When you are calculating how much you can afford to spend on a property, the purchase price is not the only number to consider. One of the highest additional costs for many NSW property buyers is transfer duty, commonly known as stamp duty.
Depending on the value of the property and your circumstances, this can add tens of thousands of dollars to the upfront cost of buying. However, for some first home buyers, an exemption or concession may significantly reduce what you pay. Understanding stamp duty early can help you set a more realistic purchasing budget and avoid an unwelcome surprise as settlement approaches. Here is what NSW property buyers need to know.
What is stamp duty in NSW?
Stamp duty is a state tax charged on a range of transactions involving property. If you are buying a home, investment property, land in NSW, or transferring property, you will generally need to pay transfer duty unless an exemption or concession applies.
The buyer or person acquiring the property is responsible for the duty, not the seller. In a typical conveyancing transaction, your property lawyer or conveyancer will calculate the amount payable and usually arrange for the duty to be paid to Revenue NSW as part of the settlement process.
How is stamp duty calculated in NSW?
Transfer duty is not charged at a fixed rate. In NSW, a sliding scale is used, with the amount of duty increasing as the dutiable value of the property increases. The dutiable value is generally the higher of:
- the price you have agreed to pay for the property (if purchasing via a contract for sale); or
- its market value (if acquiring via transfer using a registered valuation).
This distinction can be important where property is being transferred using a registered valuation without any consideration or below market costs. It is important in this scenario to note that stamp duty will be payable on the value of the registered valuation, rather than the price paid via the transfer. For example, in some transactions between family members. For contracts dated during the 2026–27 financial year, the general transfer duty rates are:
| Dutiable value | Transfer duty |
|---|---|
| $0–$18,000 | $1.25 for every $100, subject to a $20 minimum |
| $18,001–$38,000 | $225 plus $1.50 for every $100 over $18,000 |
| $38,001–$103,000 | $525 plus $1.75 for every $100 over $38,000 |
| $103,001–$387,000 | $1,662 plus $3.50 for every $100 over $103,000 |
| $387,001–$1,290,000 | $11,602 plus $4.50 for every $100 over $387,000 |
| Over $1,290,000 | $52,237 plus $5.50 for every $100 over $1,290,000 |
These thresholds are adjusted periodically, so it is important to use the rates that apply to the date of your transaction rather than relying on an old calculation.
How to calculate stamp duty
Revenue NSW provides an online transfer duty calculator which can help you estimate the amount payable based on the current rates.
Understanding stamp duty is an important part of budgeting for a property purchase. In the latest episode of The Property Brief, our Property Law team explains what NSW buyers should know about transfer duty and why it’s important to consider these costs before committing to a purchase.
Is stamp duty different for premium properties?
It can be. NSW also has a premium property duty rate for residential property above a specified value.
For the 2026–27 financial year, the premium threshold is $3.87 million. For residential property above that threshold, the applicable calculation is $194,137 plus $7 for every $100, or part of $100, by which the dutiable value exceeds $3.87 million. The threshold is indexed, so buyers considering higher-value residential property should check the rate applying to their transaction.
Do first home buyers pay stamp duty in NSW?
Not necessarily. Eligible first home buyers may receive an exemption or concession under the NSW First Home Buyers Assistance Scheme. For contracts exchanged on or after 1 July 2023, eligible first home buyers purchasing a new or existing home can currently receive:
- a full transfer duty exemption for a home valued at $800,000 or less; or
- a concessional rate of transfer duty for a home valued above $800,000 but below $1 million.
For eligible first home buyers purchasing vacant land on which they intend to build a home:
- land valued at $350,000 or less may qualify for a full exemption; and
- land valued above $350,000 but below $450,000 may qualify for a concessional rate.
The property price is only one part of the eligibility test.
Who is eligible for the First Home Buyers Assistance Scheme?
There are a number of eligibility requirements. Among other things, Revenue NSW currently requires that:
- the purchase is of a new or existing home, or eligible vacant land, in NSW;
- the property’s value falls within the applicable thresholds;
- the transfer is for the whole property;
- the purchaser is an individual rather than a company or trust, subject to limited waiver provisions;
- the purchaser is generally at least 18 years old;
- the purchaser and their spouse or partner have not previously owned or co-owned residential property in Australia;
- the purchaser and their spouse or partner have not previously received an exemption or concession under the scheme;
- at least one eligible first home buyer is an Australian citizen or permanent resident; and
- the relevant residence requirements are met.
Eligibility can become more complicated where there is more than one purchaser or one person has previously owned property. If you are relying on the concession to make your purchase affordable, confirm your eligibility before committing to the transaction.
Do you have to live in the property?
The First Home Buyers Assistance Scheme includes residence requirements for new and existing homes. This means the scheme is not simply available because a property is your first purchase. You need to satisfy the applicable eligibility and occupation requirements.
If you are purchasing your first property as an investment rather than as your home, do not assume that you will qualify for the first home buyer duty exemption. Your property lawyer or conveyancer can help you understand the requirements and prepare the relevant application where appropriate (if not already arranged by your broker).
When do you pay stamp duty in NSW?
For a property transfer, transfer duty generally needs to be paid by the earlier of settlement or three months after the contract is signed. In most standard property purchases that settle within that period, duty is dealt with as part of the settlement process.
Your property lawyer or conveyancer will usually arrange payment to Revenue NSW on your behalf. It is important to have the funds available when required.
Is stamp duty included in your home loan?
Do not assume your lender will simply add stamp duty to the amount you are borrowing. Your borrowing arrangements are a separate matter between you and your lender. When budgeting for a purchase, you should consider not only your deposit but also the additional costs of completing the transaction, which can include:
- transfer duty;
- legal or conveyancing fees;
- building and pest reports;
- strata reports where relevant;
- registration and search fees;
- lender costs; and
- adjustments made at settlement.
The costs applicable to your purchase will depend on the property and your circumstances. This is why the maximum price a bank is prepared to lend against is not necessarily the same as the maximum purchase price you can comfortably afford. Beyond budgeting for the purchase, it’s also important to understand the property you’re buying. Read our guide to property due diligence in NSW for the key checks buyers should consider before committing.
What if you’re buying with someone else?
How a property is purchased and who is acquiring it can affect eligibility for exemptions and concessions. This is particularly important for first home buyers. For example, the First Home Buyers Assistance Scheme considers the circumstances of purchasers and their spouses or partners, including previous residential property ownership.
If you are purchasing with a partner, family member or another person and you are relying on a first home buyer concession, check the eligibility requirements before exchange. There can also be important ownership considerations around whether purchasers hold property as joint tenants or tenants in common. The right ownership structure depends on your circumstances and can have consequences beyond stamp duty, so it is worth obtaining legal advice before the contract is finalised.
Are there other stamp duty exemptions in NSW?
Yes. First Home Buyer Assistance is only one part of the NSW transfer duty framework. Exemptions or concessions can apply to some other types of transfers where the legislative requirements are satisfied. For example, particular exemptions may be available for certain transfers between spouses or de facto partners, including some transfers of a principal place of residence into equal ownership.
Other exemptions can apply in particular circumstances involving deceased estates or relationship breakdowns. These exemptions have specific eligibility requirements. A transfer being between family members does not, by itself, mean that no duty is payable. If property is being transferred rather than sold through an ordinary market transaction, obtain advice about the duty consequences before completing the transfer.
What about foreign purchasers?
Foreign purchasers of residential property can face additional duty obligations. A person who is a foreign person for NSW surcharge purchaser duty purposes may have to pay surcharge purchaser duty in addition to ordinary transfer duty. As at September 2026, the NSW surcharge purchaser duty rate is 9% of the dutiable value of the residential-related property, unless an exemption applies.
The rules determining whether someone is a foreign person can be complex and can depend on matters including residency and visa circumstances. If this may apply to you, it is important to establish the position early because the additional amount can be substantial.
Do not leave stamp duty until settlement
Stamp duty is not the most exciting part of buying property, but it can have a major impact on your budget. Before you commit to a purchase, understand:
- approximately how much transfer duty you will need to pay;
- whether you may qualify for an exemption or concession;
- what other transaction costs you need to allow for; and
- when those amounts will need to be available.
Working this out early means you can make offers with a clearer picture of the true cost of the purchase. Before committing to a purchase, it’s also important to understand the terms of your contract. Read our guide to what to check in a NSW property contract before you sign for more information.
Buying property in NSW?
At Southern Waters Legal, our Property Law team can guide you through the legal aspects of buying property, from reviewing your contract and explaining the conveyancing process to helping you understand the transfer duty requirements that may apply to your purchase.
If you are preparing to buy property in NSW, contact our Property Law team before signing a contract so you can make informed decisions about your purchase and the costs involved.
This article provides general information only and does not constitute legal or financial advice. Transfer duty rates, thresholds and eligibility requirements can change. The amount payable will depend on the transaction and your individual circumstances. Information is current as at 03 November 2026.
