Key takeaways
- NSW transfer duty (stamp duty) is charged on the higher of the price you pay and the property’s market value, on a sliding scale indexed every 1 July.
- At the 2026-27 rates, duty on a $1 million home is $39,187; premium duty applies to homes above $3,870,000.
- Eligible first home buyers pay no duty on homes up to $800,000 (vacant land up to $350,000), and reduced duty below $1 million (below $450,000 for land).
- Foreign purchasers pay a 9% surcharge on top of transfer duty, and a first home buyer exemption doesn’t remove it.
- Duty is due within 3 months of signing the contract, or at settlement if that comes first.
NSW stamp duty, officially called transfer duty, is usually the biggest cost of buying a home after the deposit. This guide explains how it’s calculated, the current 2026-27 rates, every exemption and concession available, the foreign purchaser surcharge and when the duty is due. There’s no general stamp duty rebate in NSW: relief comes as an exemption, a concession or, for some off-the-plan buyers, more time to pay.
How NSW transfer duty is calculated
The buyer pays transfer duty; the seller doesn’t. It applies when you buy a home, an investment property, vacant land, a farm or commercial property in NSW, and also when property is transferred to you as a gift or through a change of beneficial ownership.
Duty is calculated on the dutiable value, which is the higher of the price you agreed to pay and the property’s market value. In an arm’s length sale, the price is normally accepted as the market value. When family members buy from each other, there’s no agent, or the price is non-monetary, Revenue NSW usually needs a formal valuation, and duty is charged on the market value even if you paid less.
The rates are a sliding scale, not a flat percentage. Thresholds are adjusted each year in line with CPI from 1 July, and your rate year is set by the date of your contract.
Two Revenue NSW examples of dutiable value
Paying above market value. A buyer makes a $4 million pre-auction offer on a home that comparable sales put at about $3.7 million. Duty is charged on the $4 million actually paid, which is above the premium threshold, so duty is $203,237.
Paying below market value. A parent sells vacant land worth $450,000 to their son for $300,000. Duty is charged on the $450,000 market value, so it’s $14,437 rather than the duty on $300,000, and a valuation is required.
NSW transfer duty rates for 2026-27
These general rates apply to contracts dated from 1 July 2026, according to Revenue NSW.
| Dutiable value | Duty payable |
|---|---|
| $0 to $18,000 | $1.25 for every $100 (minimum $20) |
| $18,001 to $38,000 | $225 plus $1.50 for every $100 over $18,000 |
| $38,001 to $103,000 | $525 plus $1.75 for every $100 over $38,000 |
| $103,001 to $387,000 | $1,662 plus $3.50 for every $100 over $103,000 |
| $387,001 to $1,290,000 | $11,602 plus $4.50 for every $100 over $387,000 |
| Over $1,290,000 | $52,237 plus $5.50 for every $100 over $1,290,000 |
| Premium duty: residential over $3,870,000 | $194,137 plus $7.00 for every $100 over $3,870,000 |
Here is what those rates mean across a range of prices, before any exemption or concession (the $4 million figure includes premium duty):
| Property value | Transfer duty | Effective rate |
|---|---|---|
| $600,000 | $21,187 | 3.53% |
| $800,000 | $30,187 | 3.77% |
| $1,000,000 | $39,187 | 3.92% |
| $1,200,000 | $48,187 | 4.02% |
| $1,500,000 | $63,787 | 4.25% |
| $2,000,000 | $91,287 | 4.56% |
| $4,000,000 | $203,237 | 5.08% |
Worked example: a $1.35 million house
Revenue NSW’s own example: a home bought at auction for $1,350,000 falls in the band over $1,290,000. Duty is $52,237 plus 5.5% of the $60,000 above the threshold, which is $55,537. Use our NSW transfer duty calculator for your price.
First home buyers: exemption and concession
The First Home Buyers Assistance Scheme (FHBAS) is the main duty relief for home buyers in NSW. For contracts exchanged from 1 July 2023:
- New or existing home
- No duty up to $800,000
- Home concession
- Reduced duty above $800,000 and under $1 million
- Vacant land
- No duty up to $350,000
- Land concession
- Reduced duty above $350,000 and under $450,000
You must be an individual aged 18 or over, buying the whole property, and neither you nor your spouse or partner can have owned residential property in Australia or received the exemption before. At least one buyer must be an Australian citizen or permanent resident. For a home, one of you must move in within 12 months of settlement and live there for at least 12 continuous months.
Our guide to stamp duty exemptions for first home buyers in NSW covers eligibility, the concession and how to apply, and the vacant land concession guide covers buying land to build your first home.
Not sure which concession applies to you?
Phillip can work through your duty, deposit and borrowing together, so you know the full cash you need before you make an offer.
Other NSW transfer duty exemptions and concessions
Revenue NSW lists these other exemptions and concessions. Your solicitor or conveyancer can confirm which apply and lodge the application.
Transfers between spouses and de facto partners
No duty when your spouse or de facto partner transfers an interest in your home to you, so you own it in equal shares. It covers your principal place of residence, or vacant land you intend to build it on, but not investment or holiday properties. De facto partners must have lived together for at least two continuous years.
Marriage and relationship break-ups
Transfers of matrimonial or relationship property as part of a property settlement, after the relationship has irretrievably broken down, can be exempt.
Deceased estates
If you inherit property and the executor transfers it to you under and in conformity with the will (or the intestacy rules or a court order), duty is a concessional $100. If beneficiaries vary the will, for example one buys out another, the extra share attracts normal duty.
Family farms
Transfers of land used for a genuine primary production business between family members can be exempt. Hobby farms don’t qualify.
Self-managed super funds
Moving eligible property you own into your SMSF, or a custodian’s declaration of trust when the fund borrows under a limited recourse borrowing arrangement (LRBA), can attract concessional duty of $750 instead of full duty. SMSF borrowing rules have also tightened: from 10 August 2026, a new LRBA can only be used to buy business real property, not residential property. Our SMSF loans page explains what’s still possible.
Charities and corporate reconstructions
Charitable and benevolent organisations, and some corporate group restructures, have their own exemptions and concessions.
Foreign purchaser surcharge (surcharge purchaser duty)
Foreign persons buying residential-related property in NSW pay surcharge purchaser duty on top of transfer duty. The rate has been 9% of the dutiable value since 1 January 2025 (it was 8% from 1 July 2017 to 31 December 2024), and it isn’t indexed. It is charged on the share bought by foreign persons.
You’re generally a foreign person for this purpose unless you’re an Australian citizen, a permanent resident who was in Australia for at least 200 days in the year before the purchase, an exempt permanent resident, or an eligible retirement visa holder. Companies and trusts can also be foreign.
Revenue NSW example: a $1 million home
A foreign person buying a $1,000,000 home pays $39,187 in transfer duty plus $90,000 in surcharge purchaser duty, a total of $129,187.
Qualifying for the first home buyer scheme doesn’t remove the surcharge. Revenue NSW gives the example of New Zealand citizens who meet the scheme’s rules but aren’t ordinarily resident in Australia. The main exemptions are for eligible build-to-rent developments and certain Australian-based developers, and they aren’t automatic.
When transfer duty is due and how it’s paid
You must pay transfer duty within 3 months of:
- signing the contract for sale
- the transfer date, where there is no contract, or
- the date of a deed.
Settlement can’t happen until duty is paid, so if you settle sooner, it’s due by settlement. Most Sydney purchases settle around six weeks after exchange, which is why duty is usually paid at settlement. Your solicitor or conveyancer lodges the transaction, receives the Notice of Assessment and pays the duty from the settlement funds. Revenue NSW charges interest on overdue duty until it’s paid.
Off-the-plan deferral
If you buy off the plan to live in, you may be able to defer payment for up to 12 months. Duty is then due at the earliest of 15 months after the contract, settlement, or when you assign the contract. Every buyer must be an Australian citizen, permanent resident or other eligible visa holder, and one must move in within 12 months of settlement and live there for 12 continuous months.
How to plan for transfer duty when you buy
- Price your search around duty. On the 2026-27 rates, each extra $100,000 in the $387,001 to $1,290,000 band adds $4,500 of duty.
- Check the concession thresholds. For a first home buyer, $800,000 is the line between no duty and a concession, so the price you offer matters.
- Watch your contract date. Thresholds change on 1 July, and the rates are set by the date you exchange.
- Include duty in your pre-approval. It’s part of the cash you need at settlement, alongside your deposit and costs.
For the complete buying process, see our guide to buying a house in Sydney, or how we help first home buyers.
Frequently asked questions
Not a general one. NSW reduces transfer duty through exemptions (no duty), concessions (reduced duty) and, for owner-occupiers buying off the plan, a payment deferral. The main one for buyers is the First Home Buyers Assistance Scheme. Other exemptions cover transfers between spouses, relationship break-ups, deceased estates and family farms. There is no exemption for retirees who downsize.
At the 2026-27 NSW rates, transfer duty on a $1,000,000 purchase is $39,187: $11,602 plus $4.50 for every $100 over $387,000. The first home buyer concession only applies to homes valued under $1 million, so it wouldn’t reduce duty at exactly $1 million. A foreign purchaser would also pay $90,000 in surcharge purchaser duty.
Duty is paid at settlement, and your lender looks at the total cash you need, including duty, deposit and costs. Some borrowers cover it from savings, others with equity in another property or a larger loan where the lender allows it. How it’s funded changes your loan size and possibly LMI, so plan for it when you get pre-approval.
Possibly not. NSW exempts a transfer between spouses or de facto partners of their home, or vacant land they intend to build their home on, if the couple ends up owning it in equal shares. De facto partners must have lived together for at least two continuous years before the transfer. Investment properties and holiday homes don’t qualify.
The thresholds for general transfer duty and premium duty are adjusted each year in line with the Consumer Price Index, from 1 July. The rates that apply to you depend on the date of your contract, or the date of transfer if there is no contract. The 9% surcharge purchaser duty rate is not indexed.
Sources
- Revenue NSW: How to calculate transfer duty (2026-27 rates) (opens in a new tab)
- Revenue NSW: What is transfer duty (who pays and when it’s due) (opens in a new tab)
- Revenue NSW: Transfer duty exemptions and concessions (opens in a new tab)
- Revenue NSW: First Home Buyers Assistance Scheme (opens in a new tab)
- Revenue NSW: What is surcharge purchaser duty (opens in a new tab)
- Revenue NSW: Transfer duty for off the plan property purchases (opens in a new tab)
This article is general information only and doesn't take your objectives, financial situation or needs into account. Figures and eligibility rules change; check the official sources above or talk to us before you act. Keystone Home Loans Pty Ltd ATF BEMA Family Trust, Credit Representative Number 564704 is authorised under Australian Credit Licence Number 384704.
Written by
Phillip Bui
Founder and Principal Mortgage Broker at Keystone Home Loans, based in Arncliffe, NSW. Accredited Mortgage Broker and Full Member of the Mortgage & Finance Association of Australia (MFAA).
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