NSW Land Tax and the 31 December Ownership Date 2026–2027

Who pays land tax if settlement falls after 31 December?

The relevant ownership date for the 2027 land tax year is midnight on 31 December 2026. A contract signed in December does not, by itself, establish that the seller’s land tax responsibility has passed to the buyer. The contract, completion records and any arrangements for possession help establish who owned the land at the taxing date.

If you remain the owner of taxable land at that date, a subsequent sale ordinarily leaves the full annual assessment in place. The payment due date is a separate matter and appears on your assessment notice.

If you are selling a property, NS Legal can explain the effect of settlement timing and negotiate the land tax adjustment terms before you commit.

Does the principal place of residence exemption apply to my home?

Your home can qualify for the principal place of residence exemption when the ownership and occupation requirements are met. The ordinary exemption allows one principal residence worldwide and one exemption per family. The owners who occupy the home must together hold at least a 25% interest; land owned partly or wholly by a company or held in a special trust does not qualify for the ordinary exemption.

Continuous residential occupation is generally required from 1 July before the taxing date. If you bought, started living in or returned to the property later, the Chief Commissioner must be satisfied it is your principal residence at the taxing date. A concession may cover an old and new home for one tax year during a move, subject to its conditions.

NS Legal can assess the available concession and prepare supporting evidence from your occupation history, ownership shares and tenancy records for each home.

Can the buyer and seller agree to split land tax at settlement?

An adjustment depends on the contract and is a private arrangement between the parties. It does not change the statutory basis of Revenue NSW’s assessment. Read the signed terms before accepting a proposed contribution on the settlement statement.

Unpaid land tax can also attach to the land as a first charge, exposing a buyer to an earlier owner’s unpaid liability. The seller must provide a current land tax clearance certificate at least 14 days before settlement. For a transaction crossing into January, check whether the certificate protects the buyer for the year in which settlement occurs.

When acting on your property purchase, NS Legal can arrange for outstanding tax to be cleared at settlement and negotiate disputed adjustments with the seller’s representative.

What land values and ownership details do I need?

Revenue NSW generally uses a three-year average of the Valuer General’s unimproved land values, excluding buildings and other improvements. A parcel created less than three years ago is assessed using the years since its creation. The figure on your purchase contract is not a substitute for that land value.

The ordinary threshold applies to your combined taxable NSW land holdings, rather than separately to each property. Joint ownership involves a joint assessment and individual assessments, with a secondary deduction where applicable to prevent double taxation. Property can be taxable even when it earns no rental income.

NS Legal can prepare your ownership schedule and work with your nominated tax adviser on the calculation, including properties held in different combinations or capacities.

What should I organise before the end of 2026?

Update changes affecting your liability through Land Tax Online as soon as you become aware of them; submitting the update lodges a land tax return. Under the current requirements, a new customer must lodge by 31 March 2027, while an existing customer must update by the due date on their assessment notice.

For a consultation, gather the records relevant to your property:

• Title details and ownership shares, with any purchase or sale contract.
• Land valuations, assessment notices and previous returns.
• Occupation dates, leases and documents supporting an exemption.
• Contact and residency details, plus relevant company or trust documents.

NS Legal can prepare the supporting records for your return and advise on surcharge land tax and any FIRB considerations relevant to foreign ownership.

Compiled from official sources; updated 29 October 2026.