What Is Stamp Duty?
Stamp duty — formally known as transfer duty or land transfer duty in most states — is a tax levied by state and territory governments on the transfer of property. It applies to all real estate transactions including residential homes, investment properties, commercial property, and vacant land. In some states it also applies to vehicles and insurance.
Stamp duty is typically the largest upfront cost of buying property beyond the purchase price itself, often totalling tens of thousands of dollars on a median-priced home. At the Australian median house price of around $750,000 (2025), a NSW buyer pays approximately $28,800 in stamp duty — equivalent to more than 12 months of a typical home loan's monthly repayments. Understanding stamp duty is essential when budgeting for a property purchase.
Stamp Duty Rates by State (Approximate — 2025)
The following is a summary of approximate stamp duty on a $500,000 residential property for an owner-occupier (non-FHB) in each state. These figures are estimates only and should be verified with the relevant state revenue office.
| State | Approx. Duty on $500,000 | FHB Concession? |
|---|---|---|
| NSW | ~$17,990 | Exempt ≤$650,000 |
| VIC | ~$21,970 | Exempt ≤$600,000 |
| QLD | ~$15,925 | Exempt ≤$500,000 |
| WA | ~$17,765 | Concessional rates apply |
| SA | ~$21,330 | Grant (not duty concession) |
| ACT | ~$9,000 | Broad duty-free threshold |
| TAS | ~$14,255 | Grant available |
| NT | ~$7,500 | Concessional for owner-occupiers |
Note: ACT has a unique duty structure that is progressively shifting toward a broader land tax model. NT uses a concessional rate for homes under $525,000. All figures are approximations — use the calculator above and verify with official sources.
Important Rate Caveats — Check Official Sources
Stamp duty rates are set by state legislation and can change with each state budget. Our calculator uses simplified approximate brackets designed for rough estimates. They may not reflect recent legislative changes, special concessions for seniors, off-the-plan duty concessions, or investment property surcharges. Before signing a contract of sale, always verify the actual duty payable using:
- NSW: Revenue NSW
- VIC: State Revenue Office Victoria
- QLD: Queensland Revenue Office
- WA: Revenue WA
- SA: Revenue SA
- ACT: ACT Revenue Office
- TAS: State Revenue Office Tasmania
- NT: Territory Revenue Office NT
First Home Buyer Concessions and Grants
Most states offer substantial stamp duty reductions or full exemptions for first home buyers purchasing below certain price thresholds. These concessions are designed to help first-time buyers offset the upfront cost of entering the property market. Key points:
- NSW: Full exemption up to $650,000; partial relief $650,001–$800,000. Must be a new or existing home; must move in within 12 months and live there for at least 6 months.
- VIC: Full exemption up to $600,000; partial reduction $600,001–$750,000. For new builds, additional off-the-plan concessions may apply.
- QLD: Full concession for homes under $500,000; partial concession $500,001–$550,000. Applies to homes and land packages.
- WA: Reduced transfer duty on a sliding scale for first home buyers on properties under specific thresholds.
- SA & TAS: First home owner grants rather than stamp duty concessions — check the relevant state for current grant amounts.
- ACT: A broad concessional duty framework applies; the ACT First Home Owner Grant scheme also provides cash assistance.
In addition to state-based concessions, the federal government offers the First Home Guarantee and Regional First Home Buyer Guarantee, which allow eligible first buyers to purchase with as little as 5% deposit without Lenders Mortgage Insurance (LMI). The First Home Super Saver Scheme (FHSSS) allows you to save a deposit inside your super fund on a concessional tax basis.
Stamp Duty and Property Investment
For investment property buyers, stamp duty is not immediately tax deductible. It is instead added to the cost base of the property, which reduces the capital gain (and therefore CGT) when the property is eventually sold. This deferred tax benefit is real but can take years to realise.
When modelling the financial case for an investment property, factor stamp duty into your upfront capital outlay. Our Negative Gearing Calculator helps you calculate the ongoing holding costs and tax benefit of an investment property, and our Capital Gains Tax Calculator helps model the eventual CGT on sale.
Note that several states have introduced additional land tax surcharges for foreign investors. If you are purchasing as a foreign person or entity, additional foreign duty surcharges of 7–8% may apply in NSW, VIC, and QLD — well above the standard rates. Always seek specific legal and tax advice if investing as a non-resident.
Budgeting for Stamp Duty
When setting a property budget, ensure you have separate savings for stamp duty in addition to your deposit, legal fees, building and pest inspection costs, and moving expenses. A rough total transaction cost budget for a $750,000 property (NSW, non-FHB) would include:
- Stamp duty: ~$28,800
- Conveyancing / legal fees: $1,500–$3,000
- Building and pest inspection: $400–$800
- Loan application / establishment fee: $0–$600
- Lenders mortgage insurance (if LVR above 80%): $5,000–$15,000
- Moving costs: $500–$3,000
Total upfront costs excluding the deposit are typically $30,000–$50,000 on a median-priced property. Having a clear picture of these costs is essential before making an offer. Use our Mortgage Repayment Calculator to model ongoing loan costs, and our Compound Interest Calculator to see how long it takes to save your deposit.