Stamp Duty in Australia

What stamp duty is

Stamp duty — formally called transfer duty in NSW, QLD, ACT and TAS, land transfer duty in Victoria, and conveyance duty in SA — is a state-government tax on property transactions. When the legal title to land or a dwelling changes hands, the new owner (almost always the buyer) pays a percentage of the dutiable value to the state or territory revenue office. It is one of the largest upfront costs in buying property in Australia and, for most metro purchases, is two to five times bigger than every other settlement cost combined.

Each state and territory sets its own schedule, its own concessions and its own surcharges. There is no national duty — the Constitution makes property transactions a state matter. As a result the same $750,000 home costs about $48,670 in duty in Melbourne, $26,235 in Sydney for an established home, $25,900 in Brisbane for an owner-occupier home, and $27,265 in Perth. The differences are large, persistent, and material in deciding whether and where to buy.

Stamp duty is paid from cash savings at or near settlement. Importantly, you cannot add it to your home loan in most cases — it is a state liability that has to clear before title transfer can be registered. Lenders sometimes structure a separate, smaller "settlement gap" facility but it is not the same as borrowing the duty itself.

How stamp duty is calculated

All Australian states use a progressive marginal-bracket schedule applied to the dutiable value. The dutiable value is normally the contract price; it can be the higher of contract price and market value for related-party transfers, gifts, or below-market sales. The bracket bands are different in every state but the structure is the same: a low percentage on the first slice, stepping up at each threshold, with a top marginal rate reserved for high-value property.

NSW, for example, charges 1.25% on the first $16,000, then 1.5% on the slice to $35,000, 1.75% to $93,000, 3.5% to $351,000, 4.5% to $1,168,000, and a "premium" 5.5% on every dollar above $1.168M. Victoria runs 1.4% on the first $25,000, climbing to 6.0% in the $440K–$960K band, then a flat 5.5% on the whole price above $960,000 — that flat-rate-on-the-whole-price kink is a Victorian quirk worth knowing about. Queensland operates a two-schedule system that treats owner-occupier home buyers more generously than investors. The Northern Territory uses a continuous polynomial formula for prices up to $525,000 rather than discrete brackets, then flat increments above.

On top of base duty, several states layer surcharges: an 8% foreign-purchaser surcharge in NSW, VIC and TAS; 7% in QLD, WA and SA; and zero in the ACT and NT. There is also a stamp-duty surcharge of typically 9–11% applied to the LMI premium in every state except ACT and NT, which is a separate calculation done at the same time.

Rates by state — 2025–26 at a glance

A side-by-side of the top marginal rate, the FHB threshold and the foreign-buyer surcharge as at May 2026:

For exact bracketed calculations, use the all-state calculator or one of the eight state-specific pages (NSW, VIC, QLD, WA, SA, TAS, ACT, NT).

Worked example — a Sydney median house

Take the Sydney median house price at $1,180,000 in early 2026 (CoreLogic). For an Australian-resident owner-occupier the NSW schedule applies bracket by bracket:

The premium-rate band only kicks in for the last $12,000 of price in this example, adding $660. On a $3M home the premium-rate impact is much larger — roughly $18,300 more than the linear 4.5% rate would produce.

An eligible first home buyer at $1.18M gets no concession (above the $1M cliff), so pays the full $47,955. A foreign buyer adds an 8% surcharge of $94,400 for a total of $142,355, plus a 4% annual land-tax surcharge while they own the property.

First home buyer concessions

Every state offers either a full exemption or a meaningful discount for eligible first home buyers. Eligibility tests are similar across jurisdictions: Australian citizenship or permanent residency, never previously owned residential property in Australia, intention to live in the property as a principal place of residence for at least six months (usually within twelve months of settlement). Specific thresholds and the new-vs-established treatment vary substantially:

• NSW — full exemption up to $800,000; tapered concession $800K–$999,999; nothing above $1M. Applies to both new and established homes.
• VIC — full exemption up to $600,000; tapered concession $600K–$749,999. Pairs with a separate off-the-plan dutiable-value deduction for new apartments.
• QLD — full exemption to $700,000 on established homes (taper to $799,999); uncapped on new builds — a $1.5M new home attracts zero duty for a qualifying FHB.
• WA — $430,000 full, taper to $530,000. Lowest nominal cap but tracks lower Perth medians.
• SA — uncapped on new homes since 6 June 2024 (most generous in Australia); nothing on established homes — full duty applies even for FHBs.
• TAS — binary exemption up to $750,000 on both new and established homes; nothing at $750,001+ (no taper).
• ACT — Home Buyer Concession Scheme up to $1,020,000 (binary, highest nominal cap), but requires 12 months prior ACT residency.
• NT — new homes and vacant land used to build a first home up to $650,000; established homes ineligible.

The federal First Home Guarantee, administered by Housing Australia, is a separate scheme that lets eligible FHBs avoid Lenders Mortgage Insurance with a 5% deposit. It stacks cleanly with state stamp-duty concessions and is uncapped on places for 2024–25.

Foreign buyer surcharges

"Foreign person" is defined separately in each state's Duties Act but the practical effect is the same: Australian citizens, permanent residents and New Zealand Special Category Visa holders are not foreign; everyone else (including dual-citizens not ordinarily resident in Australia) is. Foreign buyers pay an 8% surcharge in NSW, VIC and TAS, 7% in QLD, WA and SA, and zero in the ACT and NT. Foreign buyers also typically pay an additional annual land-tax surcharge of 2–4% — the upfront duty is only part of the picture.

FIRB approval and federal application fees are required regardless of the state surcharge regime — those operate at the Commonwealth level under the Foreign Acquisitions and Takeovers Act 1975. The state surcharge is separate from and additional to the federal application fee.

Off-the-plan rules

Buying an apartment "off the plan" — before construction is complete — triggers stamp duty in every state, but the rules around when the duty is calculated and what concessions apply differ. Victoria runs the most generous regime, allowing eligible owner-occupier off-the-plan buyers to deduct the value of construction not yet completed at the contract date from the dutiable value. On a typical new apartment bought when only 30% complete, the dutiable value can drop to 30–40% of the sale price — a 50–70% reduction in duty. WA runs a separate 75% (capped at $50,000) off-the-plan rebate that has been extended several times. NSW allows up to 12-month payment deferral on eligible owner-occupier off-the-plan purchases. SA offers a separate off-the-plan apartment concession in approved precincts. QLD has no Victorian-style deduction — duty is on the contract price under the home-buyer or general schedule.

When payment is due

The deadline varies significantly: NSW within three months of contract for existing property (with the off-the-plan deferral for eligible buyers); VIC within 30 days of settlement; QLD within 30 days of contract date; WA within two months of the dutiable transaction; SA within two months of the dutiable transaction; TAS within three months of the contract; ACT within 14 days of settlement; NT within 60 days of the dutiable transaction. Conveyancers and solicitors typically lodge and pay through the relevant state's online portal (Revenue NSW Online, SRO Victoria's State Revenue System, OSR Online for QLD, etc.) as part of the PEXA settlement workflow.

Late payment in every state attracts interest under the relevant Taxation Administration Act, often with the option of a penalty for sustained non-compliance. In practice the duty is almost always paid at or just before settlement because the title transfer cannot be registered until duty is cleared.

Common pitfalls

The "cliff" at the FHB threshold. Most state FHB schemes either taper sharply or operate binary. In NSW, buying at $1,000,001 instead of $999,999 costs the FHB concession entirely — about $39,735 more in duty. In Tasmania the cliff is even sharper because there's no taper at all: $750,001 attracts the full $28,898 versus zero at $750,000. Watch for this in negotiations.

Treating the dutiable value as the contract price. Usually it is, but not always. Related-party transfers, gifts and below-market sales use market value. Off-the-plan in Victoria can be lower than contract price. Vacant land with a separate building contract may be assessed differently than land with an existing dwelling.

Foreign-person status is broader than "not Australian". If you have permanent residency but live overseas, you may still be a foreign person for state purposes. Dual citizens not ordinarily resident in Australia are caught. So are some Australian companies majority-owned by foreign parties. Always check the precise state definition.

LMI duty is separate. The stamp-duty surcharge on the LMI premium (9–11% in most states) is calculated in addition to the property transfer duty. It's small in dollar terms ($1,000–$3,000 on a typical high-LVR loan) but easy to forget when budgeting settlement costs.

Frequently asked questions