How NSW Transfer Duty Works in FY 2025-26
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 2025-26 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 $17,000: 1.25%
- $17,001 – $37,000: $212 + 1.50% on excess
- $37,001 – $99,000: $512 + 1.75% on excess
- $99,001 – $372,000: $1,597 + 3.50% on excess
- $372,001 – $1,240,000: $11,152 + 4.50% on excess
- $1,240,001 – $3,721,000: $50,212 + 5.50% on excess
- Above $3,721,000 (residential): premium rate of 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 taper is straightforward: at $900,000 the buyer pays roughly half the standard duty.
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: $11,152 + 4.50% × ($1,100,000 − $372,000) = $11,152 + $32,760 = $43,912.
FHBAS concession: because the price exceeds $1,000,000, no concession applies. The buyer pays the full $43,912.
If the same buyer negotiated to $999,000, FHBAS taper applies and the duty drops by ~$197. Drop further to $800,000 and duty falls to zero. That $200k of price difference unlocks ~$39,000 of concession plus the avoided LMI on the saved deposit — a powerful incentive to buy below the threshold even if it means a slightly smaller property.
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.
- Missing the 3-month payment deadline. Duty is payable within three months of contract date (not settlement). 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.