Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
What Is Stamp Duty (Transfer Duty) in NSW?
Current NSW stamp duty rates, exemptions, and thresholds for 2026. Published by Lend & Loan (80 five-star reviews, ACL 511092). First home buyers pay $0 stamp duty on properties up to $800,000.
Stamp duty, officially called "transfer duty" by Revenue NSW, is a state government tax paid when you purchase property or land. It is calculated on the property's purchase price (or market value, whichever is higher) and is payable within three months of the contract date. For most buyers, your solicitor or conveyancer arranges payment at settlement.
Stamp duty is one of the largest upfront costs of buying property in NSW. On a median-priced Sydney house it can exceed $50,000. Understanding how it is calculated, and what exemptions or concessions you may qualify for, is essential to accurate budgeting.
Stamp duty catches buyers off guard more than any other cost. I see clients budget perfectly for their deposit and then realise they need an additional $30,000 to $70,000 for duty. Always factor stamp duty into your total funds required before you start searching. If you are a first home buyer under $800K, you may pay nothing at all.
NSW Stamp Duty Rate Table 2026
The following table shows the standard transfer duty rates for residential property purchases in NSW. These rates apply to Australian citizens and permanent residents purchasing established or new properties.
| Property Value | Rate |
|---|---|
| $0 to $17,000 | 1.25% of the property value |
| $17,001 to $36,000 | $212.50 + 1.5% of value over $17,000 |
| $36,001 to $97,000 | $497.50 + 1.75% of value over $36,000 |
| $97,001 to $364,000 | $1,565 + 3.5% of value over $97,000 |
| $364,001 to $1,064,000 | $10,910 + 4.5% of value over $364,000 |
| $1,064,001 to $3,301,000 | $42,410 + 5.5% of value over $1,064,000 |
| Over $3,301,000 | 5.5% of the full property value (premium rate) |
These are marginal rates, meaning each bracket only applies to the portion of the price within that range. The total duty is the sum of each bracket's contribution.
First Home Buyer Exemptions and Concessions
NSW offers significant stamp duty relief for eligible first home buyers. The rules are straightforward.
Full Exemption: Under $800,000
If you are an eligible first home buyer and the property (new or established) costs $800,000 or less, you pay zero stamp duty. This applies to houses, apartments, townhouses and vacant land (with a lower threshold for land). You must be an Australian citizen or permanent resident, aged 18 or over, and you must not have previously owned residential property in Australia or received a first home buyer grant or concession.
Sliding Scale Concession: $800,001 to $1,000,000
Between $800,001 and $1,000,000 a sliding scale concession reduces the duty payable. The concession decreases progressively as the price approaches $1,000,000. At $800,001 you pay almost nothing; at $999,999 you pay close to the full amount. The formula is: full duty minus (full duty multiplied by ($1,000,000 minus purchase price) divided by $200,000).
No Concession: Above $1,000,000
If the property costs more than $1,000,000, you pay full stamp duty regardless of whether it is your first home. No first home buyer concession applies above this threshold.
Worked Examples: Real Sydney Price Points
These examples show what stamp duty looks like at typical Sydney purchase prices in 2026.
$650,000 apartment in Alexandria
First home buyer, eligible for full exemption
$950,000 townhouse in Dulwich Hill
First home buyer, sliding scale concession
$1,500,000 house in Balmain
No first home buyer concession at this price
$2,500,000 house in Mosman
Upper bracket, standard rates
Off-the-Plan Concessions
If you purchase an apartment or townhouse off the plan in NSW, stamp duty is calculated on the land value component at the date of the contract, not the total purchase price. Since the land value is typically 30% to 60% of the total contract price (depending on the development), this can save you tens of thousands of dollars.
For example, a $900,000 off-the-plan apartment where the land value at contract date is $450,000 would attract stamp duty based on $450,000, not $900,000. That reduces the duty from approximately $35,510 to approximately $14,738. The concession applies to both owner-occupiers and investors.
To claim the concession, the contract must be entered into before the property's completion. Your solicitor must lodge the appropriate application with Revenue NSW at settlement.
Foreign Buyer Surcharge (8%)
Non-Australian citizens who are not permanent residents pay an additional 8% surcharge on top of the standard stamp duty. This applies to foreign persons, temporary visa holders and foreign-controlled entities purchasing residential property in NSW.
On a $1,000,000 property, the surcharge adds $80,000 to the standard duty of approximately $40,490, bringing the total to approximately $120,490. The surcharge applies to the full purchase price.
If you hold a temporary visa and are planning to purchase, we can structure your application to account for this cost and help you understand whether any exemptions apply to your situation.
Premium Property Duty: Above $3,301,000
Properties valued above $3,301,000 attract a flat rate of 5.5% on the entire purchase price, not just the portion above $3,301,000. This is sometimes called the "premium property rate." For a $4,000,000 property, the duty is $220,000 (5.5% of $4,000,000).
This flat rate replaces the marginal calculation entirely once the price exceeds the threshold, which means there is a significant jump in duty at the $3,301,000 mark. If you are purchasing near this threshold, it is worth understanding the exact impact.
How Stamp Duty Affects Your Borrowing
Stamp duty is not included in your loan amount by default. It is an additional cost on top of your deposit and must typically be paid from your own savings. This means your total "funds to complete" calculation is: deposit + stamp duty + legal fees + other costs.
For a $1,200,000 purchase with a 20% deposit:
- Deposit: $240,000
- Stamp duty: ~$52,890
- Legal/conveyancing: $2,000 to $3,000
- Other costs: $1,500 to $3,000
- Total funds required: ~$298,000 to $299,000
Some lenders allow stamp duty to be capitalised (added to the loan), but this increases your total borrowing, may push you into a higher LVR bracket and could trigger LMI. In most cases it is more cost-effective to pay stamp duty from savings.
If you are buying with a smaller deposit (5% to 10%), stamp duty on top of LMI can make the total upfront cost significantly higher than expected. Use our Borrowing Power Calculator and LMI Calculator to model the full picture.
I always tell clients: work backwards from the total funds required, not just the deposit percentage. A buyer who has saved $200,000 for a $1M property thinks they have 20% deposit. But after stamp duty (~$40,490) and costs (~$5,000), their effective deposit drops to about $154,500, which is 15.45%. That means LMI applies unless they have a guarantor or professional LMI waiver. Know the full number before you search.
When Is Stamp Duty Due?
Stamp duty is payable within three months of the contract date (the date of exchange). For most residential purchases, your solicitor or conveyancer arranges payment at settlement, which typically occurs six weeks after exchange.
If settlement is delayed beyond three months, interest charges may apply. Revenue NSW charges a penalty rate on late payments. If you anticipate a delay (for example, on an extended settlement), your solicitor can arrange payment before settlement to avoid penalties.
NSW First Home Owner Grant (FHOG)
Separate from the stamp duty exemption, NSW offers a $10,000 First Home Owner Grant for eligible first home buyers purchasing or building a new home valued at $600,000 or less. The grant can be used alongside the stamp duty exemption, and they stack. A first home buyer purchasing a new $580,000 apartment pays $0 stamp duty and receives $10,000 FHOG, a combined saving of over $30,000. See our FHOG NSW 2026 guide for full details.
Tips to Reduce Your Stamp Duty
- Buy under $800K as a first home buyer: Zero duty saves you $20,000 to $30,000.
- Consider off-the-plan: Duty calculated on land value only, potentially halving the bill.
- Check vacant land thresholds: Buying land and building separately can result in lower total duty than buying an established property at the same total cost.
- Use the First Home Super Saver Scheme: While it does not reduce duty directly, it helps you save the deposit faster, freeing up savings for stamp duty.
- Structure correctly for couples: If one partner is a first home buyer and the other is not, the exemption may not apply. Get advice before signing contracts.
