By Tim McKibbin, REINSW CEO
Land tax is yet another financial burden of owning property in NSW. Unlike stamp duty, which is a one-off payment, land tax is payable yearly on any land you own that isn't your principal place of residence.
It is calculated on the total value of all your taxable land valued over $692,000. If the combined value of all taxable land you own does not exceed this threshold, no land tax is payable.
But how is the value of your land determined? Well, every year, the Valuer General determines this based on the average unimproved (or site) value of your property in the current year and the past two years. As with stamp duty, NSW land tax thresholds do not reflect the current market.