Stamp Duty Calculator NSW: Complete 2025 Guide to Transfer Duty

Purchasing property in New South Wales typically involves stamp duty—officially known as transfer duty—which may represent one of the largest upfront costs buyers face. A $900,000 home in Sydney could attract approximately $35,000 in stamp duty, while a $1.5 million property might incur around $64,500. For property developers and investors, understanding these costs is generally considered essential for accurate feasibility modelling and project budgeting.

This comprehensive guide covers current NSW stamp duty rates for 2025-26, first home buyer exemptions and concessions, the 9% foreign purchaser surcharge effective from January 2025, premium property duty thresholds, and off-the-plan deferral options. Whether you’re purchasing your first home, investing in residential property, or developing a new project, this guide aims to provide the calculator-ready information you may need.

Current NSW Stamp Duty Rates (2025-26)

NSW transfer duty operates on a progressive marginal rate system under Section 32 of the Duties Act 1997. Duty is calculated on the property’s sale price or current market value, whichever is higher.

Standard Transfer Duty Rate Table

The following rates apply to all property purchases in NSW, regardless of whether you’re an owner-occupier or investor:

Unlike some other states, NSW does not differentiate between owner-occupier and investor purchases for standard transfer duty—the same rates typically apply regardless of intended use. Duty is calculated on each $100 (or part thereof), rounded up.

How to Calculate Your Stamp Duty

Understanding how to manually calculate stamp duty may help you verify quotes and plan your budget more accurately.

Example 1: $650,000 property

1. First $372,000 attracts base duty of $11,152
2. Remaining $278,000 ($650,000 - $372,000) charged at $4.50 per $100
3. Marginal duty: $278,000 ÷ 100 × $4.50 = $12,510
4. Total duty: $11,152 + $12,510 = $23,662

Example 2: $900,000 property

1. First $372,000 attracts base duty of $11,152
2. Remaining $528,000 ($900,000 - $372,000) is charged at $4.50 per $100
3. Marginal duty: $528,000 ÷ 100 × $4.50 = $23,760
4. Total duty: $11,152 + $23,760 = $34,912

Example 3: $1,500,000 property

1. First $1,240,000 attracts base duty of $50,212
2. Remaining $260,000 ($1,500,000 - $1,240,000) charged at $5.50 per $100
3. Marginal duty: $260,000 ÷ 100 × $5.50 = $14,300
4. Total duty: $50,212 + $14,300 = $64,512

Quick Reference: Stamp Duty at Common Price Points

Note: First home buyer duty assumes full eligibility for FHBAS. Actual amounts may vary based on individual circumstances.

For quick estimates, Revenue NSW provides an online calculator that may help verify your calculations.

Premium Property Duty for High-Value Purchases

Properties exceeding the premium threshold attract a higher 7% marginal rate on the portion above the threshold. This applies only to residential properties under Section 32A of the Duties Act 1997.

Premium Thresholds by Financial Year

The premium threshold is adjusted annually in accordance with the Sydney Consumer Price Index (CPI).

Premium Duty Worked Example

For a $5,000,000 residential property purchased in 2025-26:

1. Standard duty on first $3,721,000 = $186,667
2. Premium duty: ($5,000,000 – $3,721,000) × 7% = $89,530
3. Total duty: $186,667 + $89,530 = $276,197

Apportionment Rules for Mixed-Use Properties

Special rules may apply to properties that are partially used for business or exceed 2 hectares:

• Mixed-use properties: Premium duty typically applies only to the residential component. If a property has a 40% residential component, premium duty is calculated only on that portion.
• Large residential properties: For land exceeding 2 hectares, premium duty is generally calculated on the proportion that 2 hectares bears to the total area.

Property developers modelling high-value residential projects may need to factor these premium rates into feasibility calculations. Feasly’s feasibility software allows you to model different acquisition scenarios and their impact on project returns.

Commercial & Industrial Property

Commercial and industrial property in NSW is subject to standard transfer duty under the same progressive rate scale as other property.

However, several residential-specific rules do not apply to commercial property:

• Premium property duty (7%) does not apply to commercial or industrial land.
• Foreign purchaser surcharge does not apply unless the property is classified as residential.
• First home buyer concessions are not available.
• Off-the-plan deferrals do not apply.

Duty is assessed on the higher of the purchase price or market value, and payment timing follows standard NSW rules (within 3 months of contract or at settlement if earlier).

For mixed-use developments, duty and any premium rate exposure must be apportioned between residential and non-residential components.

First Home Buyer Exemptions and Concessions

The First Home Buyers Assistance Scheme (FHBAS) provides full exemptions and concessional rates for eligible purchasers. These thresholds were increased on 1 July 2023.

Current Thresholds (from 1 July 2023)

How the Concession Works

The concession operates on a sliding scale. For properties valued between $800,001 and $999,999, the duty concession decreases as the purchase price increases:

Revenue NSW provides a dedicated FHBAS calculator to determine your exact concession amount.

Eligibility Requirements

To qualify for the First Home Buyers Assistance Scheme, you generally must meet the following criteria:

• Age: At least 18 years old
• Citizenship: At least one buyer must be an Australian citizen or permanent resident
• Prior ownership: Neither you nor your spouse/partner can have previously owned residential property in Australia (wholly or partially)
• Prior benefits: You cannot have previously received a FHBAS exemption or concession
• Residence requirement: You must occupy the property as your principal place of residence for 12 continuous months, commencing within 12 months of settlement or completion

The residence requirement was increased from 6 months to 12 months on 1 July 2023. Permanent Australian Defence Force members enrolled on the NSW electoral roll are generally exempt from residence requirements.

Important: The Spouse/Partner Rule

FHBAS eligibility typically depends on the property history of both you and your spouse or de facto partner. If your partner has ever owned or co-owned residential property anywhere in Australia, you may be ineligible—even if they are not on the title of the home you are buying. This rule is commonly overlooked by first home buyers.

Buying with a Non-First Home Buyer

If you’re a first home buyer purchasing with someone who has previously owned property (such as a parent or partner who doesn’t qualify), you may still receive a partial benefit. The concession or exemption typically applies only to your share of the property.

Example: You qualify as a first home buyer and purchase a $700,000 property 50/50 with your partner who previously owned property:

• Your share (50%): Exempt from duty ($0)
• Partner’s share (50%): Standard duty on $350,000 (~$11,750)
• Total duty: approximately $11,750

This is still a significant saving compared to full duty of approximately $26,987.

Vacant Land Concessions

First home buyers purchasing vacant land to build a home may be eligible for:

To qualify, you must build a home on the land and occupy it as your principal place of residence within the required timeframes.

First Home Owner (New Homes) Grant

A separate $10,000 one-off payment may be available for newly built homes where no one has previously lived:

This grant can generally be claimed in addition to stamp duty concessions and is not means-tested. For more details, see the First Home Owner Grant information on the Revenue NSW website.

Foreign Purchaser Surcharge (9% from January 2025)

The Surcharge Purchaser Duty (SPD) applies to foreign persons purchasing residential property in NSW. This surcharge was increased in the 2024-25 State Budget.

Surcharge Rate History

NSW now has Australia’s highest foreign purchaser surcharge—compared to Victoria (8%), Queensland (8%), and South Australia (7%). The surcharge is calculated on the dutiable value and paid in addition to standard transfer duty.

Impact on Foreign Buyers

For a $2,000,000 residential property purchased by a foreign person from January 2025:

This represents approximately 13.6% of the purchase price in duty alone.

Who is Considered a “Foreign Person”?

Under Chapter 2A of the Duties Act 1997, a foreign person generally includes:

Individuals who are:

• Not an Australian citizen, AND
• Not “ordinarily resident” in Australia (requires 200+ days in Australia in the prior 12 months with no visa time limitations)

Corporations where:

• Foreign persons hold 20% or more substantial interest, OR
• Two or more foreign persons hold 40% or more aggregate interest

Trusts where:

• The trustee is a foreign person, OR
• Any beneficiary (including potential beneficiaries) is a foreign person

Discretionary trusts where even one potential beneficiary could be a foreign person are typically treated as foreign trusts—this is a common trap for family trusts used in property investment.

Exemptions from Surcharge

You may not be considered a foreign person if you are:

• An Australian citizen (including dual citizens)
• A permanent resident who is “ordinarily resident” (200+ days/year, no visa time limit)
• A New Zealand citizen with Special Category Visa (subclass 444) plus 200 days residency
• A partner visa holder (subclass 309 or 820) meeting residence requirements
• A retirement visa holder (subclass 405 or 410) meeting requirements

Important change: International tax treaty exemptions for citizens of New Zealand, Finland, Germany, India, Japan, Switzerland, Norway, and South Africa were removed on 8 April 2024 due to federal legislative changes.

Common Visa Types and Surcharge Status

Understanding how different visa types affect surcharge liability may help with planning:

If you’re on a temporary visa and planning to purchase property, it may be worth considering timing your purchase to coincide with obtaining permanent residency if that’s imminent.

Shared Ownership with Different Residency Status

If you’re purchasing with a partner who has a different residency status, each buyer’s share may be assessed separately. For example, if one buyer is an Australian citizen and the other is a temporary visa holder, the foreign surcharge would typically apply only to the foreign person’s share of the property.

Off-the-Plan Concessions and Deferrals

The off-the-plan concession allows deferral (not reduction) of transfer duty for owner-occupiers purchasing residential property before construction completion.

Deferral Period

Duty may be deferred until the earlier of:

• 15 months after signing the contract, OR
• Completion/handover of the property

Eligibility Requirements

To qualify for the off-the-plan deferral:

• Property must be residential with dwelling to be erected before completion
• No purchaser can be a foreign person
• All purchasers must be Australian citizens or permanent residents (200+ days in prior 12 months)
• Property must be used as principal place of residence
• Must occupy for 12 continuous months, commencing within 12 months of completion
• Not available for vacant land or investment properties

The vendor typically outlines the percentage of construction completed at the sale date on the Digital Duties Form, and purchasers complete the Purchaser/Transferee Declaration (ODA 76I).

Payment Process and Deadlines

Payment Deadlines

Settlement cannot proceed if transfer duty has not been paid. This means if settlement is scheduled before the 3-month deadline, duty must typically be paid at or before settlement.

How Stamp Duty is Paid

Transfer duty is typically paid through your solicitor or conveyancer via the Electronic Lodgement Network (ELN), which handles approximately 98% of mainstream property transfers. The process generally involves:

1. Your solicitor/conveyancer assesses duty through the Electronic Duties Return (EDR) system
2. They generate a Duties Notice of Assessment with a unique DAN
3. Duties Verification is conducted through ELNO before settlement
4. Duty is paid electronically at settlement

Payment methods include BPAY, electronic funds transfer, and direct deposit. Allow 2 business days for processing if paying before settlement day.

Late Payment Consequences

Failing to pay stamp duty within the required timeframe may result in:

• Interest charges on the outstanding amount
• Potential penalty tax
• Delayed settlement or title registration

First Home Buyer Choice Scheme (Abolished)

The First Home Buyer Choice scheme, which operated from 16 January 2023 to 30 June 2023, allowed eligible first home buyers to choose between traditional stamp duty or annual property tax ($400 + 0.3% of land value for owner-occupiers).

Key points about this now-closed scheme:

• Scheme closed when the NSW Labor government took power in 2023
• Existing participants are grandfathered—they continue paying annual property tax for as long as they own the property
• If purchasing from someone who opted into property tax, that obligation transfers to the new owner
• No replacement scheme has been announced

This is important for buyers conducting due diligence—check whether your prospective property has an existing property tax obligation before purchasing.

Recent and Upcoming Changes

Changes Effective from 1 January 2025

• Foreign purchaser surcharge increased: 8% → 9%
• Surcharge land tax increased: 4% → 5%

Changes Effective from 1 February 2024

• Landholder duty threshold reduced: 50% → 20%
• Corporate reconstruction concession reduced: 100% → 90%
• Nominal duty amounts increased: $10 → $20 (contracts); $500 → $750 (trust deeds)

Confirmed for 2025-26

• Premium property threshold adjusted to $3,721,000 (from 1 July 2025)
• Land tax threshold remains frozen at $1,075,000 (review required by June 2027)
• Build-to-rent concessions made permanent (previously expiring December 2039)

Stamp Duty Comparison: NSW vs Other States

For developers and investors operating across multiple states, understanding how NSW compares may be helpful:

NSW has the highest foreign surcharge rate and competitive first home buyer thresholds, but premium property duty means luxury purchases can attract duty rates exceeding 7%.

Frequently Asked Questions

How much is stamp duty on a $800,000 house in NSW?

For a first home buyer purchasing a property at exactly $800,000, stamp duty would typically be $0 under the First Home Buyers Assistance Scheme (full exemption). For non-first home buyers, stamp duty on $800,000 would be approximately $30,412.

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

For a $1,000,000 property, stamp duty would be approximately $39,412 for all buyers. First home buyer concessions do not apply at this price point—the concession threshold caps out at $999,999.

Can I add stamp duty to my mortgage?

Generally, no. Most lenders do not allow stamp duty to be added to your home loan. You typically need to pay stamp duty from your own savings or from the proceeds of a sale if you’re purchasing a new home after selling. Some lenders may offer limited stamp duty capitalisation in specific circumstances—speak with your mortgage broker.

When do I pay stamp duty in NSW?

Stamp duty must typically be paid within 3 months of signing the contract for sale. However, if settlement occurs before this deadline, duty must be paid at or before settlement. For off-the-plan purchases where you intend to live in the property, you may be able to defer payment for up to 15 months.

Is stamp duty tax deductible?

For investment properties, stamp duty generally cannot be claimed as an immediate tax deduction. Instead, it’s typically added to the cost base of the property and may reduce capital gains tax when you eventually sell. For properties held for rental income, the stamp duty forms part of your acquisition costs. Consult with a tax professional for advice specific to your circumstances.

What’s the stamp duty on a $1.5 million property in NSW?

For a $1,500,000 property purchased by a non-first home buyer Australian resident, stamp duty would be approximately:

• $50,212 (base duty on $1,240,000) + ($260,000 × 5.5%) = $64,512

For a foreign purchaser, add the 9% surcharge ($135,000) for a total of approximately $199,512.

What’s the stamp duty on a $2 million property in NSW?

For a $2,000,000 property purchased by an Australian resident (non-first home buyer):

• $50,212 (base duty on $1,240,000) + ($760,000 × 5.5%) = $92,012

For a foreign purchaser, add the 9% surcharge ($180,000) for a total of approximately $272,012.

What’s the stamp duty on a $4 million property in NSW?

A $4,000,000 property exceeds the premium property threshold ($3,721,000 for 2025-26), so premium duty applies:

• Standard duty on $3,721,000 = $186,667
• Premium duty on $279,000 ($4M - $3,721,000) at 7% = $19,530
• Total for Australian resident: $206,197

For a foreign purchaser, add the 9% surcharge ($360,000) for approximately $566,197 in total duty.

Do pensioners get a stamp duty concession in NSW?

Yes, eligible pensioners and concession cardholders may pay a reduced transfer duty when purchasing a home. The Pensioner Duty Concession Scheme provides relief for eligible applicants. Contact Revenue NSW or your conveyancer to determine your eligibility.

What if I’m buying with my partner who’s on a temporary visa?

If one buyer is an Australian citizen/permanent resident and the other is on a temporary visa (and therefore a “foreign person”), the foreign surcharge would typically apply only to the foreign person’s share. For example, if buying 50/50, the surcharge would apply to half the property value.

Worked example: A couple buying a $1,000,000 property 50/50, where one is Australian and one is on a temporary visa:

• Standard duty (both shares): $39,412
• Foreign surcharge (50% share): $1,000,000 × 50% × 9% = $45,000
• Total duty: $84,412

Structuring ownership carefully with legal advice may help minimise surcharge exposure.

I previously owned property overseas—am I still a first home buyer in NSW?

No. Under the First Home Buyers Assistance Scheme, you must never have owned or co-owned residential property anywhere in the world—not just Australia. If you’ve previously owned property in another country, you typically won’t qualify for first home buyer exemptions or concessions in NSW.

Can I get stamp duty refunded if the sale falls through?

In some circumstances, you may be entitled to a refund or reassessment of stamp duty if:

• The contract is rescinded (cancelled by mutual agreement)
• The contract is annulled, voided, or terminated
• The transfer doesn’t proceed

You typically need to apply to Revenue NSW within specific timeframes. If settlement has already occurred, refunds are generally not available.

Is stamp duty payable on inherited property?

Generally, no transfer duty is payable on property transferred from a deceased estate to a beneficiary under a will or the rules of intestacy. A nominal duty of $50 may apply. However, if you subsequently transfer the property to another party, normal stamp duty rules typically apply.

How does stamp duty work for company purchases?

When a company purchases property, standard stamp duty rates apply to the property transfer. However, there are additional considerations:

• Landholder duty may apply when acquiring shares or units in a company/trust that holds land worth $2 million or more
• Foreign surcharge applies if the company is considered a “foreign person” (20%+ foreign ownership, or 40%+ aggregate foreign ownership)
• Corporate structures don’t provide stamp duty advantages and may attract additional compliance requirements

Can I claim stamp duty back on my tax return?

For investment properties, stamp duty is not immediately deductible. It forms part of the cost base of the property, which may reduce your capital gains tax liability when you sell. For your principal place of residence, stamp duty is generally not tax deductible at all. Consult a tax professional for advice specific to your situation.

What happens if I miss the stamp duty deadline?

If stamp duty isn’t paid within 3 months (or by settlement, if earlier), you may face:

• Interest charges: Applied from the due date until payment
• Penalty tax: May be applied for late lodgement or payment
• Settlement delays: Your settlement may not be able to proceed until duty is paid

Your conveyancer typically manages these deadlines, but it’s worth confirming payment timing well before settlement.

Developer Considerations

For property developers, stamp duty represents a significant project cost that must be accurately factored into feasibility analysis. Getting these calculations wrong can materially impact project returns.

Acquisition Costs

When modelling site acquisition:

Site purchases:

• Standard duty on land purchases follows the same rate table as residential property
• Premium duty applies to residential land above $3,721,000 (2025-26)
• For development sites with multiple lots, duty may be assessed on each lot or as an aggregate—seek legal advice on structuring

Corporate structures:

• Purchasing through a company or trust doesn’t reduce stamp duty on property transfers
• Landholder duty provisions may apply when acquiring shares/units in entities holding $2M+ in NSW land
• The 20% threshold for private unit trusts means smaller acquisitions can still trigger duty

Foreign investor structures:

• Foreign investors purchasing through Australian companies may still attract surcharges if the company is “foreign-controlled”
• Joint ventures with foreign capital partners require careful structuring
• Build-to-rent concessions may provide relief for qualifying projects

Buyer Capacity Impact

Stamp duty directly affects your end buyers’ purchasing capacity, which influences project pricing and sales velocity:

First home buyer market (sub-$800,000):

• Buyers have no duty burden under FHBAS
• This price bracket typically sees strongest demand
• Marketing can emphasise $0 stamp duty as a selling point

First home buyer concession zone ($800,001-$999,999):

• Partial concessions apply, but buyers still need to budget for reduced duty
• Consider pricing strategies just above or below key thresholds
• A $799,000 price point delivers full exemption vs $801,000 incurring duty

Above concession threshold ($1,000,000+):

• Full duty applies—approximately 4-5% of purchase price
• Buyers need an additional ~$40,000+ on top of deposit
• Factor this into target buyer affordability modelling

Off-the-Plan Sales

If selling off-the-plan to owner-occupiers, the duty deferral option may improve buyer affordability:

Benefits to highlight in marketing:

• Buyers can defer duty for up to 15 months
• Cash flow benefit at exchange—buyers don’t need duty funds immediately
• May allow buyers to continue saving between exchange and settlement

Important limitations:

• Deferral only available for owner-occupiers, not investors
• Foreign purchasers cannot access the deferral
• Property must be principal place of residence

Development Feasibility Modelling

When building your development feasibility model, stamp duty affects multiple line items:

Feasly’s feasibility software enables developers to model stamp duty impacts on both acquisition costs and end-buyer affordability, helping optimise project pricing and target market positioning.

Worked Example: Development Site Acquisition

A developer is acquiring a $5,000,000 development site in Sydney:

1. Standard duty on $1,240,000: $50,212
2. Duty on $2,481,000 ($3,721,000 - $1,240,000) at 5.5%: $136,455
3. Premium duty on $1,279,000 ($5,000,000 - $3,721,000) at 7%: $89,530
4. Total acquisition duty: $276,197

This represents approximately 5.5% of the land cost—a material input to the feasibility model.

Official Resources

Summary

NSW stamp duty represents a significant consideration for any property purchase. Key points to remember:

• Standard rates range from 1.25% to 5.5%, with a 7% premium rate for properties above $3,721,000 (2025-26)
• First home buyers may be exempt on purchases up to $800,000, with concessions available up to $999,999
• Foreign purchasers pay an additional 9% surcharge (from January 2025)—Australia’s highest
• Off-the-plan buyers who will owner-occupy may defer duty for up to 15 months
• Payment is typically due within 3 months of signing contracts, or at settlement if earlier

For accurate calculations specific to your circumstances, use the official Revenue NSW calculators and consult with your solicitor or conveyancer. Rates and thresholds may change—always verify current information before making purchasing decisions.

This guide is for informational purposes only and does not constitute legal, financial, or tax advice. Individual circumstances vary, and you should seek professional advice before making property purchase decisions.