NSW Land Tax Thresholds: General Overview of How They Work

What Is a Land Tax Threshold in NSW?

A land tax threshold is the level of total taxable land value you can generally hold in NSW before land tax begins to apply. If the aggregated unimproved value of your taxable NSW land is below the general threshold, land tax may not be payable (subject to exemptions and specific rules).

Once your total taxable land value moves above the relevant threshold, land tax is calculated using the applicable rates and bands for that year. NSW also has a higher premium land tax threshold, above which premium land tax rates may apply.

General and Premium NSW Land Tax Thresholds

NSW land tax typically involves at least two key thresholds:

• The general land tax threshold ? the level at which land tax begins to apply at the general rate band; and
• The premium land tax threshold ? a higher level of total taxable land value, above which premium rates apply.

Revenue NSW publishes the actual dollar amounts for these thresholds each year. This page does not reproduce those figures; instead, it focuses on the broad concepts. For specific thresholds by year, always refer to the Revenue NSW land tax thresholds page.

Aggregation: How Your NSW Properties Combine for Threshold Purposes

NSW land tax thresholds usually apply to the total taxable value of your NSW landholdings, not to each property in isolation. This is called aggregation.

In very general terms, this can mean:

• The unimproved values of all non-exempt properties you own in NSW are added together.
• Your share of jointly owned properties is included (for example, 50% of a co-owned property).
• Some structures (such as trusts and companies) may be assessed differently, depending on how they are set up and declared.

Because of aggregation, buying an additional property can push you above the general or premium threshold, even if each property looked manageable when considered on its own.

Illustrative Threshold Example (Not Real Numbers)

The following example is hypothetical and does not use real NSW threshold figures:

Imagine the general threshold for a particular year was $600,000 (illustrative only). If you owned two investment properties with unimproved values of $350,000 and $400,000:

• Your total taxable land value would be $750,000.
• This would sit above the hypothetical $600,000 threshold, meaning land tax could be payable at the general rate band.

Again, this example is simply to illustrate the concept of aggregation and thresholds. Actual thresholds and calculations are determined by Revenue NSW for each year.

How Thresholds Interact with NSW Land Tax Rates

Thresholds and rates work together to determine how much land tax you pay. In general:

• If your total taxable land value is below the general threshold, land tax may not be payable.
• If it is between the general and premium thresholds, land tax is usually calculated using the general rate band.
• If it is above the premium threshold, land tax is calculated using the premium band for the amount exceeding that threshold.

For a broader explanation of rate bands, see:

? NSW Land Tax Rates ? general overview of how the bands and formulas work
? Land Tax in NSW ? Overview ? context on who may pay land tax and why it matters for planning

Why NSW Land Tax Thresholds Matter for Property Planning

Understanding thresholds at a high level can help you and your advisers anticipate how your land tax position might evolve as you buy, hold or sell properties in NSW. For example, thresholds can influence decisions such as:

• How many properties you hold in NSW compared with other states
• Whether a particular purchase could push your aggregated land value above the general or premium threshold
• Which ownership structures are appropriate, in consultation with your accountant and solicitor

Any detailed threshold planning should be personalised and based on current law. General explanations like this one are a starting point only and should be complemented with tailored tax and legal advice.

Where to Confirm Current NSW Land Tax Thresholds

To confirm the actual dollar values for current and historical NSW land tax thresholds, the primary reference is:

? The Revenue NSW land tax thresholds page, which is updated periodically.

If you use any third-party calculators or tools that refer to thresholds, it is sensible to cross-check their inputs and assumptions against the official Revenue NSW information and to discuss the results with your tax adviser.

How a Buyers Agent Fits In with NSW Land Tax Thresholds

A buyers agent does not set or interpret thresholds for you, nor do they provide tax advice. However, a buyers agent in Sydney can assist by:

• Helping you identify the land component and general value range of properties you are considering
• Coordinating with your accountant so they can estimate how a proposed purchase might interact with current thresholds
• Supporting you through search, due diligence and negotiation once you are comfortable with the tax and structural advice you have received

Our property buyer checklist and Working with a Buyers Agent articles provide general guidance on coordinating your property search with advice from tax, legal and financial professionals.