Do I have to pay land tax on my principal place of residence?
Your principal place of residence is generally exempt from land tax if you meet the eligibility criteria. The principal place of residence exemption does not apply to companies or most trusts.
For more information, visit the Exemptions and concessions page.
Do I have to pay land tax on a property that is not earning any income?
Yes, if your property is not exempt it will be subject to land tax regardless of whether it is income producing.
For example, a holiday home, hobby farm or vacant land.
I jointly own land with a company, who pays the land tax?
A single assessment will be issued to you and the company as joint owners.
If you own other interests in land, you will also receive a separate assessment of tax calculated at the general rate on the total value of all your interests, but you will be entitled to a deduction of a proportion of the tax payable jointly by you and the company, to avoid double taxation.
Do I have to pay land tax on properties outside of New South Wales?
No, you do not have to pay New South Wales (NSW) land tax on land located outside of NSW, but all other states and territories except the Northern Territory impose land tax.
Am I liable for a previous owner's unpaid tax?
No, if you obtain a land tax clearance certificate and it shows there is no land tax charged. If you do not gain a clear certificate you may be liable for the prior owners land tax.
Before you complete the purchase of a property or finalise any financial arrangements you should apply for a clearance certificate to check if there is a land tax charge. You can apply for a clearance certificate through a Client Service Provider.
For more information, go to the clearance certificate page.
Rates and thresholds
How does the threshold work if I own several land items?
If you own several land items, the value of all your liable land is added together. You will then be charged land tax on the combined land value above the land tax threshold.
Register for land tax
How do I know if I am registered for land tax?
You can check if you are registered by calling us on 1300 139 816.
How many registrations do I need to submit if I own land in various partnerships?
If you own land in several partnerships, you will need to submit a separate registration for each partnership, stating the land owned by each partnership.
For example, if A and B jointly own land they must submit one form in both names. If A and B own a property with C, they must submit one form in the three names.You must also lodge a separate return for your individual landholdings including any partial interests shown in the partnership returns and any land that you may also own as an individual.
Change of details
What happens if my land ownership changes?
If you purchase additional land or if you sell land, you will need to notify us by using Land tax online.
Note: any land ownership changes that occur within a tax year will not change your tax liability for that year, they will only affect your liability for the next year.
Notice of assessment
When will I receive a notice of assessment?
We generally issue both new and existing land tax clients with a notice of assessment stating your land tax liability in the first half of the year.
Generally assessments will be issued to you within 10 weeks of registration or lodgement of a variation return.
What do I do if the information on my notice of assessment is incorrect?
If information on your notice of assessment is incorrect, you should notify us of your correct details by using Land tax online.
You should advise us of any changes by the first instalment date listed on your notice of assessment, or, if it is a 'nil' assessment, within 40 days of the date shown on the notice of assessment.
What period does my notice of assessment cover?
Your notice of assessment covers a calendar year, 1 January to 31 December, and includes all property you own at midnight on 31 December of the year prior to each tax year.
Why have I received a notice of assessment for multiple years?
You will receive a notice of assessment for multiple years if you have owned taxable land for several years but have not previously been registered and paid land tax on these properties. You will receive an assessment that may go back to the date the land item(s) became liable for land tax.
How am I assessed if I own some land individually and some land with other owners?
You are assessed based on the total land value of all your interests in land, whether you own them as an individual or as a joint owner.
For example, if you have a 50% interest in the jointly owned land, your individual assessment will include 50% of the value of that land plus 100% of any land you own individually.
To make sure you do not pay tax twice on the jointly owned land, your individual assessment will show a deduction of the proportion of your tax liability on the jointly owned land.
For more information, view the Deduction to Prevent Double Taxation factsheet.
Why does my land appear on more than one assessment, am I being taxed twice?
If you have been individually assessed on your share of jointly owned land which has also been included in another assessment, your individual assessment will include a deduction of the proportion of your tax payable in the jointly owned land to prevent double taxation.
The calculations used to determine the deduction will be shown on the support schedule attached to your notice of assessment.
Why have I received a reassessment?
The reasons you may have received a reassessment can include:
- you have updated your land tax ownership details
- the exemption status of your land may have changed
- there have been changes to the percentage of land owned
- there has been a change in the valuation of your property.
If you would like more information on your reassessment, please contact us.
Why has interest been imposed on my assessment?
We may impose interest for:
- late or under payments
- where inaccurate or misleading information has been provided regarding land ownership
- where a previous land tax liability exists
- where you have not informed us of changes to landholdings within the required time
- where you have not registered on time
For more information, go to the Interest and penalties page.
How do I lodge an objection to my land tax assessment?
If you disagree with your land tax assessment, you have the right to lodge an objection. If you are objecting to more than one assessment, then you need to lodge a separate objection for each assessment. You need to lodge the objection within 60 days of the issue date of the assessment.
To lodge an objection, submit an Application for Objection form or call us on 1300 139 816 for a copy.
Note: even if you are making an objection you will still need to pay your land tax or you may be charged interest on any outstanding liability.
Paying your land tax
When do I need to pay my land tax?
You need to pay your land tax by the first instalment date shown on your land tax notice of assessment. If you pay your land tax in full by this date, you will be eligible for a 1.5% discount on your land tax.
What happens if I do not pay by the due dates?
If you do not pay your assessment by the due date and/or you have not advised us of an error in your assessment, your account will be referred to our Tax Debt Branch. You will need to pay the full amount of land tax due, including accrued interest.
What is the interest charged for late payment of land tax?
If you do not pay your land tax on time you will be charged interest. The interest rate consists of a premium rate (8%) and a market rate added together. The market rate is adjusted quarterly.
Can I apply for an extension of time to pay my land tax?
If you are unable to pay your land tax by the due date, please call us on 1300 368 710 to discuss payment options.
How can I find out if my payment has been received and where can I obtain my account balance?
You can call us on 1300 139 816 to check whether your payment has been received. Your payment to us will be shown on your bank statement as a payment to 'NSW OSR'.
What if I have paid an incorrect amount?
If you have underpaid your assessment you will need to pay the balance of the amount outstanding as soon as you realise you have underpaid.
If your assessment shows a credit balance, use Land tax online to submit your BSB and account details so a refund can be processed.
If you have overpaid your land tax you can call us on 1300 139 816 to organise a refund.
If I sell land partway through a year, do I get a refund of part of the tax paid?
No, although you may be able to recover a proportion of the tax paid when negotiating the contract of sale for your land. This is up to you to negotiate directly with the purchaser.
Do I need to apply for a clearance certificate or is this done by my solicitor or conveyancer?
If you are using a solicitor or conveyancer to help you purchase or sell a property, this person will generally apply for a clearance certificate for you.
When should I apply for a clearance certificate?
If you are not using a solicitor or conveyancer for your property purchase, you should apply for a clearance certificate as soon as possible in the conveyancing process.
You should make sure your certificate is for the year in which settlement will happen.
For more information, go to the clearance certificate page.