NSW Stamp Duty Explained. Rates Concessions and How to Calculate It

Transfer duty is the single largest upfront cost most buyers face after the deposit. In New South Wales it can run into tens of thousands of dollars on a typical Sydney purchase, and the rate schedule moves in steps that surprise first-time buyers. This guide walks through the 2026 NSW transfer duty rates, who qualifies for a concession or full exemption, how foreign purchasers are treated, and how the calculation actually works on a real purchase price.

AgentBridge publishes this guide for buyers, sellers and developers who want a clear picture of the duty cost before they sign a contract. The figures here are sourced directly from Revenue NSW and current as at 22 May 2026. Rates are CPI-indexed annually, so confirm the live figures with Revenue NSW before settlement.

What Stamp Duty Is in NSW

Transfer duty (the formal name in NSW since 2018) is a state tax on the dutiable value of a property transfer. In most cases the dutiable value is the higher of the contract price or the market value of the property. Revenue NSW administers the tax under the Duties Act 1997.

The buyer pays the duty, not the seller. It falls due within 3 months of signing the contract for an existing property, or within 3 months of settlement for off-the-plan purchases where the off-the-plan deferral applies. Late payment attracts interest and penalty tax.

Transfer duty applies to every residential, commercial and vacant land purchase in NSW unless a specific exemption is in force. The most common exemptions cover first home buyers under the First Home Buyers Assistance Scheme, certain spousal and family transfers, and deceased estate transfers between beneficiaries.

The 2026 NSW Stamp Duty Rate Schedule

The standard NSW transfer duty rate schedule has 7 brackets. These rates apply to contracts dated on or after 1 July 2025 and are CPI-indexed each year on 1 July.

Property Value Bracket	Duty Rate
$0 to $17,000	$1.25 per $100 (minimum $20)
$17,001 to $37,000	$212 plus $1.50 per $100 over $17,000
$37,001 to $99,000	$512 plus $1.75 per $100 over $37,000
$99,001 to $372,000	$1,597 plus $3.50 per $100 over $99,000
$372,001 to $1,240,000	$11,152 plus $4.50 per $100 over $372,000
$1,240,001 to $3,721,000	$50,212 plus $5.50 per $100 over $1,240,000
Over $3,721,000 (premium duty, residential)	$186,667 plus $7.00 per $100 over $3,721,000

The premium duty rate in the top bracket only applies to residential properties valued over $3,721,000. Commercial property over that threshold reverts to the standard 5.50% top marginal rate. Rates and thresholds are CPI-indexed annually, so the 2027 brackets will shift slightly on 1 July 2026.

Worked Example. Calculating Duty on a $750k and $1.5M Purchase

Two worked examples show how the bracket method works in practice.

Example 1. $750,000 established home in Western Sydney.

The $750,000 purchase falls in the $372,001 to $1,240,000 bracket. Duty is $11,152 plus $4.50 per $100 over $372,000.

The amount over $372,000 is $378,000. Divided by $100 that gives 3,780 units of $100. Multiplied by $4.50 the variable component is $17,010. Total duty payable is $11,152 plus $17,010, or $28,162.

For a non-first-home-buyer, that $28,162 is the bill. A first home buyer purchasing this same property would pay nothing because it sits under the $800,000 full exemption threshold.

Example 2. $1,500,000 inner-Sydney apartment.

The $1,500,000 purchase falls in the $1,240,001 to $3,721,000 bracket. Duty is $50,212 plus $5.50 per $100 over $1,240,000.

The amount over $1,240,000 is $260,000. Divided by $100 that gives 2,600 units of $100. Multiplied by $5.50 the variable component is $14,300. Total duty payable is $50,212 plus $14,300, or $64,512.

A buyer at this price sits well above the first home buyer threshold and pays the full amount. Foreign purchasers would pay an additional 8% surcharge on top, which is set out below.

First Home Buyer Concession or Exemption. Who Qualifies and What You Get

The NSW First Home Buyers Assistance Scheme provides a full exemption from transfer duty for eligible first home buyers up to a property value cap, and a concessional rate for purchases just above the cap. The current thresholds have applied since 1 July 2023.

New and existing homes:

• Full exemption for properties up to $800,000.
• Concessional duty for properties between $800,001 and $999,999.
• No concession above $1,000,000.

Vacant land:

• Full exemption for land up to $350,000.
• Concessional duty for land between $350,001 and $449,999.
• No concession above $450,000.

To qualify under the scheme, the buyer must be an individual (not a company or trust), at least one applicant must be an Australian citizen or permanent resident, and neither the buyer nor their spouse can have previously owned residential property anywhere in Australia. At least one applicant must occupy the home as their principal place of residence for a continuous period of 12 months commencing within 12 months of settlement.

The previous First Home Buyer Choice property tax option, which let some buyers choose an annual property tax instead of upfront duty, was closed to new applicants on 30 June 2023. Existing participants who opted in before that date continue to pay annual property tax on those properties.

Foreign Purchaser Surcharge. What Applies

Foreign persons buying residential property in NSW pay surcharge purchaser duty in addition to standard transfer duty. The surcharge rate is 8% of the dutiable value, charged on top of the standard duty calculation.

A foreign person, for surcharge duty purposes, includes individuals who are not Australian citizens or permanent residents, foreign corporations, and foreign trusts. New Zealand citizens who hold a Special Category Visa may still be foreign persons unless they meet specific residence tests. The surcharge applies regardless of whether the buyer is purchasing as an owner-occupier or investor.

On the $1.5M example above, an 8% surcharge would add $120,000 to the duty bill, bringing total transfer duty to $184,512 for a foreign purchaser. Surcharge applies only to residential property, not commercial or industrial land.

Other Concessions Worth Knowing

Several other transfer duty concessions and exemptions exist in NSW outside the first home buyer scheme.

Off-the-plan deferral. Buyers purchasing an off-the-plan residential property they intend to occupy as their principal place of residence may defer paying transfer duty for up to 12 months from the contract date, or until settlement, whichever is earlier. This is a timing concession, not a reduction in the duty itself.

Spousal and de facto transfers. Transfers between spouses or de facto partners of an interest in a principal place of residence are exempt from transfer duty, provided certain ownership and occupation conditions are met. The exemption also applies to transfers that result from a court order or binding financial agreement following separation.

Deceased estate transfers. Transfers to a beneficiary of a deceased estate in accordance with the terms of a will or under the laws of intestacy are generally subject only to nominal duty of $50.

Family farm transfers. Transfers of farming property between family members may qualify for a full exemption under specific conditions, including that the property has been used for primary production for at least 5 years.

Charitable and government transfers. Transfers to registered charities, religious organisations and certain government bodies are exempt or eligible for concessional treatment.

No general pensioner concession applies in NSW for transfer duty. The First Home Buyers Assistance Scheme remains the main mechanism for owner-occupier relief.

How and When You Pay

Transfer duty in NSW is assessed by Revenue NSW based on the executed contract. The conveyancer or solicitor acting for the buyer lodges the contract and supporting documents through the electronic Duties Online (eDuties) system, which produces a duty assessment notice.

Duty must be paid before the transfer can be registered with NSW Land Registry Services. In practice, payment is settled through the buyer's conveyancer at or shortly before settlement, with the funds drawn from the buyer's settlement cheque or loan proceeds.

The strict legal deadline is 3 months from the contract date. Off-the-plan contracts where the buyer is eligible for the residence requirement may defer payment until settlement (or 15 months from contract date, whichever is earlier). Late payment attracts daily interest at the market rate plus penalty tax that can reach 25% of the duty payable.

Speak to a licensed conveyancer or solicitor for advice on timing and any concessions that may apply to your specific purchase.

Frequently Asked Questions

Do first home buyers pay any stamp duty in NSW on a $750,000 purchase? No. A property valued at $750,000 sits under the $800,000 full exemption threshold, so an eligible first home buyer pays $0 transfer duty. Eligibility requires Australian citizenship or permanent residency for at least one applicant, no prior property ownership, and a 12-month owner-occupation commitment.

What stamp duty applies if a foreign buyer purchases a $1,000,000 property in NSW? Standard duty on $1,000,000 is approximately $39,402 (calculated using the $372,001 to $1,240,000 bracket). Foreign purchaser surcharge of 8% adds $80,000. Total duty payable is around $119,402 before any other fees.

Is the NSW First Home Buyer Choice annual property tax still available? No. The option closed to new applicants on 30 June 2023. Buyers who opted in before that date continue to pay annual property tax on the property they selected. All new first home buyers fall under the First Home Buyers Assistance Scheme described above.

How is transfer duty calculated on off-the-plan apartments in NSW? Duty is calculated on the contract price using the standard rate schedule. Eligible owner-occupier buyers can defer payment for up to 15 months from the contract date. The deferral is a cashflow benefit only; the duty rate itself does not change.

Does NSW have a pensioner concession on stamp duty? No general pensioner concession applies to transfer duty in NSW. The main relief mechanism is the First Home Buyers Assistance Scheme. Pensioners may qualify for the scheme if they meet the no-prior-ownership requirement.

Related Resources

• Australian Stamp Duty Explained State by State — AgentBridge national pillar on transfer duty across all 8 states and territories.
• How to Buy Property in New South Wales — the full NSW purchase process from offer to settlement.
• NSW First Home Buyer Grants Schemes and Concessions for 2026 — companion guide to the First Home Owner Grant and the wider NSW first home buyer support landscape.

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Last reviewed: 22 May 2026. Figures sourced from Revenue NSW. This article is general information only and does not constitute financial product advice. Confirm current rates and your eligibility directly with Revenue NSW or a licensed conveyancer before signing any contract.