Stamp duty — officially called transfer duty in New South Wales — is one of the largest upfront costs you'll face when buying property. On a $900,000 home, it can add over $35,000 to your purchase costs before you've paid a cent of mortgage. Yet many buyers don't factor it into their budget until it's too late.
This comprehensive guide covers everything: how NSW stamp duty is calculated, the full 2025–26 rate tables, first home buyer exemptions, the land tax opt-in, foreign purchaser surcharges, and real-world examples across a range of property prices. By the end, you'll know exactly what you'll pay — and whether there's any legal way to reduce it.
Stamp duty is a state government tax applied to the transfer of land and property ownership. In NSW it is administered by Revenue NSW and is technically called "transfer duty." The name "stamp duty" is historical — it dates back to when a physical stamp was applied to documents to indicate tax had been paid.
The buyer is responsible for paying stamp duty. It is not negotiable with the seller and cannot be rolled into your home loan (though some lenders will factor it into your overall borrowing assessment). It must be paid within three months of the contract date, or at settlement — whichever comes first.
Stamp duty applies to purchases of:
Your principal place of residence is still subject to stamp duty — but first home buyers may qualify for exemptions or concessions that dramatically reduce the amount payable.
NSW uses a tiered progressive system, similar to how income tax works. You pay a fixed base amount plus a percentage of the value above each threshold. The rate increases as the property value increases — but only the portion of the value in each tier is taxed at that tier's rate.
| Property Value | Duty Payable |
|---|---|
| Up to $16,000 | $1.25 for every $100 (1.25%) |
| $16,001 – $35,000 | $200 + $1.50 per $100 over $16,000 |
| $35,001 – $93,000 | $485 + $1.75 per $100 over $35,000 |
| $93,001 – $351,000 | $1,500 + $3.50 per $100 over $93,000 |
| $351,001 – $1,168,000 | $10,530 + $4.50 per $100 over $351,000 |
| Over $1,168,000 | $47,295 + $5.50 per $100 over $1,168,000 |
Here's what stamp duty actually costs at common Sydney and NSW property price points for owner-occupiers in 2026:
| Purchase Price | Stamp Duty | Effective Rate |
|---|---|---|
| $400,000 | $13,490 | 3.37% |
| $500,000 | $17,835 | 3.57% |
| $650,000 | $24,585 | 3.78% |
| $750,000 | $29,085 | 3.88% |
| $900,000 | $35,835 | 3.98% |
| $1,000,000 | $40,835 | 4.08% |
| $1,200,000 | $49,835 | 4.15% |
| $1,500,000 | $74,095 | 4.94% |
| $2,000,000 | $101,595 | 5.08% |
Tip: Use our free NSW Stamp Duty Calculator to get an instant estimate for any purchase price, including first home buyer concessions and the land tax comparison.
NSW has some of the most generous first home buyer stamp duty concessions in Australia. If you qualify, you can save tens of thousands of dollars upfront.
To access first home buyer concessions in NSW, you must:
If you're buying with a partner, both of you must meet the eligibility criteria for the full exemption. If only one of you qualifies, you may still receive a 50% concession.
James and Priya are buying their first home together — an existing property in Western Sydney for $620,000. Both are Australian citizens and have never owned property before.
Standard stamp duty at $620,000 would be approximately $23,085.
As eligible first home buyers under the $650,000 threshold, they pay $0 in stamp duty.
Saving: $23,085
Since 2023, first home buyers in NSW have had an alternative to paying stamp duty upfront: opting into an annual property tax (land tax) instead. This option is available on properties valued up to $1.5 million.
Instead of a lump sum at purchase, you pay an annual tax based on the land value of the property:
The land value is assessed by the NSW Valuer General — it's usually significantly lower than the property's purchase price or market value.
It depends on how long you plan to own the property. The annual property tax costs less upfront but accumulates over time. The break-even point is typically around 8–12 years for most properties.
| Years Owned | Stamp Duty (Once) | Annual Property Tax (Cumulative est.) |
|---|---|---|
| 3 years | $29,085 | ~$9,000 |
| 5 years | $29,085 | ~$15,000 |
| 10 years | $29,085 | ~$30,000 |
| 15 years | $29,085 | ~$45,000+ |
Example based on a $750,000 property with a land value of approximately $400,000.
Important: When you sell a property where you opted into annual property tax, the new buyer is NOT obligated to continue — they make their own choice. However, if you convert an owner-occupier property to an investment, the higher investor rate applies from that point.
If you are a foreign person buying residential property in NSW, an additional surcharge of 8% of the purchase price applies on top of standard stamp duty. Revenue NSW assesses this based on your citizenship and visa status at the time of purchase.
A "foreign person" for stamp duty purposes includes:
New Zealand citizens with a special category visa (SCV) are generally exempt from the surcharge. If you're unsure of your status, consult a conveyancer or Revenue NSW directly before exchanging contracts.
If you're buying an investment property — not as your primary residence — standard stamp duty rates apply with no concessions. However, stamp duty paid on an investment property can be added to the property's cost base for capital gains tax purposes, which reduces your CGT liability when you eventually sell.
This makes accurate record-keeping from day one essential. Keep all settlement documents, duty receipts, and conveyancing invoices in a safe place for future reference.
For off-the-plan properties — where you sign a contract before the building is complete — stamp duty is generally paid at settlement, which may be 12 months or more after signing. This gives buyers more time to save, but the duty is still calculated on the contract price, not the completed market value.
Some concessions may apply for off-the-plan first home buyers depending on the property value at the time of contract. Confirm the applicable rules with your conveyancer before signing.
NSW has some of the highest stamp duty rates in Australia. Here's how it compares at a $750,000 purchase price:
| State | Approx. Duty at $750,000 | First Home Buyer Threshold |
|---|---|---|
| NSW | $29,085 | $650,000 existing / $800,000 new |
| VIC | ~$40,070 | $600,000 |
| QLD | ~$17,325 | $700,000 |
| WA | ~$26,855 | $430,000 |
| SA | ~$32,330 | $650,000 |
| ACT | ~$25,600 | No stamp duty for FHBs (replaced by land tax) |
Approximate figures only. Rates and thresholds change — always verify with each state's revenue authority before purchasing.
Enter your purchase price and buyer type for an exact estimate — including first home buyer concessions.
Open Free Stamp Duty Calculator →Generally, no. Stamp duty must be paid at settlement from your own funds. Some lenders factor it into borrowing capacity assessments, but it cannot be added directly to your mortgage principal. Budget for it separately when saving your deposit.
Revenue NSW charges interest on late payments. The rate is set quarterly. If you're struggling to pay, contact Revenue NSW before the deadline — payment arrangements may be available in some circumstances.
Yes. Stamp duty applies regardless of whether you're buying as an individual, through a company, or through a trust. Trusts with foreign beneficiaries may also attract the foreign purchaser surcharge. Always seek legal advice when purchasing through a non-individual structure.
Not immediately. For owner-occupiers, it is not deductible at all. For investors, it is not deductible in the year paid, but it can be added to the cost base of the property, reducing capital gains tax on eventual sale.
The partial concession applies on a sliding scale. For example, a first home buyer purchasing an existing property for $720,000 (between $650,000 and $800,000) pays a reduced rate — not the full standard rate. Use the calculator above for your exact figure.
It depends. Transfers between spouses or de facto partners with no change in beneficial ownership are often exempt. Other family transfers — such as gifting property to adult children — may attract standard stamp duty. Revenue NSW has specific guidance on family transfers.
For most purchases, within three months of the contract date. For off-the-plan purchases, at settlement or up to 12 months after the contract — whichever comes first. Your conveyancer handles the payment during settlement.
They are separate schemes. The FHOG is a cash grant of $10,000 for eligible first home buyers purchasing a new home valued up to $600,000, or building a new home with a total value up to $750,000. The stamp duty concession reduces or eliminates the transfer duty you pay. You can potentially access both if you qualify.
Mike Backman — Founder of Aussie Property & Crypto Calc. Mike researches Australian property, taxation and personal finance and maintains all calculators using ATO, ASIC, RBA and state government data.
Last updated: 19 July 2026 · About this site · Report an error