NSW Stamp Duty Calculator 2026

How Stamp Duty Works in NSW

Stamp duty in New South Wales, officially known as transfer duty, is a state government tax administered by Revenue NSW. It is charged on every property transaction in the state, including purchases of houses, apartments, townhouses, vacant land, and commercial properties. Transfer duty is one of the largest upfront costs when buying property in NSW, and understanding how it is calculated is essential for budgeting.

NSW transfer duty is calculated on the greater of the purchase price or the market value of the property. The duty is assessed using a marginal (tiered) rate system, meaning different portions of the property value are taxed at different rates. The first $17,000 is taxed at 1.25%, the next $19,000 at 1.5%, and so on up to the premium rate of 7% for the portion above $3.3 million. This progressive structure means the effective duty rate increases as the property value rises.

Current NSW Transfer Duty Rates

The 2026 NSW transfer duty rates consist of seven brackets. For a typical Sydney property purchased at $1,000,000, the transfer duty would be approximately $40,490. The rates are set by the NSW Government and published by Revenue NSW. It is important to note that these rates apply to the dutiable value of the property, which is typically the purchase price unless the property was sold below market value.

Properties valued above $3.3 million attract a premium rate of 7% on the portion above this threshold. This premium tier primarily affects high-value properties in prestige suburbs and is sometimes referred to as the "premium property duty" rate.

First Home Buyer Exemptions and Concessions

NSW offers some of the most generous first home buyer stamp duty concessions in Australia. Eligible first home buyers purchasing a property valued at $800,000 or less are fully exempt from transfer duty -- meaning they pay no stamp duty at all. For properties valued between $800,001 and $1,000,000, a concessional rate applies on a sliding scale, meaning you will pay a reduced amount of duty that gradually increases towards the full rate.

To be eligible for the NSW first home buyer exemption, you must be an Australian citizen or permanent resident, be at least 18 years of age, and intend to move into the property within 12 months and live there for a continuous period of at least six months. You (and your spouse or partner) must not have previously owned residential property in Australia or received a first home buyer grant or concession.

In addition to the stamp duty exemption, NSW first home buyers may be eligible for the First Home Owner Grant (FHOG) of $10,000 for new homes valued up to $600,000. The NSW Government also offers the First Home Buyer Choice program, which allows eligible buyers to opt in to an annual property tax instead of paying upfront transfer duty for properties valued up to $1,500,000.

Foreign Buyer Surcharge

Foreign persons purchasing residential property in NSW are subject to an additional surcharge purchaser duty of 8% on top of the standard transfer duty. A "foreign person" includes individuals who are not Australian citizens or permanent residents, as well as foreign corporations and trustees of foreign trusts. This surcharge applies to the full property value, not just a portion of it.

For example, a foreign buyer purchasing a $1,000,000 property in Sydney would pay approximately $40,490 in standard transfer duty plus $80,000 in foreign buyer surcharge, totalling around $120,490. Temporary visa holders (including those on 457/482 skilled worker visas) are generally classified as foreign persons and are subject to this surcharge unless they qualify for an exemption.

Off-the-Plan Concessions

Buyers purchasing off-the-plan properties in NSW may be eligible for a concession that allows duty to be calculated on the land value component only, rather than the full contract price. This concession applies where the contract settles more than 12 months after the contract date and is designed to encourage new housing supply. The savings can be substantial -- for example, on a $700,000 off-the-plan apartment where the land component is $350,000, duty would be calculated on $350,000 rather than $700,000.

Vacant Land Rates

The same transfer duty rates apply to vacant land purchases in NSW. However, because duty is only charged on the land purchase price and not on subsequent construction costs, buying vacant land and building can result in significantly lower total duty compared to purchasing an equivalent established property. For instance, purchasing vacant land for $500,000 and building a $500,000 home means you pay duty on $500,000 rather than $1,000,000, potentially saving over $20,000 in transfer duty.

Many developers structure house-and-land packages with separate land and building contracts specifically to take advantage of this. The land contract attracts transfer duty, while the building contract does not.

Investment vs Owner-Occupier

In NSW, the standard transfer duty rates are the same regardless of whether you are purchasing as an owner-occupier or investor. However, investors cannot access first home buyer exemptions or concessions, so they will always pay the full standard rate. Owner-occupiers who qualify as first home buyers can save significantly, with potential savings of up to $31,000 or more on properties valued at $800,000 or below.

From a tax perspective, stamp duty on investment properties is not immediately tax-deductible. Instead, it is added to the cost base of the property, which reduces your capital gains tax (CGT) liability when you sell. If you hold the property for more than 12 months, you may also be eligible for the 50% CGT discount.

How and When to Pay

In NSW, transfer duty must be paid within three months of the date of the contract for sale (the exchange date). In practice, your solicitor or conveyancer will arrange payment and lodgement of the transfer documents with Revenue NSW as part of the settlement process. If duty is not paid within the three-month window, interest charges will apply.

You can pay transfer duty via electronic funds transfer through Revenue NSW's online portal, or your legal representative can pay on your behalf. Some buyers choose to capitalise stamp duty into their home loan (add it to the borrowed amount), though this increases the total loan, the loan-to-value ratio (LVR), and may trigger the need for Lenders Mortgage Insurance (LMI).