NSW Land Tax Calculator & Investor Guide (2026 Update)

Planning to buy an investment property in NSW? This guide explains how NSW land tax works, which land value to use, and how to estimate your annual holding cost using the free PropMax NSW Land Tax Calculator.

Land tax is an ongoing holding cost every NSW investor needs to account for. Revenue NSW calculates it on the combined unimproved land value of all taxable NSW land you own at midnight on 31 December each year, using a 3-year average of land values supplied by the NSW Valuer General.

Table of Contents

• Step 1. Understanding Land Tax Rules in NSW
• Step 2. How to Find Your NSW Land Value
• Step 3. NSW Land Tax Thresholds and Rates
• Step 4. Trusts and Foreign Owner Surcharge
• Step 5. Use the Land Tax Calculator

Step 1. Understanding Land Tax Rules in NSW

NSW land tax is assessed on your combined holdings, not each property in isolation. Before using the calculator, gather the following:

• The combined taxable land value of all NSW land you own
• Which properties are exempt (e.g. your principal place of residence)
• How the land is held — personally, jointly, in a company, or in a trust
• Whether the foreign owner surcharge applies to you

The tax-free threshold applies to your total combined taxable land value, not to individual properties.

Step 2. How to Find Your NSW Land Value

Land tax is based on unimproved land value — the value of the land only, excluding buildings and other improvements.

You can find your land value from:

1. Your NSW land value notice
2. The NSW Valuer General's land value search
3. Council or existing valuation records
4. The contract or due diligence pack from purchase

When modelling an investment, use the combined average unimproved land value across all taxable NSW properties you expect to own.

Step 3. NSW Land Tax Thresholds and Rates

For the 2026 land tax year, Revenue NSW applies the following:

Example: Combined average taxable land value of $1,655,000. Taxable amount above the general threshold: $580,000. Land tax payable: $100 + 1.6% × $580,000 = $9,380.

Step 4. Trusts and Foreign Owner Surcharge

Ownership structure affects how land tax is calculated.

Special and discretionary trusts generally don't receive the tax-free threshold. Revenue NSW taxes them at a flat 1.6% up to the premium threshold, then 2% above it.

Foreign owners of residential land pay an additional surcharge. From 2025, this is set at 5% of the land value with no tax-free threshold.

Step 5. Use the Land Tax Calculator

Use the calculator on this page to estimate your NSW land tax before purchasing. You'll need:

• Combined average unimproved land value
• Whether the land is held in a special or discretionary trust
• Whether the foreign owner surcharge applies

This tool is designed for investor modelling purposes. Always confirm your final liability with Revenue NSW or your accountant before relying on the figure for settlement or tax planning.