NSW land tax in 2026: frozen thresholds, current rates and what changed

NSW land tax for the 2026 land tax year is assessed on the taxable land you owned at midnight on 31 December 2025, using a three-year average of Valuer General land values. The general threshold is $1,075,000 (tax of $100 plus 1.6% above it) and the premium threshold is $6,571,000 ($88,036 plus 2% above it); both are frozen at 2024 levels. Your principal place of residence is generally exempt, but from 2026 the occupying owners must together hold at least a 25% ownership interest.

Key points:
- The 2026 NSW land tax thresholds are **$1,075,000** (general) and **$6,571,000** (premium) — frozen at 2024 levels by a 2024-25 NSW Budget measure that removed annual indexation, per [Revenue NSW](https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/land-tax/understanding-land-tax/thresholds-and-rates).
- Tax is $100 plus 1.6% of taxable land value above $1,075,000, rising to $88,036 plus 2% of value above $6,571,000.
- Liability is fixed at midnight on **31 December 2025** for the whole 2026 year — no pro rata — based on the average of the Valuer General’s unimproved land values at 1 July 2023, 2024 and 2025.
- From the 2026 land tax year, the principal place of residence exemption requires the occupying owners to hold at least a **25% ownership interest** — the transitional protection for pre-February 2024 claimants ended after the 2025 land tax year.
- Special trusts (typically discretionary family trusts) get no threshold and pay a flat 1.6% from the first dollar of taxable land value, with 2% above $6,571,000.
- Foreign owners pay surcharge land tax of 5% on all NSW residential land (2025 land tax year onwards), with no tax-free threshold and in addition to ordinary land tax.
- 2026 assessment notices issued from 19 January 2026; paying in full before the due date on the notice earns a 0.5% discount, or interest-free instalment plans run over 3, 6 or 9 months.