How Does Stamp Duty Work in NSW?
Stamp duty is one of the biggest upfront costs of buying a home. Here is who pays it, how it is calculated, what it costs at common price points and where first home buyers pay less.
Key Takeaways
- Who pays stamp duty, the buyer or the seller? The buyer. Sellers in NSW do not pay stamp duty when they sell.
- How is it calculated? On a sliding scale, applied to the contract price or the market value, whichever is higher. For 2026/27 the rates run from 1.25% on the first $18,000 up to 5.5% above $1,290,000.
- How much is it on a typical home? About $25,687 on a $700,000 purchase, $30,187 on $800,000 and $39,187 on $1,000,000, before any first home buyer relief.
- When is it paid? By the earlier of settlement or 3 months after the contract date.
- Can I pay less? First home buyers pay no duty on homes up to $800,000 and a reduced rate under $1,000,000.
How does stamp duty work in NSW? Stamp duty, officially called transfer duty, is a tax the buyer pays Revenue NSW when they acquire a property. It is worked out on a sliding scale against the contract price or the property’s market value, whichever is higher, and on most homes it adds tens of thousands of dollars to the cost of buying. You need to budget for it before you make an offer, not after.
What is stamp duty in NSW?
Transfer duty, better known as stamp duty, is a tax that must be paid when you acquire a property in NSW. That includes properties you receive as a gift and properties you obtain through a company or trust.
It is a one off cost on the purchase. It is not the same as land tax, which is an annual tax on land you own (your own home is generally exempt), and it is not the same as council rates.
Who pays stamp duty, the buyer or the seller?
The buyer pays stamp duty in NSW. It is assessed on the person acquiring the property, so the seller has nothing to pay. If more than one person is buying, the duty is assessed on the whole purchase and the buyers are responsible for it together.
Buyers who are foreign persons may also have to pay surcharge purchaser duty on top of transfer duty. We check this through the purchaser declaration every buyer completes.
Do you pay stamp duty when you sell a house?
No. You do not pay stamp duty when you sell a house in NSW. Stamp duty is only payable on a purchase or transfer to you. Sellers have their own costs, such as agent’s commission, conveyancing, discharging the mortgage and sometimes capital gains tax, but stamp duty is not one of them.
How is stamp duty calculated in NSW?
Stamp duty is calculated on a sliding scale. Each band of the price is taxed at its own rate, so a dearer property pays a higher rate on the top slice of its value, not on the whole amount. The scale is applied to the contract price or the property’s current market value, whichever is higher, which is why a cheap sale to a family member is still assessed on market value.
These are the Revenue NSW rates for the 2026/27 financial year. The thresholds are indexed each year on 1 July, and the rates that apply are the ones in force on your contract date.
| Dutiable value | Duty payable |
|---|---|
| $0 to $18,000 | $1.25 for every $100 (minimum $20) |
| $18,001 to $38,000 | $225 plus $1.50 for every $100 over $18,000 |
| $38,001 to $103,000 | $525 plus $1.75 for every $100 over $38,000 |
| $103,001 to $387,000 | $1,662 plus $3.50 for every $100 over $103,000 |
| $387,001 to $1,290,000 | $11,602 plus $4.50 for every $100 over $387,000 |
| Over $1,290,000 | $52,237 plus $5.50 for every $100 over $1,290,000 |
| Residential over $3,870,000 (premium duty) | $194,137 plus $7.00 for every $100 over $3,870,000 |
How much is stamp duty on a house in NSW?
Here is what the 2026/27 scale works out to at common price points, for a buyer who is not a first home buyer. Figures are rounded to the nearest dollar.
| Purchase price | Standard duty | Eligible first home buyer |
|---|---|---|
| $500,000 | $16,687 | $0 |
| $650,000 | $23,437 | $0 |
| $700,000 | $25,687 | $0 |
| $800,000 | $30,187 | $0 |
| $900,000 | $34,687 | Reduced rate |
| $1,000,000 | $39,187 | Full duty |
| $1,300,000 | $52,787 | Full duty |
For an exact figure, use the official NSW stamp duty calculator, or send us the contract and we will work it out for you.
Worked example
You buy a home in Lake Macquarie for $700,000. The first $387,000 attracts duty of $11,602. The remaining $313,000 is taxed at $4.50 per $100, which is $14,085. Your total stamp duty is $25,687, paid on top of the price.
When is stamp duty payable in NSW?
Stamp duty must be paid by the earlier of settlement or 3 months after the contract date. On a standard 42 day settlement that means it is paid at settlement, out of the settlement funds. On a longer settlement it can fall due well before you get the keys, so you need the money ready earlier. Our guide on when you pay stamp duty covers the timing in detail.
“Stamp duty is assessed on whichever is higher: the price you agreed or the market value.”
Do first home buyers pay stamp duty in NSW?
Not on most homes. Under the First Home Buyers Assistance Scheme, an eligible first home buyer pays no transfer duty on a new or existing home valued up to $800,000, and a concessional rate on a home above $800,000 and under $1,000,000. For vacant land the exemption applies up to $350,000, with a concession under $450,000. You must move in within 12 months of settlement and live there for at least 12 continuous months. Our guide to the First Home Buyers Assistance Scheme explains who qualifies.
Do you pay stamp duty on a gift or family transfer?
Usually yes. A gift or a sale to a family member is assessed on the property’s market value, even if no money changes hands or the price is well below value. There are exemptions, such as a transfer of the family home between spouses or de facto partners, and transfers that follow a relationship breakdown. Our page on transferring a property in NSW sets out which transfers attract duty.
How do we handle your stamp duty?
We work out your duty before you exchange
Send us the contract and we will calculate the duty and any relief you qualify for, so it goes into your budget before you commit.
We check every exemption and concession
First home buyer relief, spouse transfers and other exemptions all have strict rules. We confirm whether you qualify and complete the paperwork with you.
We lodge it with Revenue NSW
We lodge the contract for assessment and include the duty in your settlement figures, so it is paid on time and there are no surprises on the day.
In plain English
The buyer pays stamp duty, the seller does not. It is a one off tax worked out on a sliding scale, and on most homes it is the biggest cost after the deposit. First home buyers under $800,000 pay nothing. Everyone else should know their number before they make an offer.
Not sure what stamp duty will be on your purchase? Send us the contract and we will tell you.
Want your stamp duty figure?
Talk to Justin, Julie, Amanda or Nicole. Send us the contract and we will tell you exactly what duty applies to your purchase.
