Stamp duty — now officially called transfer duty in NSW — is a government tax payable when you purchase property. For many buyers, it represents one of the largest upfront costs of a property transaction, yet it is often misunderstood. Here is everything you need to know.
What Is Transfer Duty (Stamp Duty)?
Transfer duty is a NSW state government tax charged on the transfer of property. It is payable by the purchaser (buyer) and is calculated as a percentage of the purchase price or the property's market value — whichever is higher. The duty must be paid before settlement can be completed.
How Is It Calculated?
Transfer duty in NSW is calculated on a sliding scale — the higher the purchase price, the higher the rate applied. As a rough guide for 2026:
- Up to $17,000: $1.25 per $100 (or part thereof)
- $17,001 – $36,000: $212 plus $1.50 per $100 over $17,000
- $36,001 – $97,000: $497 plus $1.75 per $100 over $36,000
- $97,001 – $364,000: $1,564 plus $3.50 per $100 over $97,000
- $364,001 – $1,212,000: $10,909 plus $4.50 per $100 over $364,000
- Over $1,212,000: $49,069 plus $5.50 per $100 over $1,212,000
As an example, on a $900,000 purchase, transfer duty would be approximately $35,500. On a $1,500,000 purchase, it would be approximately $66,700. These figures illustrate why duty is such a significant upfront cost.
When Is It Payable?
Transfer duty must be paid within 3 months of the contract being signed (for off-the-plan purchases, within 3 months of the contract becoming unconditional or on settlement, whichever is earlier). In practice, your solicitor or conveyancer arranges the payment of duty as part of the settlement process.
Who Is Exempt or Eligible for Concessions?
Several categories of buyers may be eligible for exemptions or concessions:
- First home buyers: No duty on homes up to $800,000; reduced duty on homes between $800,000 and $1,000,000 (where the property will be the principal place of residence).
- New homes: Certain concessions apply to purchases of new homes.
- Principal place of residence: Some concessions are only available where the buyer intends to live in the property.
- Property Tax option: First home buyers purchasing up to $1,500,000 may elect to pay an annual property tax instead of upfront duty.
- Family farm transfers: Certain transfers of primary production land within families may be exempt.
- Deceased estates: Transfers of property pursuant to a Will or intestacy are generally exempt.
Foreign Purchaser Additional Duty
Foreign purchasers of NSW residential property are subject to an additional surcharge of 8% on top of standard transfer duty. This applies to foreign individuals, corporations, and trusts. If you are unsure of your status, seek legal advice before exchanging contracts.
Duty on Investment Properties
Investment property buyers do not receive the same concessions as owner-occupiers. Standard transfer duty rates apply in full. However, transfer duty is a capital cost for tax purposes and may reduce capital gains tax when you eventually sell — speak to your accountant about this.
How Your Solicitor Helps
Your solicitor or conveyancer calculates the duty payable on your transaction, applies for any available exemptions or concessions, and arranges payment to Revenue NSW as part of the settlement process. At James Papas Solicitors, we handle all of this on your behalf. Your first consultation is free. Call us on (02) 9633 3122 or contact us online for a conveyancing quote.
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