How Is Stamp Duty Calculated in Australia?

The short answer

Stamp duty (now called transfer duty in most states) is a state government tax on property purchases, calculated on the dutiable value of the property, usually the higher of the purchase price or market value. Each state and territory applies its own sliding scale of brackets, so duty rises as the property value rises, and first-home-buyer concessions or exemptions can reduce or remove it entirely below certain price caps. It is a one-off upfront cost paid around settlement, separate from your deposit and loan.

How stamp duty works in Australia

Stamp duty is charged by the state or territory where the property is located, not by the federal government, so the rate you pay in NSW differs from Victoria, Queensland, or WA. The amount is based on the property's dutiable value: typically the contract price, unless the market value is higher (for example, a below-market family transfer).

Within each state, duty is worked out on a progressive bracket system, similar to income tax. A fixed base amount applies up to a threshold, then a marginal rate (dollars per $100 of value) applies to everything above it. The result is that duty is a small percentage on cheaper homes and a larger percentage on expensive ones.

Several factors change the final figure:

• First-home-buyer status: most states offer full exemptions below a cap and partial concessions in a band above it.
• Owner-occupier vs investor: some states charge investors and foreign buyers more (surcharge purchaser duty).
• New build vs established: concessions sometimes differ for new homes or vacant land.

Stamp duty is not part of your home loan and generally can't be borrowed against the property the way the loan can. It usually has to come from your own funds at settlement, alongside your deposit, LMI if applicable, conveyancing, and registration fees.

Worked example: NSW, $800,000 home

NSW transfer duty for a non-first-home-buyer uses this bracket (2025-26): for values over $372,000, duty is $11,152 + $4.50 per $100 over $372,000 (Revenue NSW).

For an $800,000 purchase:

Step	Calculation	Result
Amount over $372,000	$800,000 − $372,000	$428,000
Marginal duty	$428,000 ÷ 100 × $4.50	$19,260
Plus base amount	$19,260 + $11,152	$30,412

So a standard buyer pays $30,412 in transfer duty on an $800,000 NSW home.

Now apply first-home-buyer status. In NSW, a first home buyer purchasing a new or existing home valued at $800,000 or less is fully exempt, with a concession applying from $800,000 up to $1,000,000 (Revenue NSW first home buyers). At exactly $800,000, the duty drops to $0, a saving of $30,412.

That difference can completely change your total funds required at settlement, which is why modelling both cases matters.

Model this in True Loan

True Loan calculates transfer duty for all 8 states and territories, with the first-home-buyer concession built in, then rolls it into your total upfront costs. It's fully free and client-side, with no login.

To model the example above:

1. Set the property price to $800,000 and choose NSW.
2. Toggle first home buyer on and off to see duty swing between $0 and $30,412.
3. Check the upfront costs panel: duty sits alongside your deposit, LMI estimate, government registration fees, and conveyancing to give total funds required at settlement.

Want to weigh up two purchases, say a $700,000 first home vs an $800,000 one, or NSW vs Victoria? Use the side-by-side comparison tool; every scenario is shareable via its URL. If you're separately planning extra contributions later, note that True Loan keeps Offset balance and Extra repayment ($/month) as two distinct inputs, though those affect your loan over time rather than your upfront duty.

Common questions and mistakes

Is stamp duty the same in every state? No. Each state and territory sets its own brackets and concessions. A figure that's right for NSW won't match Victoria or Queensland; see first-home-buyer thresholds by state.

Can I add stamp duty to my home loan? Not directly, since duty isn't secured against the property like the loan principal. You generally need it as cash at settlement, though some buyers free up funds elsewhere. It isn't capitalised the way LMI can be.

Does the First Home Guarantee remove stamp duty? No; that's a separate federal scheme. The First Home Guarantee lets eligible first home buyers purchase with a 5% deposit and no LMI (with state-based price caps, e.g. $1.5m for Sydney from 1 October 2025), but stamp duty concessions are still governed by your state revenue office.

Is duty based on the price or the loan? The property's dutiable value, not your loan size. A bigger deposit doesn't reduce duty.

Don't forget it in your budget. Many first-time buyers size their deposit but overlook duty, leaving them short at settlement. Always include it in your total upfront cost.

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These figures are estimates for the 2025-26 financial year and general information only, not financial or credit advice. Always confirm current rates with your state revenue office and moneysmart.gov.au before committing.