First Home Buyer Stamp Duty Guide — NSW

Stamp duty is one of those costs that tends to catch people off guard. You've done the maths on your deposit, worked out your repayments — and then someone mentions stamp duty and the numbers shift again. It's frustrating, but it's also a lot more manageable once you understand how it actually works.

The good news for first home buyers in NSW is that there are meaningful exemptions on offer. Depending on what you're buying, you might pay nothing at all.

What is stamp duty?

Stamp duty — formally called transfer duty in NSW — is a state government tax you pay when you buy a property. It's not calculated on your loan amount; it's calculated on the purchase price of the property (or its market value, whichever is higher).

It's one of the biggest upfront costs in a property purchase, sitting alongside your deposit, conveyancing fees, and inspection costs. Unlike your deposit, stamp duty can't usually be rolled into your loan — it needs to come out of your own funds at settlement.

Revenue NSW administers transfer duty in the state. The rates and thresholds are set by the NSW government and updated from time to time, so it's always worth checking the Revenue NSW website for the current figures alongside any calculator you use.

NSW stamp duty rates (2025-26)

Transfer duty is calculated on a sliding scale — different portions of the property price attract different rates. Here's the bracket structure for the 2025-26 financial year:

Property price range	Base amount	Rate on excess
$0 – $17,000	$0	1.25%
$17,001 – $36,000	$212	1.50%
$36,001 – $97,000	$497	1.75%
$97,001 – $364,000	$1,564	3.50%
$364,001 – $1,212,000	$10,909	4.50%
$1,212,001 – $3,636,000	$49,069	5.50%
Over $3,636,000	$182,369	7.00%

To work out the duty on a specific price, you find the bracket the purchase price falls into, take the base amount for that bracket, then add the applicable rate on the amount exceeding the lower bound.

Three quick examples to make it concrete:

• $500,000: Base of $10,909 (the $364,001–$1,212,000 bracket) + 4.50% of $136,000 = $17,029
• $750,000: $10,909 + 4.50% of $386,000 = $28,279
• $1,000,000: $10,909 + 4.50% of $636,000 = $39,529

These are the general rates — before any first home buyer concession is applied.

First home buyer exemptions and concessions

NSW offers a genuine concession for eligible first home buyers. It applies to both new and existing homes, and the threshold is set at $1,000,000.

Here's how it works:

• Under $800,000 — full exemption. No stamp duty at all.
• $800,001 to $999,999 — a sliding concession. You pay a portion of the full duty, scaling up as the price approaches $1,000,000. The formula is: full duty × (price − $800,000) ÷ $200,000.
• $1,000,000 and over — full duty applies. No concession.

To illustrate the concession in practice:

• $700,000 — eligible first home buyer pays $0
• $900,000 — full duty would be $32,254. The concession factor is ($900,000 − $800,000) ÷ $200,000 = 0.50. So you pay 50% of the full duty: approximately $16,127
• $1,050,000 — full duty applies, no concession. Approximately $42,009

To be eligible, the property generally needs to be your principal place of residence — not an investment. There are also residency and prior ownership requirements, which Revenue NSW outlines on their website.

How to calculate your stamp duty

The bracket maths is straightforward once you get the hang of it, but it's easy to make a mistake — especially when the concession is involved. Use our free stamp duty calculator to see your exact figure.

Enter your purchase price, select "First Home Buyer" as your buyer type, and it calculates the result using the official Revenue NSW bracket rates — including the sliding concession for prices between $800,000 and $1,000,000. It takes about ten seconds.

The calculator also shows the full picture of what you'll need at settlement: stamp duty, conveyancing, government fees, LMI if applicable, and your total cash required on the day.

When do you pay stamp duty?

Stamp duty is due at settlement. It's not a separate event — your conveyancer or solicitor handles it as part of the settlement process. It comes out of your settlement funds on the day, alongside any other amounts owing.

In NSW, stamp duty is lodged and paid electronically through Revenue NSW's eSDRO system. Your conveyancer manages this on your behalf — you don't need to interact with the system directly. But you do need the funds ready.

The timing matters for your cash flow planning. You've usually got a few weeks between exchange and settlement, but that's not the time to be scrambling for funds. Make sure stamp duty is sitting in your account well before the settlement date.

Other upfront costs to budget for

Stamp duty is often the biggest upfront cost, but it's not the only one. When you're putting together your full budget, it's worth accounting for:

• Lenders Mortgage Insurance (LMI) — if your deposit is less than 20% of the purchase price, most lenders will require LMI. It can run to thousands or tens of thousands of dollars depending on your loan size and LVR.
• Conveyancing or solicitor fees — typically around $1,200–$2,000 for a standard residential purchase, though complex transactions can run higher.
• Government fees — mortgage registration and transfer fees from Land Registry Services, usually around $400 combined.
• Building and pest inspection — around $500–$800 for a standard house. Worth every cent before you exchange.

Run your full numbers through the calculator to see everything in one place — it's designed to show the complete settlement figure so there are no surprises on the day.

Frequently asked questions

Can I add stamp duty to my home loan?

Generally no. Stamp duty is due at settlement and most lenders require it to be paid from your own funds — it can't be capitalised into your loan amount. A small number of lenders may allow stamp duty to be included, but this increases your loan balance and, if it takes you above 80% LVR, may also trigger LMI. It's worth confirming this with your lender before relying on it.

Is stamp duty calculated on the purchase price or the market value?

In most cases, it's calculated on the purchase price — the amount stated in your contract. However, if Revenue NSW determines that the purchase price is significantly below market value (for example, in an off-market transaction between related parties), duty may be assessed on the market value instead.

Do I pay stamp duty on a house and land package?

Yes, but how it's assessed may differ from a standard established-home purchase. In some cases, the land and construction contracts are treated separately — duty applies to the land at the time of purchase, and the construction contract may be assessed differently. The exact treatment depends on how the transaction is structured. Your conveyancer can advise based on your specific contract.

Can I get a refund if the sale falls through?

Potentially. If stamp duty was paid before the contract fell through — for example, if settlement didn't proceed — a refund or reassessment may be available. Contact Revenue NSW directly to understand what applies in your specific situation. Timeframes and eligibility conditions do apply.

Does the First Home Buyer concession apply to investment properties?

No. The NSW first home buyer exemption and concession require the property to be your principal place of residence. If you're buying a property to rent out — even as your first property purchase — the concession doesn't apply and full transfer duty is payable.