5% of your land value No threshold at all
NSW Surcharge Land Tax for Foreign Owners
A foreign person who owns residential land in NSW pays 5% of the land value, on top of any land tax — and there is no threshold. A $500,000 apartment with no land tax at all still attracts $25,000 of surcharge.
1 Enter your total taxable value2 See the land tax you owe
Step 2 · your result
Estimated land tax including surcharge
$0
the surcharge on its own
- Total taxable value
- $0
- Surcharge threshold
- $0
- Surcharge land tax (5%)
- $0
- Effective rate
- —
Rate and rules from Revenue NSW — What is surcharge land tax? (page last updated 08 April 2026), checked 15 October 2026. This calculator works out the surcharge only — the NSW land tax calculator does the other part. General estimate only — not tax advice.
The rate, and what it is charged on
| Period | Rate |
|---|---|
| 2025 onwards | 5% |
| 2023 – 2024 | 4% |
| 2018 – 2022 | 2% |
It is charged on the unimproved value of each piece of residential land you own, on top of any land tax you already pay — and it applies even when the property is exempt from land tax. You are assessed on the residential land you own at midnight 31 December.
5% × land value
One rate table, no threshold, charged on each piece of residential land.
Worked examples from Revenue NSW
| Situation | Land tax | Surcharge land tax |
|---|---|---|
| Two residential properties, $600,000 each ($1,200,000 total) | $2,100 | $60,000 |
| One residential property at $500,000 — under the land tax threshold | $0 | $25,000 |
| $500,000 residential + $700,000 commercial | $2,100 | $25,000 (commercial land excluded) |
These are the three examples the revenue office publishes, reproduced as it states them. Note the second and third rows: the surcharge is charged where the land tax is not.
Who is a foreign person
- There is no tax-free threshold. Revenue NSW says it plainly: "A tax-free threshold does not apply to surcharge land tax. You must pay surcharge land tax regardless of the land value of your property."
- It is charged on each piece of residential land and is proportional to your ownership share. Unlike land tax there are no joint assessments and no secondary deductions — so a jointly owned property is split, and only the foreign owner pays.
- Commercial and primary production land is not residential land, so it is left out. Where a building is used for both, an apportionment factor splits the land value.
- You are a foreign person unless you are an Australian citizen, or a permanent resident who has lived in Australia for 200 days or more in a calendar year. A permanent resident who lives overseas for 165 days or more (166 in a leap year) is a foreign person for this tax.
- It catches vacant land zoned or designated for residential use, not just land with a house on it.
- A company whose shares are substantially held by foreign persons, and a trust with any foreign beneficiaries (special, discretionary or fixed), can also be liable.
Frequently asked questions
How much is surcharge land tax in NSW?
5% of the land value from 2025 onwards. It was 4% for 2023 and 2024, and 2% from 2018 to 2022. It is charged on the unimproved value of each piece of residential land you own at midnight 31 December, on top of any land tax you already pay.
Is there a threshold for surcharge land tax?
No. Revenue NSW is explicit: "A tax-free threshold does not apply to surcharge land tax. You must pay surcharge land tax regardless of the land value of your property." The $1,075,000 land tax threshold does not protect you from this one — a $500,000 unit owned by a foreign person attracts $25,000 of surcharge even though the land tax is nil.
How is it different from land tax?
Three ways. It is charged per piece of residential land rather than on your combined holdings; it is proportional to your ownership share with no joint assessment or secondary deduction, so a half share attracts half the surcharge; and it applies even when the property is exempt from land tax.
Who counts as a foreign person?
You are a foreign person unless you are an Australian citizen, or a permanent resident of Australia who has lived in Australia for 200 days or more in a calendar year (the days do not have to be consecutive). That means a permanent resident who spends 165 days or more overseas in a year (166 in a leap year) is a foreign person for this tax — the residency test bites long before most people expect it to.
Does it apply to vacant land and to commercial property?
It applies to vacant land zoned or designated for residential use, not only to land with a house on it. It does not apply to commercial land or to land used for primary production. Where a building is used for both residential and commercial purposes, an apportionment factor splits the land value.
What about a property owned with someone who is not a foreign person?
Only the foreign owner’s share is charged. Revenue NSW gives the example of two equal owners where one is a foreign person: surcharge land tax is charged on the foreign owner’s 50% portion, issued as a secondary assessment, and the other owner pays nothing. The standard land tax stays joint.
Do companies and trusts pay it?
They can. A company is a foreign corporation if foreign persons hold a substantial interest in it, and a trust can be liable if any of its beneficiaries are foreign persons — special, discretionary and fixed trusts included.
Related
- New South Wales land tax calculator — the general rate table the surcharge sits on
- Victoria’s absentee owner surcharge — how the other state does it
- Every state’s land tax compared
- Stamp duty in NSW — the one-off tax on the purchase, where a foreign buyer usually pays a surcharge too