Bundilla Beef resource | 30 June 2026

NSW Land Tax Thresholds and Rates for 2026

A practical annual update for NSW rural and semi-rural property owners checking land tax exposure, land value movement and primary production evidence.

Quick answer

For the 2026 NSW land tax year, Revenue NSW states that the general threshold is $1,075,000 and the premium threshold is $6,571,000. The general rate is $100 plus 1.6% of the combined taxable land value above the general threshold. Premium land tax applies above the premium threshold.

The threshold does not make rural land taxable by itself. Revenue NSW first looks at what land is taxable, what land is exempt and how the land is owned. For a rural or semi-rural owner, the key practical question is often whether any land may be removed from the calculation because it qualifies for a primary production exemption.

Working rule: treat the thresholds as the calculation trigger, not as the exemption test. A primary production position still depends on the property facts, actual use, timing, ownership and evidence.

2026 NSW thresholds and rates

Band	2026 threshold or rate	What it means in practice
General threshold	$1,075,000	For many owners, general land tax starts only when the combined taxable land value is above this threshold.
General rate	$100 plus 1.6% of value above $1,075,000	This is the main calculation used once taxable land value is above the general threshold and below the premium threshold.
Premium threshold	$6,571,000	Higher-value aggregated taxable holdings move into the premium calculation above this threshold.
Premium rate	$88,036 plus 2% of value above $6,571,000	Revenue NSW applies this to taxable land value above the premium threshold, subject to ownership and surcharge rules.

Why the 2026 threshold matters

Revenue NSW explains that NSW land tax thresholds are fixed from 1 January 2025. This means the same general and premium threshold figures apply for the 2026 land tax year unless the law or Revenue NSW guidance changes.

For owners of rural and semi-rural land, the freeze matters because land values can move while the threshold stays fixed. A property that was below the threshold in an earlier year may move above it as land values increase, especially where multiple taxable parcels are aggregated.

What is counted before the rate is applied?

The rate is applied to taxable land value, not to the full improved market value of a property. Revenue NSW uses land values supplied by the NSW Valuer General and generally assesses land held at midnight on 31 December before the land tax year.

Before relying on the threshold, check whether the assessment includes:

all NSW land held by the same owner or ownership group;
land that may be exempt, such as a principal place of residence or qualifying primary production land;
different treatment for companies, trusts, joint owners or related entities;
surcharge land tax exposure for foreign owners of residential land; and
recent changes in land value, ownership, subdivision, use or leasing arrangements.

Simple worked example

Assume a landholder has combined taxable NSW land value of $1,300,000 for the 2026 land tax year and no relevant exemption removes that land from the assessment.

Combined taxable land value	$1,300,000
Less 2026 general threshold	$1,075,000
Value above threshold	$225,000
General rate calculation	$100 plus 1.6% of $225,000
Estimated general land tax	$3,700

This is only a simplified illustration. A real assessment may change because of ownership type, aggregation, exemptions, concessions, surcharge land tax, principal place of residence rules or Revenue NSW's assessment process.

How primary production changes the conversation

A primary production exemption may help remove qualifying land from the taxable land calculation, but it is not automatic. Revenue NSW looks at the actual use of the land and the statutory tests that apply to the property facts.

Records can help demonstrate those facts. Useful records may include property maps, productive-area notes, livestock or crop records, photographs, invoices, activity logs, sales records, operator agreements and annual summaries prepared for an accountant, lawyer or Revenue NSW review.

Good evidence versus weak evidence

Weak position	Stronger position
Only checking whether land value sits above or below the threshold.	Separating taxable land, exempt land and disputed land before estimating the liability.
Assuming rural zoning or vacant land means no land tax.	Documenting actual primary production use and the area, timing and commercial context of that use.
Keeping invoices or photos without property references.	Linking each record to a parcel, paddock, production area, date range and activity.
Reviewing the assessment only after a notice arrives.	Checking land values, ownership, exemption evidence and annual records before the land tax year is assessed.

How Bundilla Beef can help

Bundilla Beef helps NSW rural and semi-rural property owners assess property suitability, plan practical primary production activity, organise operating records and maintain evidence packs that can help demonstrate what is happening on the land.

That work may help support a primary production position where the property facts, activity, timing and ownership are consistent with the exemption requirements. It does not replace advice from a qualified tax, legal or financial adviser.

Disclaimer: Bundilla Beef does not provide tax, legal or financial advice and does not guarantee a land tax exemption. Landowners should obtain advice from their accountant, lawyer or tax adviser before relying on any land tax position.

Source notes

This resource was prepared using official NSW sources checked on 30 June 2026. Source links should be checked periodically for changes.