What is stamp duty and when do I pay it?

Stamp duty (transfer duty) is a state tax on property purchases. You pay it when you buy property, typically at settlement. The amount depends on the property value, location, and your circumstances.

Do first home buyers get stamp duty concessions?

Yes, most states offer concessions for eligible first home buyers. Thresholds, property-type rules and residence requirements differ by state, so check the relevant revenue office before relying on a concession.

How much is the foreign buyer surcharge?

Foreign buyer surcharges vary by state and can change separately from ordinary transfer duty rates. They may apply to non-residents, temporary visa holders, foreign corporations or some trusts.

Are there different rates for different property types?

Yes, rates can vary based on property type. New homes and off-the-plan purchases often qualify for additional concessions, while vacant land may have different rate structures.

When do stamp duty rates change?

Stamp duty rates and thresholds are set by state governments and can change with annual budgets. It's important to check current rates when planning a purchase.

Can I avoid stamp duty?

While you can't avoid stamp duty entirely, you may qualify for concessions based on your circumstances (first home buyer, pensioner, etc.) or by purchasing in certain areas or property types.

NSW Stamp Duty Calculator (2026)

How NSW Transfer Duty Works in FY 2026-27

NSW transfer duty (commonly called stamp duty) is a state tax on the dutiable value of a property transfer. It is administered by Revenue NSW and calculated on a sliding scale of brackets, plus a series of surcharges and concessions that can swing the bill by tens of thousands of dollars.

The FY 2026-27 Bracket Structure

Duty is calculated cumulatively. You pay the lower-bracket rates on the portion of value within each bracket, then a higher rate on the excess. The current general schedule:

Up to $18,000: 1.25%, with a $20 minimum
$18,001 – $38,000: $225 + 1.50% on excess
$38,001 – $103,000: $525 + 1.75% on excess
$103,001 – $387,000: $1,662 + 3.50% on excess
$387,001 – $1,290,000: $11,602 + 4.50% on excess
$1,290,001 – $3,870,000: $52,237 + 5.50% on excess
Above $3,870,000 (residential): $194,137 + 7% on the excess

First Home Buyers Assistance Scheme (FHBAS)

NSW abolished the temporary "First Home Buyer Choice" scheme in mid-2024 and reverted to FHBAS as the primary concession. From 1 July 2023:

Full exemption for new or existing homes up to $800,000
Concessional duty on a linear taper between $800,000 and $1,000,000
No concession above $1,000,000

Vacant land has separate thresholds ($350k full / $450k taper). The statutory taper uses ordinary duty at the exemption threshold as the fixed concession base. At $900,000, this calculator estimates $19,593.50 of ordinary duty for an eligible first home buyer, compared with $34,687 before the concession.

Foreign Purchaser Surcharge

Foreign persons (including most temporary residents) pay an additional 9% surcharge purchaser duty on residential property, applied on top of standard duty. The surcharge increased from 8% to 9% effective 1 January 2025. There is no FHBAS equivalent for foreign buyers — full surcharge applies from the first dollar.

Worked Example: $1,100,000 Sydney House, First Home Buyer

Purchase price: $1,100,000
Buyer status: Australian citizen, first home buyer, owner-occupier
Property type: existing dwelling

Standard duty: $11,602 + 4.50% × ($1,100,000 − $387,000) = $11,602 + $32,085 = $43,687.

FHBAS concession: because the price exceeds $1,000,000, no concession applies. The buyer pays the full $43,687.

If the same buyer negotiated to $999,000, the FHBAS taper applies. At $800,000, eligible buyers pay no ordinary transfer duty. The scheme can materially change the upfront cash requirement, but eligibility and dutiable value should be checked with Revenue NSW or a conveyancer before relying on the estimate.

Common Mistakes

Confusing the dutiable value with the contract price. Duty is assessed on the higher of consideration paid or unencumbered market value. Off-market deals between related parties trigger a market-value reassessment.
Using only the settlement date. Revenue NSW says duty is generally due by the earlier of settlement or three months after signing the contract. Special timing rules can apply to some off-the-plan purchases. Late payment attracts interest at the Revenue NSW general interest charge rate.
Assuming FHBAS applies to investors. It does not. The buyer must move in within 12 months and live there for a continuous 12-month period.
Forgetting the foreign-purchaser surcharge applies to part-foreign buyers. A property purchased jointly by an Australian citizen and a foreign-citizen partner attracts surcharge on the foreign owner's share — typically 50%.
Including the surcharge in the FHBAS calculation. The surcharge is calculated on the full price regardless of any FHBAS concession on the standard duty component.

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