSW)

If you believe the legislation has not been correctly applied to your assessment, you can lodge an objection with Revenue NSW. 

Key points:

• You generally have 60 days from the date of the assessment or decision to lodge an objection. 
• The objection must be in writing, clearly explaining: 
• why you believe the assessment is incorrect, and 
• which parts of the law or facts you say have been misapplied. 
• You must provide supporting evidence (for example, proof of residence, trust deed clauses, proof of land use). 
• You are generally expected to pay the assessment by the due date to minimise interest, even while the objection is being considered. 

If the objection is allowed, you’ll receive a revised assessment and any refund (with applicable interest).

8.2 Objecting to your land value (NSW Valuer General)

If your concern is that the land value is too high, you need to lodge an objection with the NSW Valuer General, not Revenue NSW. 

Key points:

• You usually have 60 days from the notice of valuation or relevant land tax assessment to object. 
• You must provide evidence, such as comparable sales data, to support the value you say is correct. 
• Objections are lodged via the NSW Valuation and Objection Portal. 
• If the Valuer General adjusts the value, Revenue NSW will be notified and your land tax will be reassessed, with a new assessment notice issued. 

Because objections are technical and deadline-driven, it’s usually worthwhile to get professional advice before lodging.

9. Payment options and digital notices

If you receive a land tax bill that you can’t pay in full by the due date, Revenue NSW allows you to set up interest-free payment plans, typically over 3, 6 or 9 months, with fortnightly or monthly instalments, provided your account is not overdue.

10. How The Quinn Group can help

Land tax can be particularly complex where:

• you own multiple properties or properties in more than one structure 
• land is held through companies, discretionary trusts, unit trusts or SMSFs
• your PPR exemption is affected by changing ownership percentages or living arrangements 
• you are exposed to surcharge land tax as a foreign owner or through trust terms 
• you wish to object to an assessment or valuation, or restructure to reduce future exposure. 

We can assist you to:

• review your 2026 land tax assessment and property portfolio 
• check whether you are properly accessing available exemptions and concessions
• ensure your Land Tax Online records are up to date and consistent with your current circumstances 
• prepare and lodge any objection or valuation review, including collating evidence 
• advise on structuring options to help manage land tax exposure going forward. 

If you would like tailored advice on your NSW land tax position for 2026, contact The Quinn Group on (02) 9223 9166 or email enquiries@quinns.com.au to arrange a meeting.