What is Land Tax?

Land Tax

Land Tax is applied to the value of any property you own or jointly own that is above the land tax threshold as at midnight on 31 December. It is assessed and collected by the NSW Office of State Revenue (OSR).

Land tax is not applied to your principal place of residence (your home).

Below is the formula for calculating land tax.

Tax year Threshold Rate
2015 $432,000 $100 plus 1.6% up to the premium threshold.
$2,641,000 and over (Premium threshold) $35,444 for the first $2,641,000 then 2% over that.

 

There are a number of exemptions from Land Tax

Rural Land used for Primary Production is exempt from Land Tax

This exemption may apply where the dominant use of the land is for primary production. The exemption can be applied whether or not it is you that is undertaking the primary production activity.

Where the land is not zoned rural, the property must also pass a business test.

You can appeal a Land Tax Assessment that you believe is not correct by way of review directly with the OSR. If you are not satisfied with the outcome of that review you can seek further review with the NSW Civil and Administrative Tribunal (NCAT).

If the outcome from NCAT is not satisfactory you may have grounds to seek review in the NSW Courts System.

When selling a property a land tax clearance may be required.