Stamp duty — officially called transfer duty in most states — is a state government tax charged every time a property changes hands. On a typical Australian home, it adds anywhere from $10,000 to $50,000 or more on top of the purchase price. Yet it remains one of the most commonly underestimated costs in property buying, catching first-timers and experienced investors alike off guard.
This guide breaks down the current rates in every state and territory, explains who qualifies for exemptions and concessions, and covers practical strategies to reduce what you pay. All figures are based on published 2025–26 rate schedules from state revenue offices.
In this guide
What Stamp Duty Is and Why It Exists
Stamp duty (or transfer duty) is a one-off tax levied by state and territory governments when you purchase property. Unlike income tax or GST, which are federal, stamp duty is entirely a state matter — which is why rates and rules vary so dramatically depending on where you buy.
The tax is calculated on the higher of the purchase price or the market value of the property. It is a sliding scale: the more expensive the property, the higher the percentage you pay. For a $600,000 property, you might pay around $20,000 in one state and $13,000 in another. For a $1.2 million property, the range stretches from roughly $40,000 to over $65,000.
State governments rely heavily on stamp duty revenue. In NSW alone, stamp duty generates over $10 billion per year — making it one of the single largest revenue sources for the state. This dependence on property transaction taxes is one reason reform has been so slow, even though economists have criticised stamp duty for decades as one of Australia's most inefficient taxes.
The core criticism is straightforward: stamp duty discourages people from moving. A family that has outgrown their home, a retiree looking to downsize, or a worker who needs to relocate for a job — all face a tax bill of tens of thousands just for transacting. This creates what economists call "lock-in" effects, reducing housing turnover and contributing to inefficient use of the existing housing stock.
State-by-State Rates Overview
Every state and territory uses a progressive rate structure, where the marginal rate increases as the property value rises. Below is a practical summary of approximate stamp duty costs for common purchase prices in each jurisdiction. These are for standard residential purchases by Australian citizens and permanent residents — foreign buyers pay significantly more (covered later).
New South Wales
NSW has among the highest stamp duty in the country for properties above $1 million. On a $700,000 property, expect to pay approximately $26,000–$27,000. On a $1 million property, roughly $40,000. The premium rate of 7% kicks in on the portion above approximately $3.194 million.
NSW also charges a surcharge purchaser duty of 9% for foreign buyers (one of the highest in Australia), on top of the standard rates.
Victoria
Victoria's rates are broadly similar to NSW for lower-value properties but apply a higher marginal rate earlier. On a $700,000 property, expect approximately $37,000–$38,000. Victoria is notably more expensive than NSW for properties in the $600K–$1M band, partly due to changes in recent state budgets. A premium rate of 6.5% applies above approximately $960,000.
Queensland
Queensland is generally more affordable than NSW or VIC for stamp duty. On a $700,000 property, expect approximately $18,000–$19,000. On a $1 million property, roughly $33,000–$34,000. The top marginal rate of 5.75% applies to the portion of value above $1 million.
South Australia
SA's rates sit in the middle of the pack nationally. On a $700,000 property, expect approximately $28,000–$30,000. On a $500,000 property, roughly $21,000–$22,000. SA does not have a separate premium or luxury rate — the top marginal rate of 5.5% applies from $500,000 upward.
Western Australia
WA is moderately priced for stamp duty relative to the eastern states. On a $700,000 property, expect approximately $26,000–$28,000. On a $500,000 property, roughly $17,000–$18,000. The top marginal rate of 5.15% applies above $500,000.
Tasmania
Tasmania has relatively competitive stamp duty rates compared to the mainland states. On a $600,000 property, expect approximately $22,000–$23,000. On a $400,000 property, roughly $13,000–$14,000. The top marginal rate of 4.5% applies above $400,000.
Australian Capital Territory
The ACT is unique in Australia: it is actively phasing out stamp duty over a 20-year period (begun in 2012) and replacing it with higher annual land tax (general rates). While stamp duty still applies, rates have been progressively reduced. On a $700,000 property, expect approximately $17,000–$19,000 — significantly less than NSW or VIC. The ACT is the only jurisdiction where you can see stamp duty falling over time.
Northern Territory
The NT has a standard progressive rate structure, but also offers a stamp duty offset for all homebuyers (not just first-timers). Property values in the NT are generally lower than in southern capitals, so absolute stamp duty bills tend to be smaller. On a $500,000 property, expect approximately $22,000–$23,000 before any applicable offsets.
The variation is enormous. For the same $700,000 property, stamp duty ranges from approximately $17,000 in the ACT to $38,000 in Victoria. That is a $21,000 difference — enough to cover a year of mortgage repayments. Always check the exact rates in your target state before setting your budget.
First Home Buyer Exemptions and Concessions
Every state and territory offers some form of stamp duty relief for eligible first home buyers, but the rules, thresholds, and generosity vary dramatically. Getting these right can save you anywhere from a few thousand dollars to the entire stamp duty bill.
New South Wales — First Home Buyer Assistance Scheme
NSW offers a full stamp duty exemption for first home buyers purchasing new or existing properties valued up to $800,000. For properties between $800,000 and $1,000,000, a sliding-scale concession applies — you pay reduced duty, but not zero. Above $1,000,000, no concession is available.
NSW also introduced the First Home Buyer Choice (property tax option) in late 2022, allowing eligible buyers to opt into paying a smaller annual property tax instead of a lump-sum stamp duty payment. However, the incoming NSW government announced changes to this scheme. Buyers should check the current status with Revenue NSW, as the availability and terms of this option have been subject to political change.
Watch the threshold carefully. In NSW, buying a $799,000 property means zero stamp duty for an eligible first home buyer. Buying a $801,000 property means you owe several thousand dollars. That $2,000 difference in purchase price costs you far more in stamp duty than you might expect. Negotiate with this threshold in mind.
Victoria — First Home Owner Grant + Stamp Duty Concessions
Victoria offers a full stamp duty exemption for first home buyers purchasing properties valued up to $600,000, and a sliding concession for properties between $600,000 and $750,000. Above $750,000, no stamp duty concession applies.
Separately, Victoria offers the First Home Owner Grant (FHOG) of $10,000 for newly built homes valued up to $750,000. This is a cash grant, not a stamp duty concession — you can potentially receive both.
Victoria also has an off-the-plan concession: when buying an apartment or townhouse off-the-plan, you pay stamp duty only on the land value at the time of contract (not the finished product value), which can reduce the duty substantially — sometimes by $10,000–$20,000 on a high-value apartment.
Queensland — First Home Concession + Great Start Grant
Queensland provides a stamp duty concession (not a full exemption) for first home buyers. For properties valued under $550,000, the concession effectively brings stamp duty to zero. Between $550,000 and $700,000, a reduced concession applies. Above $700,000, no concession is available.
Queensland also offers the Queensland First Home Owner Grant (Great Start Grant) of $30,000 for new homes — one of the most generous in the country. This applies to newly built houses, units, and townhouses valued up to $750,000. Importantly, this grant applies to new builds only, not established homes.
New build vs established: In most states, the cash grants (like Victoria's $10,000 FHOG or Queensland's $30,000 Great Start Grant) apply only to newly constructed homes, not established properties. Stamp duty concessions, however, usually apply to both new and existing homes. Make sure you understand which benefits apply to the type of property you are buying.
South Australia
SA provides a full stamp duty exemption for first home buyers on new homes valued up to $650,000, and a concession (sliding scale) for new homes between $650,000 and $700,000. For established homes, there is no stamp duty exemption for first home buyers — but SA does offer the HomeBuilder Grant and a $15,000 First Home Owner Grant for new homes under $650,000.
Western Australia
WA offers a full stamp duty exemption for first home buyers purchasing new or established homes valued up to $430,000 (vacant land up to $300,000). A concessional rate applies for properties valued between $430,000 and $530,000. WA also offers a $10,000 First Home Owner Grant for new homes under $750,000.
Tasmania
Tasmania offers a 50% stamp duty concession for eligible first home buyers on established homes. For new builds, the concession can be more generous. Tasmania also provides a $30,000 First Home Owner Grant for new homes — matching Queensland as one of the highest in Australia.
Australian Capital Territory
The ACT offers the Home Buyer Concession Scheme, which provides a full stamp duty exemption for eligible first home buyers purchasing properties up to $1,000,000 (the threshold is among the most generous in Australia, reflecting Canberra's higher property prices). The buyer must live in the property for at least one year. Income thresholds apply.
Northern Territory
The NT provides a stamp duty offset of up to $18,601 for all homebuyers (first home or otherwise). The First Home Owner Grant in the NT is $10,000 for new homes. The territory's relatively low property values mean that many purchases attract modest stamp duty even without concessions.
Foreign Buyer Surcharges
If you are a foreign citizen, temporary resident, or buying through a foreign-controlled entity, every state and territory applies a surcharge on top of standard stamp duty. These surcharges have increased significantly in recent years. Combined with FIRB application fees and annual vacancy charges, the total additional cost for foreign buyers can be substantial.
| State/Territory | Foreign Buyer Surcharge |
|---|---|
| New South Wales | 9% |
| Victoria | 8% |
| Queensland | 8% |
| South Australia | 7% |
| Western Australia | 7% |
| Tasmania | 8% |
| ACT | Varies (currently under review) |
| Northern Territory | No surcharge |
On a $1 million property in NSW, the foreign buyer surcharge alone adds $90,000 on top of the approximately $40,000 in standard stamp duty — bringing the total transfer duty to roughly $130,000. Some states also apply an annual foreign owner land tax surcharge (separate from the stamp duty surcharge), which adds a recurring cost for the duration of ownership.
Mixed-status couples: If one partner is a citizen/permanent resident and the other is a temporary visa holder, the surcharge treatment varies by state. In some states, you pay the surcharge on the foreign partner's share only; in others, the entire purchase may attract the surcharge. Get legal advice specific to your state before signing a contract.
Strategies to Reduce Stamp Duty
While you cannot avoid stamp duty entirely in most states, there are legitimate strategies to reduce what you pay.
1. Buy below the concession threshold
This is the single most impactful strategy for first home buyers. If you are in NSW and looking at properties around $800,000, buying at $799,000 instead of $810,000 saves you the entire stamp duty bill — potentially $30,000 or more. Every state has these threshold cliffs. Know yours and negotiate accordingly.
2. Buy off-the-plan
In most states, buying an apartment or townhouse off-the-plan means stamp duty is calculated on a lower dutiable value (typically the land value at the time of signing the contract, not the completed value of the property). This can reduce your stamp duty by thousands — sometimes tens of thousands on higher-value developments. Victoria and NSW have formal off-the-plan concession schemes.
3. Consider the ACT model
If you are flexible on location, the ACT's ongoing stamp duty phase-out makes Canberra increasingly attractive from a transaction cost perspective. With stamp duty rates already lower than NSW and VIC, and continuing to decrease each year, the upfront cost of buying in the ACT is measurably lower. The trade-off is higher annual rates (land tax), but for many buyers, spreading the cost over time is more manageable than a large upfront payment.
4. Negotiate the contract price carefully
Stamp duty is calculated on the purchase price (or market value, whichever is higher). If you can negotiate the price down by even $20,000–$30,000, the stamp duty saving is direct. On a property in the 4%–5% effective stamp duty range, a $30,000 price reduction also saves $1,200–$1,500 in stamp duty.
5. Check if you qualify as a first home buyer
This sounds obvious, but many buyers do not check their eligibility carefully. In some states, you may qualify as a first home buyer even if your spouse previously owned a property (depending on when and in which state). Some states have income tests while others do not. The definition of "new home" versus "established home" also varies. A 30-minute conversation with your conveyancer about eligibility can save you tens of thousands.
6. Build a new home on vacant land
When you purchase vacant land and build, you pay stamp duty only on the land value — not on the total cost including the construction. On a $700,000 house-and-land package where the land is worth $350,000 and the build costs $350,000, you pay stamp duty on $350,000 instead of $700,000. The saving can be $10,000–$15,000 or more depending on the state.
Timing matters. In a house-and-land purchase, make sure the land contract is separate from the building contract. If the contracts are combined, the revenue office may assess stamp duty on the total value. Your conveyancer can structure this correctly.
Stamp Duty vs Annual Land Tax: The Ongoing Debate
Economists have been calling for Australia to replace stamp duty with a broad-based annual land tax for decades. The Henry Tax Review (2010) described stamp duty as one of the "most inefficient taxes" levied in Australia. The Productivity Commission has repeatedly endorsed reform. And yet, with the exception of the ACT, no state has made the transition.
The arguments for replacing stamp duty with land tax are compelling:
- Efficiency: Stamp duty discourages transactions, leading to people staying in homes that no longer suit them (empty nesters in four-bedroom houses, growing families in cramped apartments). Land tax does not penalise moving.
- Fairness: Stamp duty hits buyers hardest when they can least afford it — at the point of purchase, when cash is stretched. Spreading the same revenue over annual payments is easier to budget for.
- Revenue stability: Stamp duty revenue is volatile, swinging dramatically with the property cycle. Land tax provides stable, predictable revenue regardless of market conditions.
The arguments against (or at least the reasons reform has stalled):
- Transition problem: People who have already paid stamp duty would face a new annual tax without a refund for what they already paid. This double-taxation concern is politically toxic.
- Revenue risk: During the transition period, state governments collect less stamp duty (because some buyers opt into the new system) but have not yet built up enough land tax revenue to compensate. The ACT's 20-year phase-in addresses this but requires decades of political commitment.
- Voter resistance: A visible annual tax is less popular than a one-off tax paid once and then forgotten, even if the long-term cost is similar.
For buyers in 2026, the practical reality is that stamp duty remains the default in seven out of eight jurisdictions. The ACT is the only place where the alternative is genuinely available and reducing over time. If other states follow the ACT's lead, it will likely take years or decades to implement.
Common Mistakes to Avoid
Not budgeting for stamp duty at all
This is more common than you might think, especially among first-time buyers who focus on the deposit and mortgage repayments. If you have pre-approval for $800,000 and have not set aside $25,000–$40,000 for stamp duty (depending on your state and eligibility), your actual purchasing power is significantly lower than you think. Add stamp duty to your budget before you start inspecting properties, not after you find one you love.
Assuming you qualify for a concession
First home buyer definitions vary by state. Some states require you to have never owned property anywhere in Australia; others are more lenient. Some have income thresholds; many do not. Some require you to live in the property for a minimum period (typically 6–12 months). Confirm your eligibility with the relevant state revenue office or your conveyancer before relying on a concession in your budget.
Not knowing the threshold cliffs
As noted above, buying $1,000 above a concession threshold can cost you $20,000 or more in stamp duty. This is one of the few areas where the exact purchase price matters enormously. If you are negotiating near a threshold, push hard to come in under it — the stamp duty saving alone justifies a firm negotiating position.
Forgetting stamp duty on investment properties
First home buyer concessions apply to your primary residence. If you are buying an investment property, you pay the full stamp duty rate regardless of whether you have owned property before. For investors, stamp duty is always a non-negotiable upfront cost that must be factored into yield and return calculations from day one.
Ignoring the impact on your LVR
Stamp duty cannot be added to your mortgage in most cases (some lenders allow it via capitalisation, but it increases your loan-to-value ratio and may trigger Lenders Mortgage Insurance). If you are borrowing 90% of the purchase price and then need to find $30,000 for stamp duty from your savings, you may find yourself short. Plan your deposit and stamp duty as two separate savings goals.
Key Takeaway
Stamp duty is not a flat rate and it is not consistent across Australia. The difference between states can be tens of thousands of dollars for the same property value. First home buyer concessions can eliminate stamp duty entirely — but only if you meet specific eligibility criteria and buy below your state's threshold. Foreign buyers face surcharges of 7%–9% on top of standard rates.
Before you set your property budget, before you start inspecting homes, and before you make an offer — check the stamp duty rates in your specific state. Use the calculators provided by your state revenue office (Revenue NSW, State Revenue Office Victoria, Queensland Treasury, etc.) to get an exact figure for your target price range. Then build that number into your budget alongside your deposit, conveyancing fees, and other upfront costs.
The buyers who get caught out are those who treat stamp duty as an afterthought. The buyers who save thousands are those who understand the thresholds, check their eligibility, and negotiate with stamp duty in mind from the start.
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