Key takeaways
NSW transfer duty rates are indexed annually, with updated thresholds applying from 1 July 2025.
Premium duty now applies to residential properties valued above $3.721 million in NSW.
Stamp duty costs can significantly affect upfront buying costs, so it’s important to factor them into your budget early.
Eligible first home buyers may be able to access stamp duty exemptions or concessions depending on the property and eligibility criteria.
If you’re buying property in New South Wales, one of the biggest upfront costs to plan for is stamp duty, officially known as transfer duty.
Transfer duty is a government tax charged when property ownership changes hands. In most cases, the buyer pays the duty, and the amount depends on factors including:
the property value
whether you’re eligible for concessions or exemptions
whether additional surcharges apply (for example, foreign buyer surcharges)
In NSW, transfer duty is calculated using a sliding scale, meaning higher-value properties generally attract a higher rate of duty.
Understanding how stamp duty works may help you budget more confidently before you buy.
Current NSW stamp duty rates (2025–26)
Revenue NSW updated transfer duty thresholds from 1 July 2025 as part of its annual CPI indexation process.
The current standard transfer duty rates for residential property in NSW are:
Dutiable value | Transfer duty payable |
$0 to $17,000 | $1.25 for every $100 (minimum $20) |
$17,000 to $37,000 | $212 plus $1.50 for every $100 over $17,000 |
$37,000 to $99,000 | $512 plus $1.75 for every $100 over $37,000 |
$99,000 to $372,000 | $1,597 plus $3.50 for every $100 over $99,000 |
$372,000 to $1.24 million | $11,152 plus $4.50 for every $100 over $372,000 |
More than $1.24 million | $50,212 plus $5.50 for every $100 over $1.24 million |
Source: Revenue NSW – Transfer duty rates and thresholds
Important note on premium duty
NSW also applies premium transfer duty to high-value residential properties.
From 1 July 2025 to 30 June 2026, premium duty applies to residential properties valued above $3.721 million.
The premium duty rate is:
$186,667 plus
$7.00 for every $100 over $3.721 million
Revenue NSW says both standard transfer duty thresholds and premium duty thresholds are indexed annually to CPI.
When do you pay stamp duty in NSW?
In NSW, transfer duty is generally payable within:
three months of signing the contract, or
settlement, whichever comes first
Your conveyancer or solicitor will usually help calculate and arrange payment as part of the settlement process.
If you're buying a property off-the-plan and intend to live in it, you may be eligible to defer transfer duty payment for up to 12 months. Eligibility conditions apply, including a residence requirement. Foreign purchasers are not eligible for this deferral.
How much is stamp duty in NSW?
The amount of stamp duty you pay depends on the property’s dutiable value and your eligibility for concessions.
Here’s a simplified example using the current NSW transfer duty schedule.
Property price | Estimated transfer duty* |
$650,000 | Approx. $23,662 |
$850,000 | Approx. $32,662 |
$1 million | Approx. $39,412 |
These examples are illustrative only and do not constitute financial or tax advice. Transfer duty may vary depending on the property, buyer eligibility and applicable concessions. Readers should refer to Revenue NSW for current rates and calculations.
Source: Revenue NSW - Transfer duty calculator
You can also use the Revenue NSW calculator or speak with your conveyancer for a more tailored estimate.
Are there stamp duty exemptions for first home buyers in NSW?
Eligible first home buyers in NSW may be able to access transfer duty exemptions or concessions through the First Home Buyers Assistance Scheme.
Depending on the property value and eligibility criteria, some first home buyers may:
pay no transfer duty
receive a reduced amount of duty
qualify for concessions on vacant land purchases
Separate thresholds apply for eligible first home buyers purchasing vacant land to build on, a full exemption is available up to $350,000, with concessional rates applying up to $450,000.
Eligible first home buyers purchasing or building a new home may also be able to access the First Home Owner (New Homes) Grant, a separate $10,000 payment administered by Revenue NSW. This grant is not means-tested, but value limits apply: $600,000 for a newly built home, or $750,000 for a home and land package.
Before relying on any threshold or concession amount, buyers should confirm the latest rules directly and eligibility criteria with Revenue NSW before purchasing.
What other costs should buyers plan for?
Stamp duty is only one part of the upfront costs involved in buying property.
Other costs may include:
lender fees
conveyancing or legal fees
pest and building inspections
loan establishment costs
registration fees
strata reports
moving costs
For many buyers, these expenses can add up quickly, which is why it can help to understand your borrowing power and buying costs early in the process.
An Aussie Broker can help you understand the upfront costs involved and explore home loan options that may suit your needs.
Can stamp duty be added to a home loan?
In some situations, buyers may be able to borrow enough to help cover stamp duty costs as part of their total loan amount.
Whether this is possible depends on:
the lender
your deposit size
your loan-to-value ratio (LVR)
your overall financial position
Borrowing additional funds may also increase interest costs over the life of the loan.
Does NSW still have the annual property tax option?
No. The First Home Buyer Choice scheme, which allowed eligible first home buyers to choose between upfront transfer duty and an annual property tax, closed to new applicants on 1 July 2023.
Buyers who contracted before that date and opted in continue to pay annual property tax, but the option is not available for new purchases. For up-to-date information on any future policy changes, refer directly to Revenue NSW.
How to prepare for stamp duty costs
Before buying property in NSW, it may help to:
estimate your transfer duty early
check whether you qualify for concessions
factor all upfront buying costs into your savings plan
understand how stamp duty may affect your borrowing power
speak with a broker or conveyancer before making an offer
Planning ahead can help reduce surprises during settlement and give you a clearer picture of what you may be able to afford.
Because transfer duty rates, thresholds and concession schemes can change over time, it’s important to check the latest government guidance before purchasing property.
If you’re preparing to buy a home, an Aussie Broker can help you understand your borrowing power, upfront costs, and home loan options so you can move forward with more confidence.
