Stamp Duty NSW · Free Guide · Updated April 2026

Stamp Duty in NSW — What You’ll Actually Pay

First home buyers in NSW pay zero stamp duty up to $800,000. Above that a tapered concession runs to $1,000,000, then standard transfer duty applies. Foreign purchasers pay a 9% surcharge on top. Here’s exactly how it works, with a worked example and current citations to Revenue NSW.

Last reviewed: April 2026 · Verify current rates at Revenue NSW
Quick Answer

How much stamp duty do first home buyers pay in NSW in 2026?

First home buyers in NSW pay no stamp duty on new or established homes up to $800,000, with a tapered concession between $800,000 and $1,000,000 — above that, full transfer duty applies. The foreign purchaser surcharge is 9% on top of standard duty (as at April 2026). For a typical $650,000 Sydney unit, a non-first-home buyer pays roughly $24,000 in transfer duty. Always verify current thresholds with the Revenue NSW calculator — rates move with state budget decisions.

  • $800K — FHB full exemption ceiling (new + established)
  • $800K–$1M — tapered FHB concession band
  • 9% — foreign purchaser surcharge (top of standard duty)
  • Payable within 3 months of contract or by settlement (whichever is earlier)
$800K
FHB stamp duty exemption ceiling for new or established homes
$0
Stamp duty a first home buyer pays on an $800K Sydney home
9%
Foreign purchaser surcharge in addition to standard transfer duty
01
How transfer duty works in NSW
NSW stamp duty (formally transfer duty) is a tax on property purchases administered by Revenue NSW. The amount you pay is calculated on the higher of the contract price or the market value of the property, using graduated rate brackets. The buyer always pays; the seller pays nothing. Duty must be paid within 3 months of the contract date, or by settlement — whichever comes first.
02
First Home Buyer Assistance Scheme (FHBAS)
Under the First Home Buyer Assistance Scheme, eligible first home buyers pay no transfer duty on new or established homes up to $800,000. Between $800,000 and $1,000,000, a tapered concession applies. You must be at least 18, have never owned property in Australia, be buying a principal place of residence, and move in within 12 months (living there for at least 6 continuous months).
03
Vacant land — separate thresholds
If you’re buying vacant land to build on, the FHBAS exemption ceiling is lower: full exemption up to $350,000, with a tapered concession between $350,000 and $450,000. This recognises that the combined land + build cost can still be reasonable while the land itself is well below the residence thresholds.
04
Foreign purchaser surcharge
Non-Australian citizens and non-permanent residents pay an additional surcharge purchaser duty on top of standard transfer duty. The rate is 9% as at April 2026 (raised from 8% in January 2025). This applies to residential property purchases and is paid at the same time as standard duty.
05
Worked example — $650,000 Sydney unit
Non-first-home buyer purchasing a $650,000 established unit in Sydney pays approximately $24,300 in standard transfer duty (using Revenue NSW’s 2026 graduated brackets). A first home buyer meeting FHBAS eligibility pays $0. A foreign buyer at the same price pays approximately $24,300 + $58,500 (9% surcharge) = $82,800. Always run your specific situation through the Revenue NSW calculator for an exact figure.

⚠ Rates change — always verify before you rely on these figures

Transfer duty rates, thresholds and surcharges are set by NSW state budget decisions and can move between annual budgets. The figures above reflect Revenue NSW’s position as at April 2026. Before committing to a purchase, verify current rates at Revenue NSW or run the official calculator. This guide is general information, not financial or legal advice.

Where NSW buyers trip up

Forgetting the 12-month occupancy rule
FHBAS requires you to move in within 12 months of settlement and live there continuously for at least 6 months. Buyers who hold the property as an investment first lose the exemption and pay full duty plus penalty interest.
Assuming the $800K ceiling is indexed
The FHBAS ceiling has not moved with Sydney house prices. If the state budget doesn’t raise it, rising prices push more first home buyers above the threshold each year. Plan around the current number, not a hopeful higher one.
Not budgeting for duty on top of the deposit
Non-FHB buyers need stamp duty as cash at settlement — it’s typically the largest single upfront cost after the deposit. A $1.2M Sydney house attracts roughly $50,000 of transfer duty. Many lenders won’t let you borrow it.
Missing the surcharge as a permanent resident applicant
If you hold a permanent residency application (not yet granted), you’re still treated as a foreign purchaser for surcharge purposes. Check your residency status with your conveyancer before exchange.

NSW stamp duty FAQ

No, first home buyers in NSW pay no stamp duty on new or established homes up to $800,000. A tapered concession applies between $800,000 and $1,000,000, and full transfer duty applies above $1,000,000. Eligibility requires you move in within 12 months and live there at least 6 continuous months. Verify current thresholds at Revenue NSW.

Foreign purchasers pay an additional 9% surcharge purchaser duty on top of standard transfer duty (as at April 2026). This applies to non-citizens and non-permanent-residents buying residential property. Paid at the same time as standard duty. Verify current rate at Revenue NSW.

Stamp duty must be paid within 3 months of the contract date, or by settlement — whichever is earlier. Your conveyancer or solicitor handles this as part of settlement. Late payment attracts interest.

Some lenders allow it but it increases your Loan-to-Value Ratio (LVR) and may trigger LMI. Most buyers pay stamp duty from savings separate to the deposit. A home loan specialist can walk you through the trade-off — find a vetted specialist.

Using Revenue NSW’s graduated brackets, a non-first-home buyer pays approximately $24,300 on a $650,000 purchase. A first home buyer meeting FHBAS eligibility pays $0. Run your exact scenario through the Revenue NSW calculator for the precise figure.

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