TL;DR — Key takeaways
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For most NSW buyers, stamp duty is one of the biggest upfront costs they didn’t fully plan for. It sits on top of your deposit, your legal fees, and your building inspection — and it has to be paid at settlement, in cash.
This guide breaks down exactly how stamp duty is calculated in NSW in 2026, what first home buyers are entitled to, and how to work out what you’ll owe before you exchange contracts.
What is stamp duty and when do you pay it?
Stamp duty — officially called transfer duty in NSW — is a state government tax on property purchases. It’s calculated on the higher of the purchase price or market value of the property, and it’s the buyer’s responsibility, not the seller’s.
You pay it at settlement, typically within 30 days of exchanging contracts. Your conveyancer or solicitor lodges the payment with Revenue NSW on your behalf — but you need to have the funds ready before settlement day. It cannot be deferred or ignored. Unpaid stamp duty prevents the property transfer from being registered with the NSW Land Registry.
How is stamp duty calculated in NSW? (2026–27 rates)
NSW uses a progressive sliding scale — the same principle as income tax. You pay a base amount plus a rate on anything above the bracket threshold. The current 2026–27 rates are set by Revenue NSW.
Source: Revenue NSW, 2026–27 financial year. Residential properties above $3,870,000 attract an additional premium duty rate of $7.00 per $100 on the excess.
What does this look like in real numbers?
$500,000 property: approximately $16,687 in stamp duty
$750,000 property: approximately $27,937 in stamp duty
$800,000 property: approximately $30,187 in stamp duty
$1,000,000 property: approximately $39,187 in stamp duty
These figures are for standard (non-first-home-buyer) purchases. Use Rateseeker’s property buying cost calculator to get a full breakdown of what you’ll owe based on your purchase price.
First home buyers: what are you entitled to?
If you’re buying your first home in NSW, the First Home Buyers Assistance Scheme (FHBAS) can save you tens of thousands of dollars — or eliminate your stamp duty bill entirely.
Full exemption — properties up to $800,000. Eligible first home buyers pay zero stamp duty. On an $800,000 purchase, that’s a saving of $30,187 that stays in your pocket.
Sliding concession — $800,001 to $1,000,000. The discount phases out progressively as the price approaches $1,000,000. At $900,000, for example, you still receive a meaningful saving — but the closer you get to $1M, the smaller it becomes.
No concession above $1,000,000. Standard duty applies in full. There is no first home buyer relief at this price point.
To be eligible for FHBAS, you must:
- Be an Australian citizen or permanent resident aged 18 or over
- Never have owned residential property anywhere in Australia
- Intend to move in within 12 months of settlement and live there for at least 12 continuous months
- Be buying as an individual — not through a company or trust
If any co-purchaser has previously owned property in Australia, the scheme is unavailable to the whole purchase. Your conveyancer handles the FHBAS application at settlement — you don’t apply separately.
Can you avoid paying stamp duty in NSW?
There’s no legal way to avoid stamp duty entirely unless you qualify for an exemption. The most common legitimate strategies are:
- FHBAS exemption — full waiver if you’re buying your first home under $800,000
- Negotiate below a threshold — dropping a purchase price from $805,000 to $800,000 saves the entire $30,187 for eligible first home buyers. That’s a negotiation worth having
- House and land packages — duty is calculated on the land value only (not the total build cost), which can significantly reduce the bill
- Family or relationship breakdown transfers — some transfers between spouses or following a relationship breakdown are exempt
What doesn’t work: artificially understating the purchase price to reduce duty. Revenue NSW assesses duty on the higher of the contract price or market value. Any scheme that manipulates the declared value is duty fraud.
Work out what you’ll owe before you exchange. Rateseeker’s property buying cost calculator includes stamp duty, legal fees, and all the upfront costs in one place. Property Buying Cost Calculator |
Frequently asked questions
Stamp duty in NSW is calculated on a sliding scale based on the property’s purchase price. At 2026–27 rates: a $500,000 property attracts approximately $16,687; a $750,000 property approximately $27,937; a $1,000,000 property approximately $39,187. Use Rateseeker’s property buying cost calculator for an exact figure based on your purchase price.
Not on eligible purchases up to $800,000 — the First Home Buyers Assistance Scheme provides a full exemption at this price point. A sliding concession applies between $800,001 and $1,000,000. Above $1,000,000, full stamp duty applies with no first home buyer relief.
Stamp duty is paid at settlement — generally within 30 days of exchanging contracts. Your solicitor or conveyancer arranges the payment to Revenue NSW on your behalf. The property transfer cannot be registered until it is paid, so the funds must be available on settlement day.
There is no legal way to avoid stamp duty unless you qualify for an exemption. The most significant one is the First Home Buyers Assistance Scheme for eligible purchases under $800,000. Some family transfers and relationship breakdown situations are also exempt. Revenue NSW assesses duty on the higher of the purchase price or market value, so understating the purchase price is not a valid strategy.
No. The NSW FHBAS thresholds — full exemption up to $800,000, concession to $1,000,000 — have been in place since July 2023 and remain current for 2026–27. Always confirm with Revenue NSW or your conveyancer before exchanging contracts, as thresholds can change with state budgets.