How stamp duty is calculated in Australia: a state-by-state guide

On a $750,000 home purchase in New South Wales, stamp duty adds $28,485 to your settlement bill before you've paid a single removalist or conveyancer. That figure catches a lot of buyers off guard, because stamp duty is calculated differently in every Australian state and territory, and many people don't work out the exact number until it's too late to adjust their savings plan.

This guide walks through how stamp duty is actually calculated using the NSW bracket system as a worked example, compares first home buyer concessions across all eight states and territories, and covers one critical myth that costs buyers dearly: the idea that stamp duty can be rolled into your mortgage. By the end, you'll know exactly what to budget and which concessions you may qualify for.

What is stamp duty and why does it vary by state?

Stamp duty (officially called "transfer duty" in most states) is a one-off tax charged by state and territory governments when property ownership changes hands. The buyer pays it, not the seller, and it must typically be settled within 30 to 90 days of signing contracts depending on your state.

Because each state administers its own regime, the same $750,000 property can attract vastly different duty bills depending on where it sits. Queensland's rate structure is among the most competitive nationally, while Victoria's is often the most expensive, particularly for properties above $960,000 where a flat 5.5% applies to the entire purchase price rather than just the marginal amount.

Before you make an offer on any property, run the figures through the Stamp Duty Calculator to see your exact liability by state, including first home buyer concessions and foreign investor surcharges where applicable.

TOOL: Stamp Duty Calculator

Calculate your exact transfer duty for any Australian state or territory, including first home buyer exemptions and surcharge purchaser duty.

Link: https://propmarkethub.com.au/stamp-duty-calculator

How stamp duty is calculated: the NSW bracket system explained

Stamp duty uses a tiered, progressive structure - exactly like income tax brackets. Each dollar of the property's value falls into a tier, and only that tier's rate applies to that slice. The total duty is the sum across all tiers. You are never charged the top rate on the entire purchase price.

Here is how the NSW bracket system works for a standard residential purchase in FY2025-26, using a $750,000 property as the worked example:

Value bracket

Rate

Duty on this bracket

$0 to $16,000

1.25%

$200

$16,001 to $35,000

1.5%

$285

$35,001 to $93,000

1.75%

$1,015

$93,001 to $351,000

3.5%

$9,030

$351,001 to $750,000

4.5%

$17,955

Total

Effective rate: 3.80%

$28,485

Source: Revenue NSW, FY2025-26 rates

The effective rate of 3.80% is significantly lower than the top bracket rate of 4.5%, because only the portion of the purchase price above $351,000 is taxed at 4.5%. Everything below that threshold is taxed at lower rates.

For properties above $3,721,000 in NSW (the FY2025-26 premium threshold, adjusted annually by CPI), a 7% premium rate applies to the portion above that threshold. At this level, you're looking at six-figure duty bills.

NSW imposes an 8% surcharge purchaser duty on top of standard transfer duty for foreign persons purchasing residential property. On a $750,000 purchase, a foreign buyer would pay $28,485 in standard duty plus $60,000 in surcharge duty - a combined total of $88,485.

TOOL: Stamp Duty Calculator

Instantly compare your stamp duty across all eight states side by side, and see how much the NSW foreign investor surcharge adds to your total cost.

Link: https://propmarkethub.com.au/stamp-duty-calculator

First home buyer concessions: what each state offers

First home buyer (FHB) exemptions and concessions are among the most valuable savings available when buying property in Australia. But the thresholds, taper structures, and eligibility rules differ significantly by state. Here is the current position across all eight jurisdictions:

State/Territory

FHB full exemption threshold

Taper to

Notes

NSW

$800,000

$1,000,000

New and established homes

VIC

$600,000

$750,000

New homes only; no FHB exemption on established

QLD

$700,000 (established)

N/A

Uncapped for new homes from May 2025

$500,000

$700,000 (metro)

$750,000 for regional purchases

No cap (new homes)

N/A

No exemption on established homes

TAS

$750,000

N/A

Full exemption until June 2026

ACT

Income-tested

$1,020,000 (pensioners)

Home Buyer Concession Scheme; income cap $250,000

No FHB exemption

N/A

$50,000 FHOG available instead

Source: state and territory revenue offices, FY2025-26

The differences are stark. A Queensland first home buyer purchasing a brand-new $900,000 home pays $0 stamp duty, while a Victorian first home buyer purchasing an established $750,000 home qualifies only for a partial concession. South Australia offers no concession at all on established homes, regardless of price.

To understand which concessions apply to your specific situation - including property type, price, and state - the First Home Buyer Calculator models your total upfront costs including duty, grants, and government fees in one place.

NSW: the FHB concession in detail

NSW offers a full stamp duty exemption for first home buyers purchasing new or established properties up to $800,000. Between $800,001 and $999,999, a tapered concession applies. At $800,001 you pay a small amount, and the concession phases out completely by $1,000,000. Eligible buyers must never have owned property in Australia and must live in the property for at least 12 continuous months within the first year of purchase.

Watch Out For:

The NSW $800,000 threshold is a hard cliff, not a gradual slope on the way in. A property priced at $799,000 attracts $0 stamp duty for an eligible first home buyer. A property priced at $800,001 triggers the taper - and the duty saving begins to shrink immediately. If you are close to this threshold, a small price negotiation can save you tens of thousands of dollars. Do not assume you are exempt without checking the exact purchase price against the current Revenue NSW rates.

VIC: new homes only

Victoria's FHB exemption applies only to new homes or vacant land where you build. For established properties, the standard rate applies in full from dollar one. At $600,000, a VIC first home buyer purchasing a new property pays $0. At $750,000, a sliding concession applies. At $750,001 and above, full duty is charged. Victoria has also extended an off-the-plan stamp duty concession (available to all buyers, including investors) until October 2026, which calculates duty on the land value only during construction - delivering average savings of around $24,500 (Source: Herbert Smith Freehills Kramer, June 2025).

QLD: uncapped new home exemption

Queensland removed the price cap on its FHB stamp duty exemption for new homes from 1 May 2025. This means a Queensland first home buyer purchasing a new property at any price now pays $0 stamp duty. For established homes, the exemption applies up to $700,000. Queensland also currently offers the highest First Home Owner Grant in the country at $30,000 (until June 2026).

WA: metro and regional thresholds

Western Australia provides a full stamp duty exemption for first home buyers up to $500,000 for both new and established properties. A sliding concession applies between $500,001 and $700,000 for metro purchases, and up to $750,000 for regional properties. WA's top marginal stamp duty rate of 5.15% is also among the lowest in the country for standard purchases.

The myth that stamp duty can go into your mortgage

One of the most common misconceptions among first home buyers is that stamp duty can be added to the mortgage. The thinking goes: if a lender will let you borrow 95% of the property value, surely you can just borrow a bit more to cover the duty.

Lenders do not work this way. Stamp duty must come from genuine savings held outside of your home loan. It is an upfront cost of acquisition, not part of the security property's value, and no Australian lender will allow it to be capitalised into the principal.

This matters enormously when you're calculating how much cash you actually need on settlement day. For a $750,000 purchase in NSW at a 10% deposit:

Cost item

Approximate amount

Deposit (10%)

$75,000

Stamp duty (NSW standard)

$28,485

Conveyancing and legal fees

$1,500 to $2,500

Building and pest inspection

$500 to $800

Loan application and registration fees

$500 to $1,000

Lenders Mortgage Insurance (if >80% LVR)

Varies significantly

Minimum total cash required

~$107,000 to $110,000

That is a minimum of $107,000 to $110,000 in verified savings for a 10% deposit purchase in NSW, before a dollar of the property price is borrowed. Many buyers discover this too late and are forced to delay settlement or renegotiate.

Use the Property Purchase Costs Calculator to model the full cost of purchase by state, including duty, inspection costs, legal fees, and loan establishment fees, so your savings target is accurate from day one.

TOOL: Property Purchase Costs Calculator

See your total out-of-pocket cost to purchase including stamp duty, conveyancing, inspection fees, and LMI for your specific state and purchase price.

Link: https://propmarkethub.com.au/property-purchase-costs-calculator

The ACT model: a different approach other states are watching

While every other state and territory still charges stamp duty as an upfront lump sum, the Australian Capital Territory has been gradually replacing it with an annual land-based charge since 2012. The ACT's 20-year tax reform program, expected to run until around 2032, progressively reduces conveyance duty rates each budget cycle while increasing general rates (a form of land value tax) applied to all properties (Source: ACT Revenue Office, September 2025).

The rationale, supported by analysis from the Victoria University Centre of Policy Studies in 2025, is that stamp duty is economically inefficient - it discourages people from moving to homes better suited to their needs. Research found that each 10% reduction in stamp duty rates drove a 6% rise in property transactions.

The ACT also takes a different approach to foreign buyers. Rather than imposing an upfront surcharge at purchase, the ACT levies an ongoing Foreign Ownership Land Tax Surcharge of 0.75% per year on the property's unimproved value - applied annually for as long as the foreign ownership continues.

Victoria's Infrastructure Victoria has openly discussed a similar transition, and the Productivity Commission has recommended all state governments move toward broad-based land tax and away from stamp duty. No other state has committed to a transition timeline, but the policy debate has intensified as housing affordability has worsened across the country.

How to calculate your total purchase costs before you buy

Knowing the stamp duty rate is one thing. Knowing your total cash requirement on settlement day is another. Here is a practical step-by-step approach:

1. Enter your target purchase price and state into the Stamp Duty Calculator and confirm whether FHB concessions apply to you.

2. Add your conveyancing estimate (typically $1,200 to $2,500 for a standard residential purchase).

3. Add building and pest inspection costs (typically $400 to $900 depending on property size).

4. Check whether your deposit will trigger LMI (Lenders Mortgage Insurance applies when you borrow more than 80% of the property value). LMI can be capitalised into the loan in most cases, but the premium itself is significant.

5. Run the full picture through the Property Purchase Costs Calculator to see the combined cash requirement and ensure your savings are sufficient before you exchange contracts.

Getting this number right before you bid at auction or sign a contract is non-negotiable. Stamp duty is not negotiable, not deferrable in most states, and not something a lender can solve for you.

The Bottom Line:

Stamp duty is calculated on a progressive bracket system, not as a flat percentage of the whole purchase price. On a $750,000 NSW property, the effective rate is 3.80%, not 4.5%. The most important things to check before you buy are: which state's rates apply, whether you qualify for first home buyer exemptions, and whether you have sufficient genuine savings to cover duty on top of your deposit. No Australian lender will allow stamp duty to be added to your mortgage.

Whether you're buying your first home or adding to an investment portfolio, the Stamp Duty Calculator gives you an instant, state-specific estimate so there are no surprises on settlement day. For a full picture of every upfront cost including stamp duty, legal fees, and inspection costs, the Property Purchase Costs Calculator keeps all the numbers in one place. This article is for informational purposes only and does not constitute financial advice.