Stamp duty (also called "transfer duty" or "land transfer duty") is a state-level tax on property purchases in Australia. Every state and territory charges it; the rates and rules differ in each jurisdiction. For most Australian buyers it's the second-largest upfront cost after the deposit, often larger than legal fees, building inspections, and lender fees combined.
How stamp duty works
When you buy a property, the state revenue office charges a tax based on the purchase price (or the property's market value, whichever is higher). The tax is progressive — low rates on the first slice of value, higher rates as the price climbs. Each state has its own schedule.
A simplified version of NSW's schedule for owner-occupied residential property looks something like:
| Property price slice | Rate |
|---|---|
| First $14,000 | 1.25% |
| $14,001–$32,000 | 1.50% |
| $32,001–$85,000 | 1.75% |
| $85,001–$319,000 | 3.50% |
| $319,001–$1,064,000 | 4.50% |
| $1,064,001–$3,194,000 | 5.50% |
| Above $3,194,000 | 7.00% |
So a $1m property in NSW attracts duty across multiple brackets — roughly $40,000 in total. Each state has equivalent (but different) schedules. The Stamp Duty Calculator handles every state's current rates.
Concessions and exemptions
Most states offer concessions for first home buyers purchasing under a price cap. The cap and amount vary:
- Victoria — full exemption under $600K, partial $600K–$750K
- NSW — First Home Buyer Choice scheme: pay annual property tax instead of stamp duty (eligible buyers under $1.5M property)
- Queensland — full concession under $700K, partial up to $800K
- Western Australia — full exemption under $430K, partial up to $530K
- South Australia — partial concession on FHB purchases under $700K
- Tasmania, ACT, NT — various FHB schemes with different caps
Some states also offer:
- Off-the-plan concessions for buyers of new apartments/townhouses (Victoria most notable)
- Pensioner concessions for downsizers
- Family farm transfer exemptions
The rules change frequently — state budgets often adjust caps, rates, or scheme eligibility. The calculator above is updated each financial year.
Surcharges
On top of standard duty, some buyers pay additional surcharges:
- Foreign investor surcharge: 7–8% additional duty for non-Australian-citizen/non-PR buyers in most states.
- Premium property duty (NSW only): 7% rate on the slice above $3.194M.
- Vacant residential land tax (Victoria): separate ongoing tax, not stamp duty, but layered on top.
Why stamp duty matters for borrowers
For first home buyers without a concession, stamp duty is often the cost that pushes total cash required above the 20% deposit. A $800K Melbourne property with a 20% deposit needs:
- $160,000 deposit
- ~$40,000 stamp duty (no FHB concession)
- $1,500 conveyancing
- $500 building/pest inspection
- $300 mortgage registration
That's $202,300 of cash — $42,000 more than the deposit alone. Many FHBs miss this when planning their savings.
For investment buyers, stamp duty is added to the property's cost base for capital gains tax purposes — recovered on eventual sale, but not deductible against income while you hold the property.
Calculating yours
The exact amount depends on:
- Property price (or value, whichever is higher)
- State or territory where the property is located
- Buyer type (owner-occupier, investor, FHB, foreign buyer)
- Property type (new vs. established, residential vs. commercial)
The Stamp Duty Calculator handles every combination. For full upfront cost modelling including stamp duty plus LMI plus legal fees, see the Property Buying Cost Calculator.
Frequently asked questions
Who pays stamp duty?
The buyer pays stamp duty, almost always. It's payable on settlement and is one of the largest upfront costs in any Australian property transaction. On a typical Sydney property at $1m it's roughly $40,000–$50,000; on a Melbourne $800K property it's roughly $35,000–$45,000 (less for FHBs with concessions). Vendors pay capital gains tax instead — different mechanism, similar magnitude.
How is stamp duty calculated?
Each state has its own tiered rate schedule that applies to the property's purchase price (or market value if higher). The rate is progressive — low rates on the first slice of value, higher rates as the price climbs. There's no single national formula. The [Stamp Duty Calculator](/stamp-duty/) handles every state's current rates and concessions.
Do first home buyers pay stamp duty?
Often partially or not at all, depending on state and price. Victoria: full exemption under $600K, partial $600K–$750K. NSW: First Home Buyer Choice scheme lets eligible FHBs pay an annual property tax instead of upfront duty. Queensland: full concession under $700K. WA: exemption under $430K, partial up to $530K. Each state's caps and rules differ — and they change frequently.
Why is stamp duty so much higher in NSW and Victoria?
Higher property prices push more of the purchase into the top rate tiers. The schedules themselves aren't dramatically different across states; what changes is the price you're paying. A $1.5M property attracts much more duty than a $500K one because the marginal rates on the top brackets are 5–6%. NSW also has additional duty on properties above $3M (premium property duty) that some other states lack.
When is stamp duty paid?
On settlement, typically through your conveyancer or solicitor. Most buyers don't write a separate stamp duty cheque — the conveyancer handles the transfer to the state revenue office as part of the settlement disbursements. The exact payment timing varies by state; some allow up to 30 days post-settlement, others require it at settlement.
Can I borrow money to pay stamp duty?
Yes, in theory — you can include stamp duty in your loan if your overall LVR and serviceability allow it. In practice, most lenders calculate LVR on property value alone, so the stamp duty money has to come from your savings (or be borrowed separately, which adds to your loan and may push you over LMI thresholds). Many FHBs are surprised that the 'deposit' they need is actually deposit + stamp duty + conveyancing + LMI — often $50K–$70K more than the 20% deposit alone.
Are there exemptions for off-the-plan or new builds?
Some states. Victoria offers an off-the-plan duty concession for owner-occupiers buying apartments and townhouses, calculated on the dutiable value at contract date (often much lower than completed value). NSW has similar concessions for FHBs buying new properties. Each state's rules are specific and change — check current state revenue office guidance.
Do foreign buyers pay extra stamp duty?
Yes, in every state. Foreign buyers pay a surcharge on top of standard duty, typically 7–8% in NSW, 8% in Victoria, 7% in Queensland. This is the 'foreign investor surcharge' and applies to non-Australian-citizen, non-permanent-resident buyers. It's a meaningful deterrent and one of the main reasons property data slices residential foreign-buyer activity at low single-digit percentages of the market.
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Last updated: 16 May 2026