NSW Land Tax 2026: What Property Owners Need to Know
The 2026 land tax threshold is frozen at $1.075M. Here is what the change means for your bill, your objection rights, and the 60-day deadline you cannot miss.
Revenue NSW started sending 2026 land tax assessment notices in January. If yours has arrived — or you're not sure whether it should have — this post covers what changed for the 2026 tax year, who's affected, and one part of the calculation you may be able to challenge.
Important: This is general information only, not legal or financial advice. Land tax situations vary. Speak to a tax professional for advice specific to your circumstances.
What is NSW land tax?
Land tax is an annual tax on the combined value of land you own in NSW, with some exemptions.
It is not the same as council rates. Council rates are charged by your local council to fund local services. Land tax is charged by the NSW state government through Revenue NSW.
The Shared Foundation
Both are calculated using your land value, set by the NSW Valuer General. If your land value is higher than it should be, it can affect both your council rates and your land tax bill.
Key changes for 2026
1. The threshold freeze takes full effect
The 2024-25 NSW State Budget froze the general land tax threshold. Previously it was adjusted each year. From 2025 onwards, it is fixed.
Because the threshold is now frozen rather than adjusted for rising property values, more owners are crossing it each year. That's a meaningful shift from how the system previously worked.
2. The principal place of residence exemption rule change
From the 2026 tax year onwards, the principal place of residence (PPR) exemption is only available if the total ownership interest of all individuals living in the property is at least 25%.
You can still claim if:
- • You live there and own 30% or more
- • You and another resident owner together own at least 25%
You cannot claim if:
- • You live there but own only 10%
- • Combined resident owners hold less than 25%
Who pays land tax?
Land tax generally applies to taxable NSW land you own above the threshold. This includes:
How your land value affects the bill
Because land tax is a percentage of land value above the threshold, every dollar of excess valuation costs you real money.
The Shared Foundation
An objection to your land value, if successful, can reduce both land tax and council rates. You have 60 days from the date on your land value notice to lodge a formal objection.
Common Grounds
- • Assessed value above comparable sales
- • Physical constraints (flooding, easements)
- • Zoning assumptions that aren't permitted
First-time Liability?
Rising values mean more owners are crossing the $1,075,000 threshold for the first time in 2026.
View Objection GuideLand tax vs council rates: at a glance
| Feature | Land Tax | Council Rates |
|---|---|---|
| Authority | Revenue NSW (State) | Local Council |
| Threshold | $1,075,000 (General) | None (applies to all) |
| Main Home | Usually Exempt | Always applies |
| Notices | From Jan each year | Quarterly or annual |
| Valuation | Valuer General NSW | Valuer General NSW |
Received a 2026 Land Tax notice?
Don't just pay it. Check your land valuation against actual market sales and physical property constraints. If the value is wrong, the objection is free.
Related Reading
How to Find Comparable Sales
Find and select the best comparable sales to support your objection
Property Comparison Analysis
Learn how to compare properties and pick the best comparables
Property Research Tool Guide
Step-by-step walkthrough of the RatesAppeal research tool