Stamp duty (officially called 'transfer duty' in most states) is a state or territory government tax charged when you purchase property. It is typically the largest upfront cost after the deposit — ranging from a few thousand dollars for lower-value properties to $40,000–$60,000+ for properties in the $1 million+ range. Every state and territory sets its own rates, exemptions, and concessions, making it essential to understand the rules in your specific state. First home buyers receive significant concessions in most jurisdictions, and foreign purchasers face additional surcharges.
Stamp Duty in NSW and Victoria
New South Wales (NSW):
NSW uses a tiered rate structure. As of 2026, approximate stamp duty on a $800,000 property for a non-first-home buyer is approximately $31,000. On a $1,000,000 property, approximately $40,000.
First home buyer concessions in NSW: Properties up to $800,000 — full exemption (no stamp duty payable). Properties $800,001–$1,000,000 — concessional (reduced) rate applies. Properties above $1,000,000 — full stamp duty applies. These thresholds apply to both new and established homes for eligible first home buyers.
NSW also offers a choice: first home buyers can opt to pay a smaller annual property tax instead of upfront stamp duty under the First Home Buyer Choice scheme. The annual tax is $400 plus 0.3% of the land value — potentially saving tens of thousands in upfront costs, though it becomes an ongoing annual expense.
Foreign buyer surcharge in NSW: An additional 8% surcharge applies to foreign purchasers (non-Australian citizens or permanent residents), payable on top of the standard stamp duty.
Victoria (VIC):
Victoria has some of the highest stamp duty rates in Australia. On a $800,000 property, a non-first-home buyer pays approximately $44,000. On a $1,000,000 property, approximately $55,000.
First home buyer concessions in VIC: Properties up to $600,000 — full exemption. Properties $600,001–$750,000 — concessional rate (sliding scale). Properties above $750,000 — full stamp duty applies. Note: These thresholds are significantly lower than NSW, meaning many first home buyers in Melbourne still pay substantial stamp duty.
VIC off-the-plan concessions: If you purchase an off-the-plan apartment or townhouse, stamp duty is calculated on the land value only (not the land plus building), significantly reducing the amount payable.
Foreign buyer surcharge in VIC: An additional 8% surcharge applies to foreign purchasers.
NSW First Home Buyer Choice: Annual Tax vs Upfront Stamp Duty
NSW first home buyers purchasing properties up to $1.5 million can choose to pay an annual property tax instead of upfront stamp duty. For a property with $500,000 land value, the annual tax would be approximately $1,900/year instead of a one-off stamp duty of $25,000+. The annual tax applies for as long as you own the property. Over 13+ years, the annual tax exceeds the stamp duty — so this option benefits buyers who plan to sell or refinance within 10–12 years.
| State | Property Value | Stamp Duty (Non-FHB) | First Home Buyer |
|---|---|---|---|
| NSW | $600,000 | ~$22,000 | Exempt (under $800K) |
| NSW | $800,000 | ~$31,000 | Exempt (at $800K) |
| NSW | $1,000,000 | ~$40,000 | Full duty (over $1M) |
| VIC | $600,000 | ~$31,000 | Exempt (under $600K) |
| VIC | $800,000 | ~$44,000 | Full duty (over $750K) |
| VIC | $1,000,000 | ~$55,000 | Full duty (over $750K) |
Stamp Duty in Queensland and Western Australia
Queensland (QLD):
Queensland has relatively moderate stamp duty rates compared to NSW and VIC. On a $600,000 property, a non-first-home buyer pays approximately $11,000. On an $800,000 property, approximately $20,000.
First home buyer concessions in QLD: Properties up to $500,000 — full exemption. Properties $500,001–$550,000 — concessional rate (sliding scale discount). Properties above $550,000 — full stamp duty applies. Queensland also offers the most generous First Home Owner Grant in Australia — $30,000 for new homes valued up to $750,000.
QLD home concession rate: All owner-occupiers (not just first home buyers) receive a concessional stamp duty rate for their principal place of residence. This 'home concession' rate is lower than the standard investor rate and applies automatically when you declare the property as your home.
Foreign buyer surcharge in QLD: An additional 8% surcharge applies to foreign purchasers.
Western Australia (WA):
WA has moderate stamp duty rates. On a $600,000 property, approximately $18,000. On an $800,000 property, approximately $31,000.
First home buyer concessions in WA: Properties up to $430,000 — full exemption. Properties $430,001–$530,000 — concessional rate. For vacant land: up to $300,000 exempt, $300,001–$400,000 concessional. WA also offers a $10,000 FHOG for new homes up to $750,000.
WA pre-owned (established) homes: Unlike most states, WA first home buyer concessions apply to established homes as well as new builds — though the thresholds are lower than for new homes in some cases.
Foreign buyer surcharge in WA: An additional 7% surcharge applies to foreign purchasers.
| State | Property Value | Stamp Duty (Non-FHB) | First Home Buyer |
|---|---|---|---|
| QLD | $500,000 | ~$8,750 | Exempt (under $500K) |
| QLD | $600,000 | ~$11,000 | Full duty (over $550K) |
| QLD | $800,000 | ~$20,000 | Full duty (over $550K) |
| WA | $430,000 | ~$13,000 | Exempt (under $430K) |
| WA | $600,000 | ~$18,000 | Full duty (over $530K) |
| WA | $800,000 | ~$31,000 | Full duty (over $530K) |
Stamp Duty in South Australia, Tasmania, ACT, and Northern Territory
South Australia (SA):
SA stamp duty on a $600,000 property is approximately $24,000. On an $800,000 property, approximately $36,000 — placing SA in the higher range nationally.
First home buyer concessions in SA: No stamp duty exemption or concession is available for established homes. However, new homes built or purchased off-the-plan are exempt from stamp duty up to $650,000 for eligible first home buyers. SA offers a $15,000 FHOG for new homes up to $650,000.
Tasmania (TAS):
Tasmania has moderate stamp duty rates. On a $500,000 property, approximately $18,000. On a $600,000 property, approximately $22,000.
First home buyer concessions in TAS: A 50% discount on stamp duty applies for first home buyers purchasing an established home (up to a $750,000 property value). Full exemption applies for new homes up to $600,000. Tasmania also offers a $30,000 FHOG for new homes under $600,000.
Australian Capital Territory (ACT):
The ACT is progressively abolishing stamp duty and replacing it with an annual land tax (rates increase). The current stamp duty on a $600,000 property is approximately $14,000 — among the lowest in Australia. On an $800,000 property, approximately $25,000.
First home buyer concessions in ACT: Full exemption for properties up to $1,000,000 for eligible first home buyers — the most generous threshold in Australia. Income limits apply: household income must be below $160,000. The ACT also offers a HomeBuilder-style grant of $7,000 for new homes.
Northern Territory (NT):
NT stamp duty on a $500,000 property is approximately $23,000. First home buyers receive a stamp duty concession reducing the payable amount, and the NT offers a $10,000 FHOG for all property types (new and established).
Foreign buyer surcharges: SA, TAS, ACT, and NT all have varying surcharge arrangements for foreign buyers — typically 7–8%. The ACT notably charges a 0.75% ongoing foreign ownership surcharge on the property's average unimproved value.
General advice: Stamp duty is calculated on the higher of the purchase price or the market value (as assessed by the state revenue office). If you purchase a property below market value (e.g., from a family member), you may still pay stamp duty on the assessed market value.
ACT Has the Most Generous First Home Buyer Threshold
The ACT offers stamp duty exemptions for first home buyers on properties up to $1,000,000 — significantly higher than any other state. If you are purchasing in Canberra, this exemption can save $30,000–$40,000 compared to full stamp duty. Income limits apply ($160,000 household income cap), so check eligibility with your conveyancer.
- ✓SA: No FHB stamp duty concession on established homes; exemption on new homes up to $650K
- ✓TAS: 50% FHB discount on established homes; full exemption on new homes up to $600K
- ✓ACT: Full FHB exemption up to $1,000,000 (income limits apply)
- ✓NT: FHB stamp duty concession available; $10,000 FHOG for all property types
- ✓All states charge 7–8% foreign buyer surcharges
- ✓Stamp duty is calculated on the higher of purchase price or market value
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About the Author
Sakib Manzoor
Senior Finance Wellness Expert
Sakib Manzoor is the founder of Secure Finance and brings extensive experience in Australian mortgage broking and financial wellness. Specialising in helping clients achieve their property finance goals through personalised strategies and expert guidance, Sakib is FBAA accredited and committed to providing clear, actionable advice. All content is written to meet Australian regulatory standards and is regularly updated to reflect current market conditions.