Stamp Duty When Buying Property in Australia: How Much You'll Pay in 2026

Stamp duty is one of the largest upfront costs you will face when buying property in Australia, and it consistently catches buyers off guard. On a median-priced home in Melbourne or Sydney, stamp duty alone can add $30,000 to $60,000 to your purchase costs before you have even paid a removalist or turned on the power. That is not a rounding error. It is a figure that can derail a budget, delay a purchase, or force you to rethink your entire deposit strategy.

Yet most buyers spend months researching suburbs, floor plans, and interest rates while giving stamp duty almost no thought until they are sitting in a conveyancer's office. By then, the purchase is locked in and the options are limited. The smarter move is to understand exactly what you will owe, in which state, under which rules, well before you sign anything.

This guide covers everything you need to know about stamp duty when buying property in Australia in 2026. I will walk you through how it is calculated, what each state actually charges, where first home buyer exemptions apply, how off-the-plan and vacant land rules differ, and how to build stamp duty into your overall buying budget. I will also share some real outcomes from buyers I have worked with, because the numbers on a page mean more when you see what they look like in practice.

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Key Takeaways

• Stamp duty (also called transfer duty or land transfer duty depending on the state) is a state government tax paid on the purchase price or market value of a property, whichever is higher.
• Rates are calculated on a tiered, progressive basis. The rate on the first bracket of value is lower than the rate on the top bracket.
• First home buyers in every mainland state and territory receive some form of exemption or concession, but eligibility thresholds, property price caps, and conditions vary significantly.
• Foreign buyers pay an additional surcharge on top of standard duty in every state, ranging from 7% to 8% of the purchase price.
• Off-the-plan purchases may qualify for duty concessions in some states, but the rules changed significantly in Victoria after 2024 and you need current advice.
• Stamp duty is typically due within 30 days of settlement in most states, and it must be factored into your deposit and borrowing strategy from day one.

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Summary Table: Stamp Duty Rates, Thresholds, and First Home Buyer Concessions by State (2026)

Rates and thresholds are indicative for 2026 and subject to state budget updates. Confirm current figures with each state revenue office before transacting.

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What Is Stamp Duty and Who Pays It?

Stamp duty is a state and territory government tax applied to the purchase of property and certain other dutiable transactions. In Victoria it is formally called land transfer duty. In Queensland and New South Wales it is called transfer duty. Regardless of the label, the mechanics are the same: when you buy a property and the title transfers to your name, the state government charges a percentage of the dutiable value.

The dutiable value is generally the greater of the purchase price and the market value of the property. If you buy at arm's length (that is, between unrelated parties in a genuine commercial transaction), the purchase price is almost always accepted as the dutiable value. Where you buy from a related party or in circumstances where the sale price may not reflect market value, the state revenue office can assess duty on its own market value determination.

Who Is Responsible for Paying?

The buyer pays stamp duty in Australia. This is non-negotiable and it cannot be passed to the vendor as part of a standard transaction. In some commercial arrangements, parties may agree to gross-up the price to account for duty, but in residential property the buyer carries the obligation entirely.

Your conveyancer or solicitor handles the practical lodgement and payment on your behalf, but the funds come from you. In most states, stamp duty is due at or shortly after settlement. In Victoria, the State Revenue Office (SRO) requires duty to be paid before the transfer of land can be registered, which in practice means it is settled at the same time as the purchase.

What Transactions Are Dutiable?

Residential property purchases are the most common dutiable transaction, but stamp duty also applies to:

• Commercial property purchases
• Vacant land purchases
• Off-the-plan purchases (with some concessions in certain states)
• Transfers of property between related parties, even without payment, in some circumstances
• Business acquisitions that include land or land-rich entities

Leases and mortgages used to attract stamp duty in some states, but most states have progressively removed duty on those instruments over the past decade.

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How Is Stamp Duty Calculated?

Stamp duty is not a flat percentage of the purchase price. It is calculated on a tiered, progressive scale, similar in structure to income tax. You pay a lower rate on the first portion of the property's value and a higher rate on each subsequent tier above that.

The Progressive Calculation Method

Here is how it works in practice. Each state sets out a table of value brackets with a fixed charge up to the bottom of the bracket and a percentage rate applied to the value within that bracket. Your total duty is the sum of each bracket's component.

For example, under Victoria's 2026 general rate schedule, a property purchased for $900,000 attracts duty roughly as follows:

• On the first $25,000: $1.40 per $100 (approximately $350)
• On the next $100,000 ($25,001 to $130,000): $2.40 per $100 (approximately $2,520)
• On the next $870,000 up to $960,000: this continues through each bracket at increasing rates up to 5% on values between $300,001 and $960,000

The total for a $900,000 Victorian property comes to approximately $49,870 in standard duty. That is a substantial cost and one that many buyers underestimate when they first enter the market.

Using a Stamp Duty Calculator

Every state revenue office publishes its own stamp duty calculator online. These tools are reliable for standard residential purchases. You input the purchase price, your residency status, whether you are a first home buyer, and whether the property is new or established, and the calculator returns the duty amount.

For anything more complex, including off-the-plan purchases, related-party transfers, or purchases involving trusts or companies, get formal advice from your conveyancer or a specialist duty adviser. The calculators are accurate for straightforward cases but they do not account for every concession or surcharge scenario.

A Worked Example: $750,000 Purchase in Victoria

A first home buyer purchasing an established home for $750,000 in Victoria in 2026 would be at the top end of the concession band. Under the current first home buyer concession threshold of $750,000, they would receive a partial concession but not a full exemption (which only applies below $600,000). The duty payable would be reduced but not eliminated. At full standard rates for a non-concession buyer, a $750,000 Victorian purchase attracts approximately $40,070 in duty. The concession reduces this meaningfully, though the exact reduction is calculated on a sliding scale.

A buyer purchasing the same property in Queensland at $750,000 would pay approximately $27,090 in standard transfer duty, given Queensland's lower general rates at that value range.

These differences matter. If you are deciding between markets, or between buying now or waiting, the duty calculation should be part of that decision.

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State-by-State Stamp Duty Rates and Thresholds in 2026

Victoria

Victoria uses the term "land transfer duty" and the State Revenue Office administers collection. The general rate schedule in 2026 applies rates from 1.4% on the lowest value bracket up to 5.5% on property valued above $960,000. A premium duty rate of 6.5% applies to residential property with a dutiable value exceeding $2,000,000.

Victoria has historically had among the highest effective stamp duty rates in the country relative to median property prices. With Melbourne's median house price sitting above $900,000 in 2026, the majority of standard house purchases attract duty in the 4.5% to 5.5% effective range.

Victoria also operates the land transfer duty calculator at the SRO website, which accounts for the principal place of residence concession (a 10% duty reduction for owner-occupiers purchasing between $130,001 and $550,000), the first home buyer exemption and concession, and off-the-plan concessions for eligible purchasers.

New South Wales

NSW charges transfer duty on a tiered scale with a top marginal rate of 5.5% on the component of the dutiable value exceeding $1,168,000. For premium residential property over $3,101,000, an additional premium duty of 7% applies.

NSW introduced an optional annual property tax for first home buyers in 2023 as an alternative to paying stamp duty upfront. Under this scheme, eligible first home buyers could choose to pay a smaller ongoing annual land tax instead of the lump-sum duty. This option has been subject to review and modification, so confirm current eligibility with Revenue NSW before relying on it in your purchase planning.

For a $950,000 purchase in NSW, standard transfer duty is approximately $37,890. The first home buyer exemption covers properties up to $800,000 in full, and a partial concession applies up to $1,000,000.

Queensland

Queensland's transfer duty rates are calculated by the Queensland Revenue Office. The top marginal rate of 5.75% applies to dutiable value exceeding $1,000,000. Queensland does not apply a separate premium rate above that, which means its effective rate on very high-value properties can be slightly lower than some other states.

Queensland's rates at the $500,000 to $800,000 range are generally more competitive than Victoria and NSW, which is one of the factors driving interstate migration to South East Queensland. A $600,000 purchase in Queensland attracts approximately $12,850 in standard duty compared to approximately $31,070 in Victoria.

First home buyers in Queensland receive a full concession on homes up to $700,000 and a partial concession up to $800,000.

Western Australia

WA's transfer duty is administered by the WA Department of Finance (RevenueWA). Rates top out at 5.15% on dutiable value over $725,000. WA has a relatively generous threshold structure at lower price points compared to eastern states.

For a $500,000 purchase in WA, standard duty is approximately $17,765. WA first home buyers receive a full exemption on established homes up to $450,000 and vacant land up to $300,000, with concessions tapering up to $600,000 for homes and $400,000 for land.

Perth's strong price growth in 2025 and 2026 has pushed more buyers above the concession threshold, which the WA government has been under pressure to revise upward.

South Australia

SA's stamp duty is administered by RevenueSA. The top rate of 5.5% applies to dutiable value over $500,000. SA does not offer a standalone first home buyer stamp duty exemption in the same way as other states. Instead, first home buyers may access the First Home Owner Grant (FHOG) and certain construction-related concessions, but stamp duty is generally payable on established home purchases regardless.

For a $600,000 purchase in SA, stamp duty is approximately $26,830. This is a notable difference from QLD or NSW where a first home buyer in that range might pay nothing or very little.

ACT and NT

The Australian Capital Territory abolished stamp duty for owner-occupiers in stages and replaced it with a land tax through rates. First home buyers in the ACT may pay minimal or no duty depending on income thresholds under the Home Buyer Concession Scheme.

The Northern Territory administers its own transfer duty with rates up to 5.45% and offers a first home buyer discount of up to $18,601 for eligible purchases.

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First Home Buyer Stamp Duty Exemptions and Concessions

What Is the Difference Between an Exemption and a Concession?

A full exemption means no stamp duty is payable at all. A concession means duty is reduced, usually on a sliding scale as the purchase price approaches the upper threshold. If you are a first home buyer purchasing just inside the exemption threshold, the saving is significant. If you are just above the threshold, the concession still helps but you will still pay some duty.

Victoria's First Home Buyer Exemption and Concession

In Victoria in 2026, first home buyers purchasing a principal place of residence receive:

• A full duty exemption on properties with a dutiable value up to $600,000
• A concession on a sliding scale for properties valued between $600,001 and $750,000
• No concession on properties valued above $750,000

This applies to both new and established homes. To qualify, you must be a natural person (not a company or trust), be an Australian citizen or permanent resident, occupy the home as your principal place of residence within 12 months of settlement, and not have previously owned residential property in Australia.

The saving on a $599,000 purchase in Victoria is significant. Standard duty on that purchase would be approximately $31,014. With the first home buyer exemption, you pay nothing. That is more than $31,000 staying in your pocket.

NSW First Home Buyer Assistance

NSW's First Home Buyer Assistance Scheme provides a full transfer duty exemption on new and existing homes up to $800,000 and vacant land up to $400,000. A concession applies on homes between $800,001 and $1,000,000 and on land between $400,001 and $500,000.

NSW also allows eligible first home buyers to choose the annual property tax option instead of paying duty upfront, which can improve short-term cash flow at the cost of an ongoing levy. The annual tax is based on the land value of the property and continues to apply each year you own it as an owner-occupier.

Queensland First Home Buyer Concession

Queensland offers a full transfer duty concession for first home buyers on homes valued up to $700,000 and a partial concession up to $800,000. The property must be a new or existing residential home that you intend to occupy as your principal place of residence within one year. Vacant land is also eligible under separate thresholds.

Client Case Study: First Home Buyer in Brisbane

I worked with a couple relocating from Melbourne to Brisbane who were purchasing their first home together. They had a budget of $680,000 and were torn between a property in a well-established suburb at $695,000 and one in a neighbouring suburb at $680,000.

The $680,000 purchase qualified for a full first home buyer concession in Queensland, meaning they paid zero transfer duty. The $695,000 purchase sat above the full concession threshold, and at that price the partial concession still applied, but the duty payable was approximately $2,100. They ultimately chose the $680,000 property, and the zero-duty outcome freed up those funds to cover their moving costs and initial furnishing without touching their offset account.

The lesson: knowing where the thresholds sit can genuinely shape your purchase decision, especially when you are comparing properties within a narrow price range.

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Off-the-Plan Purchases and Stamp Duty

Off-the-plan purchases have historically attracted duty concessions because duty was assessed on the contract price minus the value of construction that had not yet occurred. This effectively reduced the dutiable value and lowered the duty payable.

Victoria made significant changes to off-the-plan duty concessions from October 2024. The changes narrowed eligibility so that the concession now applies only to owner-occupiers (those who will live in the property) rather than investors. The concession is also now capped at the applicable threshold for principal place of residence purchases.

For first home buyers purchasing off the plan in Victoria, the first home buyer exemption or concession still applies provided the dutiable value (using the amended calculation method) falls within the relevant threshold. This means the final duty outcome on an off-the-plan purchase in Victoria requires careful calculation and professional advice rather than a quick estimate.

In Queensland and NSW, off-the-plan concessions also exist but with their own conditions. In NSW, the duty on off-the-plan purchases by owner-occupiers is assessed on the land value at the time of the contract, not the completed property value, which can produce significant savings on high-value developments.

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Vacant Land and Stamp Duty

Buying vacant land to build on attracts stamp duty in the same way as buying an established property, calculated on the purchase price of the land. However, the rates and concessions differ from residential home purchases in some states.

In Victoria, vacant land purchased by a first home buyer to build a principal place of residence is eligible for the first home buyer exemption or concession, but the thresholds are lower than for established homes. The SRO applies the full exemption on vacant land up to $300,000 and a concession up to $400,000.

When you build, a separate question arises: duty is not payable on the construction contract, only on the land purchase. This is one reason house-and-land packages can offer a duty advantage compared to buying a completed new home at the same total cost.

Client Case Study: House-and-Land Package in Melbourne's Growth Corridor

I had buyers looking at a house-and-land package in Melbourne's outer northern growth corridor. The land was priced at $320,000 and the build contract was $420,000, giving a total package cost of $740,000.

Because stamp duty is assessed on the land component only, and the land was $320,000, the buyers qualified for the full first home buyer exemption in Victoria (land under the $300,000 threshold sits at zero duty, and even just over at $320,000 attracts only minimal duty with the concession applied). Contrast that with buying a completed new home at $740,000, where they would have paid a meaningful concession-reduced but not zero duty amount.

The structure of the transaction made a real difference. We worked through the numbers before they signed anything, which is exactly when that analysis is most useful.

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Foreign Buyer Surcharges

Foreign persons purchasing residential property in Australia pay an additional stamp duty surcharge on top of standard duty. Every state applies this surcharge, though the rate and definition of "foreign person" varies.

• Victoria: 8% surcharge on the dutiable value
• New South Wales: 8% surcharge
• Queensland: 7% surcharge
• Western Australia: 7% surcharge
• South Australia: 7% surcharge

A foreign person is generally defined as someone who is not an Australian citizen or a permanent resident. Temporary visa holders, including those on partner visas that have not yet been granted permanency, are typically subject to the surcharge. New Zealand citizens are treated differently across states and may be exempt in some jurisdictions under specific conditions.

In Victoria, the foreign purchaser additional duty (FPAD) applies to residential property and is assessed on the entire dutiable value, not just the portion above a threshold. On a $1,000,000 purchase in Victoria, a foreign buyer would pay approximately $55,000 in standard duty plus $80,000 in FPAD, for a total duty liability of approximately $135,000. That is 13.5% of the purchase price paid in duty before any other costs.

Foreign buyers also face restrictions under the Foreign Investment Review Board (FIRB) framework, which is a separate compliance requirement from stamp duty. FIRB approval fees add further cost and the approval process must be completed before contracts are exchanged.

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How to Budget for Stamp Duty Alongside Your Deposit

Stamp duty must be funded from your own resources in most circumstances. Lenders will not include stamp duty in your mortgage. This is a critical point that first-time buyers often miss when calculating how much they need to save.

If you are purchasing a $700,000 property in Victoria as a non-first-home buyer, you need:

• A 10% deposit: $70,000
• Stamp duty (approximately): $37,000
• Conveyancing and legal fees: approximately $1,500 to $2,500
• Building and pest inspection: approximately $500 to $700
• Mortgage registration and title transfer fees: approximately $1,500
• Lender's mortgage insurance (if borrowing above 80% LVR): varies widely

Total upfront cash required before you even consider connection fees, removalists, or immediate repairs: approximately $112,000 to $115,000 on a $700,000 purchase.

If you are a first home buyer at that price in Victoria with the concession, the stamp duty component drops significantly, but it does not disappear. Even a partial concession can mean $10,000 to $20,000 in duty at $700,000.

How Lenders View Stamp Duty in Your Application

Your lender will want to see that you have genuine savings to cover stamp duty and other purchase costs, separate from your deposit. Gifted funds can be used in some circumstances, but most lenders require a minimum period of genuine savings (typically three to six months) held in your own account.

When we help buyers prepare for finance through our finance services, one of the first things we work through is the full cost stack of a purchase, not just the price. Buyers who understand the true cash required from day one are in a much stronger negotiating position than those who discover the stamp duty bill at settlement.

Timing: When Is Stamp Duty Due?

In most states, stamp duty must be paid at or before settlement. In Victoria, duty must be paid before the title can be registered, so it is effectively a condition of completing the purchase. In NSW, duty is due within three months of the contract date (or one month after the contract becomes unconditional, whichever is earlier for off-the-plan purchases).

If you are purchasing at auction, the contract is unconditional the moment the hammer falls. The duty clock starts immediately. You cannot defer payment because you are still arranging funds.

Building Stamp Duty Into Your Pre-Purchase Planning

The right time to model your stamp duty exposure is before you start inspecting properties, not after you have fallen in love with one. Knowing that a purchase at $650,000 in Victoria as a first home buyer attracts roughly $18,000 in concessional duty (versus zero at $599,000) should inform how you set your search threshold.

For buyers who want help working through these numbers in the context of a real search, our buyers advocacy and real estate services include this kind of pre-purchase financial mapping as a standard part of the process. It is the kind of detail that saves real money.

If you are also working through how much deposit you need alongside your stamp duty planning, our guide on how much deposit you need to buy a house in Australia is a useful companion resource.

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How Do You Pay Stamp Duty?

In most states, your conveyancer or solicitor handles the calculation, lodgement, and payment of stamp duty on your behalf as part of the settlement process. You provide the funds (usually as part of the settlement balance), and they remit payment to the relevant state revenue office.

In Victoria, the State Revenue Office (SRO) provides an online portal through which conveyancers lodge and pay duty electronically. The days of physically stamping documents at a government office are gone. The process is now almost entirely digital, though the obligation is just as firm.

In NSW, Revenue NSW handles collection. In Queensland, the Queensland Revenue Office (QRO) administers the process. Each state has its own portal and timeline requirements.

If you are purchasing without a conveyancer (which is unusual but not impossible in some states), you would need to self-assess and pay duty directly to the relevant revenue authority. This is not recommended. The risk of under-assessment or missing a concession that you should be entitled to is real, and errors can attract penalties and interest.

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Can You Avoid or Reduce Stamp Duty in Australia?

Avoidance in the sense of evasion is illegal and the penalties are severe. But there are legitimate strategies to minimise duty exposure:

Buy within concession thresholds. This sounds obvious but it requires discipline. If the full exemption cuts off at $600,000 in Victoria, buying at $599,000 versus $610,000 is a real financial decision, not just a preference.

Use a house-and-land package. As discussed above, duty on a house-and-land package is assessed on the land component only. At the right price point this can produce significant savings versus buying a completed home at the same total cost.

Consider off-the-plan purchases carefully. In states where the concession still applies broadly, buying off the plan can reduce dutiable value materially. Get current advice specific to the state and type of purchase.

Confirm your residency status. If you are purchasing jointly with a foreign person, the foreign buyer surcharge may apply to the entire transaction in some states. Structuring the ownership carefully before contract can matter.

Timing of first home buyer eligibility. If you have never owned property in Australia, you qualify as a first home buyer. If your partner has owned property previously (even jointly), that can affect your combined eligibility. Each state has its own rules around joint purchaser eligibility.

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Working With a Buyers Advocate and Finance Team

I started working with a developer at a Beenleigh apartment complex back in early 2021. He was sceptical. He said, "Not sure you can really do anything, but give it a go." Five years on, we have sold 12 apartments in that complex and are still going. What built that outcome was not a single tactic. It was genuinely understanding the product, knowing the body corporate inside out, walking buyers through every aspect of the purchase, and caring about what they actually needed rather than just closing a transaction. Stamp duty was part of almost every buyer conversation we had on those apartments, because many were purchasing off the plan and needed to understand exactly what they would owe and when.

That experience taught me something I apply to every buyer engagement now: the financial detail matters as much as the property itself. A buyer who understands their full cost exposure makes better decisions and fewer panicked calls at settlement.

If you are navigating a purchase in Queensland or Victoria and want to understand exactly what your stamp duty exposure looks like alongside your full buying budget, reach out to our team at George & Sons. We work through the numbers with you before you are committed to anything.

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Client Testimonial

"George & Sons walked us through every cost involved before we even started looking seriously. We had no idea stamp duty would be that significant, and knowing the numbers upfront meant we could target the right price range from day one rather than having a nasty shock at the end." , First home buyer, Brisbane, 2026

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References

1. State Revenue Office Victoria (SRO), Official source for Victorian land transfer duty rates, first home buyer exemptions, off-the-plan concessions, and foreign purchaser additional duty. The SRO website hosts the definitive duty calculator and rate schedules for 2026. (sro.vic.gov.au)

2. Revenue NSW, Official NSW Government source for transfer duty rates, first home buyer assistance scheme thresholds, the optional annual property tax scheme, and the NSW stamp duty calculator. (revenue.nsw.gov.au)

3. Queensland Revenue Office (QRO), Administers transfer duty in Queensland. Publishes rate schedules, the first home concession guide, and the QLD stamp duty calculator. (qro.qld.gov.au)

4. RevenueWA (WA Department of Finance), Official source for Western Australia's transfer duty rates and thresholds, first home buyer duty exemptions, and the foreign buyer surcharge rules. (wa.gov.au/organisation/department-of-finance/revenuewa)

5. RevenueSA, South Australia's official stamp duty administration body. Provides the SA duty calculator, rate schedule, and information on available concessions and the first home owner grant. (revenuesa.sa.gov.au)

6. Australian Bureau of Statistics (ABS), Residential Property Price Indexes, Published quarterly, provides median property price data by capital city used to contextualise stamp duty exposure at market rates. (abs.gov.au)

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