NSW transfer duty — what most people still call "stamp duty" — is one of the largest upfront costs of buying property in New South Wales. For a $1 million home, an investor or upgrader pays around $40,000 in duty before they even see the keys. This guide walks through how the calculation actually works in 2025-26, who gets concessions, and three worked examples you can sanity-check against the Calcula stamp duty calculator.
Who charges stamp duty in NSW
Transfer duty in NSW is administered by Revenue NSW under the Duties Act 1997 (NSW). It applies to most transfers of dutiable property, including residential homes and investment properties. The buyer pays it, normally within three months of the contract date — although in practice your conveyancer settles it at, or shortly after, settlement.
The amount you pay depends on:
- the dutiable value of the property (usually the purchase price or, if higher, the market value);
- whether you qualify for a first home buyer concession;
- whether the property is your principal place of residence or an investment;
- whether the value crosses the NSW premium threshold (a higher rate that applies to expensive properties).
The 2025-26 NSW transfer duty schedule
For a standard purchase (not a first home buyer), NSW uses a sliding scale. The rates that apply for contracts entered from 1 July 2025 are roughly as follows:
| Property value | Duty calculation |
|---|---|
| $0 – $17,000 | $1.25 per $100 of value |
| $17,001 – $36,000 | $212 + $1.50 per $100 over $17,000 |
| $36,001 – $97,000 | $497 + $1.75 per $100 over $36,000 |
| $97,001 – $364,000 | $1,564 + $3.50 per $100 over $97,000 |
| $364,001 – $1,212,000 | $10,909 + $4.50 per $100 over $364,000 |
| $1,212,001 – $3,636,000 | $49,069 + $5.50 per $100 over $1,212,000 |
| Above the premium threshold (~$3,721,000 for 2025-26) | $182,389 + $7.00 per $100 over the threshold |
The premium threshold is indexed each year to median Sydney house prices and was lifted to roughly $3.72 million for 2025-26.
The Calcula calculator uses the same brackets internally, so the on-page result should match what your conveyancer quotes you, give or take a few dollars of rounding.
First home buyer concessions
If you're a first home buyer purchasing your principal place of residence, you may qualify for a full or partial duty exemption under the First Home Buyer Assistance Scheme (FHBAS). The current thresholds for 2025-26 are:
- Full exemption for new or existing homes valued up to $800,000;
- Concessional duty for homes valued between $800,000 and $1,000,000 (the duty phases up linearly across that band);
- For vacant land, the full exemption applies up to $350,000, with a concession up to $450,000.
To qualify you generally need to be over 18, an Australian citizen or permanent resident, never have owned residential property in Australia before, and live in the home for at least 12 continuous months within the first year of ownership.
Three worked examples
Example 1 — $750,000 home, not a first home buyer
The duty falls in the $364,001 – $1,212,000 band, so the calculation is:
Duty = $10,909 + ($750,000 − $364,000) × 4.5%
= $10,909 + $17,370 = $28,279
Add the typical $200–$300 of registration and search fees and you're looking at roughly $28,500 in upfront government charges on top of the deposit.
Example 2 — $750,000 home, first home buyer
This sits below the $800,000 FHB threshold, so duty is $0. That's roughly $28,000 saved compared to the standard rate — one of the biggest single tax breaks available to Australian first home buyers.
Example 3 — $1,500,000 investment property
The duty falls in the $1,212,001 – $3,636,000 band:
Duty = $49,069 + ($1,500,000 − $1,212,000) × 5.5%
= $49,069 + $15,840 = $64,909
For investors, foreign buyer surcharge duty (currently an additional 9%) may also apply, which would add roughly $135,000 to the bill on a $1.5m purchase. The Calcula calculator does not model foreign buyer surcharges — speak to a conveyancer if that applies to you.
Common mistakes to avoid
A few things trip up buyers regularly:
- Forgetting that "off the plan" delays don't pause duty. NSW removed the off-the-plan duty deferral for investors in 2017 — only owner-occupiers can defer for up to 12 months from contract.
- Assuming the FHB concession applies regardless of co-buyer. If your spouse has previously owned property, you generally lose the concession on a joint purchase.
- Confusing dutiable value with purchase price. Revenue NSW will use whichever is higher. If you buy a property below market value (for example, from a family member), the assessed value can be substantially higher than what you paid.
- Ignoring the indexed premium threshold. The premium threshold of ~$3.72 million for 2025-26 is reset every year — last year's figure won't apply to your contract.
Calculate your own NSW stamp duty
The fastest way to sanity-check your numbers is to plug them into the Calcula stamp duty calculator. It uses the same rates above, applies the FHB concession automatically when you tick the box, and gives you a clean before-and-after view of the duty saving.
If you're trying to budget the entire upfront cost of buying — duty plus deposit plus loan repayments — pair it with the mortgage calculator so you can see the monthly repayment alongside the day-one cash you'll need at settlement.
A short reminder on advice
This article explains how the rules work; it does not advise you on your individual situation. NSW transfer duty has many edge cases — mixed-use property, deceased estates, related party transfers, off-the-plan purchases, foreign person surcharges and shared equity schemes all have their own rules. Before signing any contract, get advice from a conveyancer or solicitor who handles NSW transactions regularly.
For the official source of truth, see Revenue NSW — Transfer duty.