How stamp duty works in Australia

Stamp duty — officially called land transfer duty or transfer duty — is a state government tax you pay when buying a property in Australia. It's one of the biggest upfront costs in a property purchase, often adding tens of thousands of dollars to the final price. Each state and territory sets its own rates and brackets, and the rules can change significantly depending on whether you're a first home buyer, investor, or foreign purchaser.

How it's calculated

Stamp duty is a progressive tax applied to the purchase price or market value (whichever is higher). Each state has its own set of brackets — usually a base amount plus a percentage of the amount above a threshold. For example, on an $800,000 property in NSW at the general rate you'd pay $11,602 plus 4.5% of the amount above $387,000 — $30,187 (2026–27 thresholds). The same price in Victoria is $43,070, and in Queensland $29,025 at the general rate, or $21,850 at the home concession rate if you will live in it. Not every band is marginal: in Victoria, between $960,000 and $2,000,000 the duty is 5.5% of the whole price.

State-by-state differences

The rates vary enormously. At $800,000 on general rates (checked against each revenue office on 1 October 2026) the duty runs from about $25,150 in the ACT and $29,025 in Queensland to $39,600 in the Northern Territory and $43,070 in Victoria, with NSW ($30,187), Tasmania ($31,185), Western Australia ($32,316) and South Australia ($37,830) in between. NSW and Victoria add premium rates at the top end (7% above $3,870,000 in NSW; 6.5% above $2,000,000 in Victoria). The Northern Territory uses a formula up to $525,000 and then a flat 4.95% of the whole price. Owner-occupiers pay less than the general rate in Queensland, the ACT and (up to $550,000) Victoria.

First home buyer concessions

Most states offer concessions or exemptions for first home buyers, but the rules differ (as published by each revenue office, checked 1 October 2026):

• NSW: Full exemption up to $800,000, concessional rate from $800,000 to $1,000,000
• VIC: Full exemption up to $600,000, concessional rate from $600,000 to $750,000
• QLD: No duty on established homes up to $700,000, with a concession phasing out below $800,000; no duty on new homes or vacant land to build on, at any price
• WA: No duty up to $600,000, concessional rate up to $800,000 (vacant land: $450,000 and $550,000), for transactions from 7 May 2026
• SA: No duty on new homes or vacant land to build on, at any price; no relief for established homes
• TAS: The exemption for established homes ended for transfers settling after 30 June 2026
• ACT: Eligible buyers under the Home Buyer Concession Scheme pay no duty from 1 July 2026
• NT: No first-home duty concession is listed; a house and land package exemption applies to some new builds

When is stamp duty payable?

In most states, stamp duty is due within 30 days of settlement (NSW: 3 months; VIC: 30 days). It's paid to your state revenue office, usually handled by your solicitor or conveyancer as part of the settlement process. Late payment attracts interest and penalties, so it's not something you can defer.

Common mistakes

• Forgetting to budget for stamp duty — on an $800k property it is roughly $25k–$43k at general rates, depending on the state
• Assuming the FHB concession applies automatically — you must apply and meet all eligibility criteria
• Missing that foreign buyers pay additional surcharges (for example 9% in NSW, 8% in Queensland and 7% in South Australia, on top of standard duty)
• Not realising that the premium rate kicks in above certain thresholds (e.g. $3.87M in NSW for 2026–27)