Complete Guide to NSW Stamp Duty (2026)

Stamp duty — officially called transfer duty in New South Wales — is a state government tax you pay when you buy property. It's one of the biggest upfront costs of purchasing a home in NSW, so understanding the rates and available exemptions is essential. Use our NSW stamp duty calculator to get an instant estimate.

How NSW Stamp Duty Is Calculated

Transfer duty in NSW is calculated on the higher of the property's purchase price or its market value. The rates are tiered — you pay progressively more as the property value increases. NSW also applies a premium duty rate for residential properties valued above $3 million.

Current NSW Transfer Duty Rates (2024–25)

These thresholds are indexed annually to Sydney CPI. Always check the Revenue NSW website for the latest figures, or use our NSW calculator for an instant estimate.

First Home Buyer Exemptions & Concessions

NSW offers generous stamp duty relief for first home buyers purchasing a new or existing home:

• Full exemption: No stamp duty on properties valued up to $800,000
• Concession (sliding scale): Reduced duty on properties valued between $800,001 and $1,000,000
• Vacant land: Full exemption up to $350,000; concessions up to $450,000

To qualify, you must be an Australian citizen or permanent resident, aged 18+, and intend to live in the property for at least 6 continuous months within 12 months of settlement. You (and your spouse/partner) must not have previously owned residential property in Australia.

NSW also offers the First Home Owner Grant (FHOG) — a $10,000 grant for new homes valued up to $600,000. This is separate from the stamp duty concession. Learn more in our first home buyer guide.

NSW Property Tax Alternative (First Home Buyer Choice)

From 2023, NSW introduced the First Home Buyer Choice scheme, allowing eligible first home buyers to opt for an annual property tax instead of a lump-sum stamp duty payment. However, this scheme was abolished from 1 July 2023 by the incoming government. Buyers who opted in before that date remain on the annual property tax, but new buyers can no longer choose this option.

Foreign Buyer Surcharge

Foreign persons purchasing residential property in NSW pay an additional 8% surcharge purchaser duty on top of the standard transfer duty. This applies to foreign individuals, foreign corporations, and trustees of foreign trusts. Read our detailed foreign buyer surcharge guide.

Off-the-Plan Concessions

If you buy a property off the plan and intend to live in it, you may defer stamp duty payment for up to 12 months from the contract date. The dutiable value may also be reduced to reflect the incomplete state of construction at the contract date, reducing the amount of duty owed.

When Is Stamp Duty Due?

In NSW, transfer duty must be paid within 3 months of signing the contract for sale. In practice, it is usually paid at settlement, since settlement cannot proceed without the duty being paid. Late payments incur interest charges.

How to Pay NSW Stamp Duty

Your solicitor or conveyancer typically handles the stamp duty payment as part of the settlement process. The duty is paid to Revenue NSW via the electronic duties system. You can also use our NSW stamp duty calculator to estimate the amount before you make an offer on a property.

Tips to Minimise NSW Stamp Duty

• Check if you qualify for the first home buyer exemption — it can save you tens of thousands of dollars.
• Consider buying vacant land and building — FHB exemption thresholds apply separately to land purchases.
• If buying off the plan, take advantage of the deferral and construction-value concessions.
• Factor stamp duty into your budget early — use our calculator to get accurate estimates.

Frequently Asked Questions

How much is stamp duty on a $1 million property in NSW?

For a standard purchase at $1,000,000, stamp duty in NSW is approximately $40,490. First home buyers may pay significantly less or nothing depending on eligibility. Use our calculator for an exact figure.

Is stamp duty tax deductible in NSW?

For your principal place of residence, stamp duty is not tax deductible. For investment properties, stamp duty is added to the cost base and reduces capital gains tax when you sell.

Can I add stamp duty to my home loan?

Some lenders allow you to capitalise stamp duty into your mortgage, but this increases your loan amount and total interest paid. It may also affect your loan-to-value ratio and require Lenders Mortgage Insurance (LMI).