Stamp Duty in NSW: How Much You'll Actually Pay (2026)

What stamp duty actually is

In NSW, what most people call "stamp duty" is technically transfer duty, charged under the Duties Act 1997 (NSW) and administered by Revenue NSW. It's a one-off tax on the transfer of property — payable by the buyer, not the seller — and it applies to almost every residential purchase in the state, whether you're buying a house, an apartment, a townhouse, or vacant land. The duty is calculated on the higher of the contract price or the property's market value, so an arms-length sale at fair market price is the standard basis. There is no Commonwealth stamp duty on real estate; it's a state-level tax, which is why NSW rates differ from Victoria, Queensland, or the ACT.

The 2026 NSW transfer duty brackets

NSW uses a progressive scale — the percentage rate rises as the property value climbs. The figures below are the standard residential transfer duty brackets as of 2026. Revenue NSW publishes the live rates at revenue.nsw.gov.au and indexes the thresholds annually in line with the Consumer Price Index, so always check the current figures before you sign a contract.

• Up to $17,000: $1.25 per $100 (minimum $20)
• $17,001 to $36,000: $212 + $1.50 per $100 over $17,000
• $36,001 to $97,000: $497 + $1.75 per $100 over $36,000
• $97,001 to $364,000: $1,564 + $3.50 per $100 over $97,000
• $364,001 to $1,212,000: $10,909 + $4.50 per $100 over $364,000
• $1,212,001 to $3,636,000: $49,069 + $5.50 per $100 over $1,212,000
• Above $3,636,000 (premium rate): $182,389 + $7.00 per $100 over $3,636,000

Worked example: stamp duty on a $1,200,000 Sydney purchase

Take a $1,200,000 apartment or house — close to the Sydney median for many inner and middle-ring suburbs. Using the 2026 brackets above, the calculation runs like this. The first $364,000 is taxed at the lower brackets and accumulates to $10,909. The remaining $836,000 sits inside the $364,001 to $1,212,000 band at $4.50 per $100 — that's $37,620. Add the two: $48,529. That's the duty payable on a standard $1.2m owner-occupier purchase by an Australian resident, before any concessions. For round numbers: on $1m the duty is roughly $40,490; on $1.5m about $66,529; on $2m around $93,469. Revenue NSW's official calculator returns the same figures to the cent, and your conveyancer confirms them on the settlement statement.

First Home Buyer Assistance Scheme (FHBAS)

If you're buying your first home in NSW, you may pay no stamp duty at all. The First Home Buyer Assistance Scheme grants a full exemption on owner-occupier purchases up to $800,000, and a partial concession on a sliding scale between $800,000 and $1,000,000. The exemption applies to both new and established homes. You and any co-purchaser must be at least 18, must not have previously owned residential property in Australia, must move in within 12 months, and must live there for a continuous 12 months. Confirm the current thresholds with Revenue NSW before you sign — the FHBAS values have been adjusted more than once in recent years.

• Full exemption: established or new home up to $800,000
• Sliding concession: $800,000 to $1,000,000 (duty tapers up to full rate at $1m)
• Vacant land full exemption: up to $350,000
• Vacant land concession: $350,000 to $450,000
• Must be your first-ever residential property anywhere in Australia
• Must occupy as your principal place of residence for 12 continuous months

First Home Owner Grant (New Homes)

Separate from FHBAS, the First Home Owner Grant (New Homes) pays a one-off $10,000 to eligible first home buyers purchasing or building a brand-new home valued at $600,000 or less, or building on land where the combined house-and-land value doesn't exceed $750,000. The grant is paid through Revenue NSW or via your lender at settlement. Because the value cap is low compared to current Sydney prices, in practice the grant is most useful for outer-suburb new builds and house-and-land packages in growth corridors. You can claim both FHBAS and the New Homes Grant on the same eligible purchase.

The annual property tax option — what happened to it

In January 2023 NSW briefly introduced an opt-in scheme called First Home Buyer Choice, which let eligible first home buyers choose an annual property tax instead of paying upfront stamp duty. That scheme was repealed later in 2023 and the more expansive First Home Buyer Assistance Scheme thresholds were restored in its place. As of 2026, there is no active stamp-duty-versus-annual-property-tax choice for new first home buyer transactions in NSW — the FHBAS exemption and concession described above are the current pathway. If you opted in during the brief 2023 window and have continued to pay annual property tax, your existing arrangement continues; for everyone else, transfer duty is the only mechanism.

Foreign-buyer surcharge

If you're not an Australian citizen or permanent resident, you pay an additional surcharge purchaser duty on top of the standard transfer duty. The surcharge is currently 8% of the dutiable value (the higher of price or market value) under section 104J of the Duties Act 1997 (NSW), and applies to most residential acquisitions including by foreign companies and trustees. On a $1,200,000 property a foreign buyer pays the standard $48,529 plus $96,000 in surcharge — total $144,529. Limited exemptions exist for some New Zealand citizens and buyers who later become Australian residents within a defined period; rules are detailed and change periodically. The Foreign Investment Review Board (FIRB) also charges separate approval fees on top of the NSW surcharge. Confirm your status with a conveyancer before exchanging.

Off-the-plan, deceased estates, and family transfers

Several specific transaction types have their own duty treatments. Off-the-plan apartment buyers who intend to live in the property as their principal residence can defer payment for up to 12 months from the contract date (or until settlement, whichever comes first) — useful when the build runs long. Transfers between spouses or de facto partners of the principal place of residence are exempt, provided the property is held as joint tenants or tenants in common after the transfer. Transfers under a binding financial agreement following separation or divorce are also generally exempt. Inheriting property under a will is typically not a dutiable transaction — the executor's transfer to the named beneficiary attracts only nominal duty ($50 in most cases), though a subsequent sale by the beneficiary is dutiable in the normal way.

• Off-the-plan owner-occupier: payment deferral up to 12 months from contract
• Spousal transfer of principal residence: full exemption
• Family law transfer (binding financial agreement): generally exempt
• Deceased estate transfer to beneficiary under a will: nominal $50 duty
• Transfer between related parties at undervalue: duty assessed on market value, not the price

When stamp duty has to be paid

In NSW, transfer duty is payable within three months of the contract date. For most residential purchases, that means duty is paid at or before settlement — which typically lands inside the 42-day standard settlement window, well within the 3-month limit. Your conveyancer or solicitor calculates the exact duty, prepares the duty assessment, and arranges payment to Revenue NSW through the PEXA electronic workspace on settlement day. The buyer's funds (deposit balance plus lender drawdown) include the duty amount; PEXA distributes the money simultaneously to the seller, the seller's mortgagee, the buyer's lender, NSW Land Registry, and Revenue NSW. If a settlement is delayed beyond the 3-month limit, interest accrues on unpaid duty from day 91, so practitioners pay close attention to long-dated settlements and off-the-plan completions.

How your conveyancer handles the payment

You don't pay Revenue NSW directly. Your conveyancer or solicitor lodges the duty assessment online via Revenue NSW's eDuties or the integrated PEXA workflow, then includes the duty amount in the settlement figures sent to your bank. On settlement day, PEXA's electronic workspace transfers funds in one coordinated round — the duty goes to Revenue NSW, the balance of purchase price to the seller, and any lender mortgage discharge to the seller's bank. You see the final breakdown on the settlement statement your conveyancer sends through the week before settlement. There's no separate cheque to write and no government counter to visit.

Common stamp duty traps

A few things trip buyers up regularly in NSW. Stamp duty is not tax-deductible against your income for an owner-occupied home, and for investment properties it forms part of your cost base for capital gains tax — so you only get the benefit when you eventually sell. Adding a co-purchaser who has previously owned property can void your First Home Buyer Assistance Scheme eligibility, even if you personally qualify; the rule applies to all purchasers on the title. Buying off the plan and changing your mind about owner-occupier status before settlement can claw back deferral arrangements. Finally, putting a property into a trust or company structure changes the duty calculation and removes most of the first-home concessions, so always confirm the structure before exchange.

Getting an accurate figure for your purchase

For a precise number, use the Revenue NSW Transfer Duty Calculator at revenue.nsw.gov.au — it accounts for the current brackets, FHBAS, the New Homes Grant, and the foreign-buyer surcharge. Enter your contract price, your buyer status, and the property type. Your conveyancer or solicitor then confirms the figure once they have the executed contract and can verify any concessions. Treat any figure quoted before your conveyancer reviews the contract as an estimate — the FHBAS and surcharge rules are detailed enough that small differences can shift the bill by tens of thousands of dollars.

FAQ

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