Stamp Duty Exemptions for First Home Buyers in NSW [2026 Guide]

How the First Home Buyers Assistance Scheme works

Transfer duty is a NSW tax on buying property, charged on a sliding scale. It’s calculated on the dutiable value, which is the higher of the price you pay and the property’s market value. Under FHBAS, eligible first home buyers get a full exemption or a concessional rate, depending on that value. These thresholds apply to contracts exchanged on or after 1 July 2023 and are still current in September 2026.

Full exemption (homes)

Value up to $800,000

Reduced rate (homes)

Above $800,000 and below $1 million

Vacant land

Exempt up to $350,000, reduced rate below $450,000

Living rule

Move in within 12 months, stay 12 continuous months

The scheme covers established homes as well as new ones, which is the big difference from the $10,000 First Home Owner Grant, which is only for new homes.

How much stamp duty first home buyers pay in 2026

The table uses the transfer duty rates for contracts exchanged from 1 July 2026 to 30 June 2027. Revenue NSW adjusts the rate bands every financial year in line with inflation, but the first home buyer thresholds of $800,000 and $1 million haven’t changed since 1 July 2023.

Above $800,000 the reduced amount climbs steadily, by about $1,959 for every $10,000 of value, until it meets full duty at $1 million. So the concession is worth most just over $800,000 and very little near $1 million. Estimate your own figure with our NSW transfer duty calculator or the Revenue NSW first home buyer calculator (opens in a new tab).

Who is eligible for the first home buyer duty exemption

• You’re buying a new or existing home, or vacant land, in NSW, and the value is within the thresholds.
• The transfer is for the whole property (see the shared equity rule below if you’re buying with others).
• You’re buying as an individual, not a company or trust, and you’re over 18. Revenue NSW may waive these two on application.
• You and your spouse or partner have never owned or co-owned residential property in Australia.
• Neither of you has received an exemption or concession under the scheme before.
• At least one of the first home buyers is an Australian citizen or permanent resident.
• For a home, you’ll meet the residence requirement.

The ownership test covers your spouse or de facto partner as well as you, so a partner who has owned property can make you ineligible. A spouse is someone you’re married to or living with in a de facto relationship. If you’re married but separated, and you don’t live together or intend to, you aren’t treated as having a spouse.

The residence requirement

For contracts exchanged on or after 1 July 2023, you or one of the other eligible first home buyers must:

• move into the home within 12 months after settlement, and
• live in it as your principal place of residence for at least 12 continuous months.

Permanent members of the Australian Defence Force don’t have to meet this requirement if, at exchange, they and everyone they’re buying with are on the NSW electoral roll.

Revenue NSW regularly checks applications against data from other government agencies and businesses, and there are substantial penalties for false or misleading information. Keep your address up to date on the electoral roll, your driver licence and your bills once you move in.

Buying with someone who isn’t a first home buyer

You can still use the scheme when you buy with someone who isn’t eligible, as long as you and any other eligible buyers are purchasing at least half of the property. Revenue NSW calls this a shared equity arrangement. The ineligible buyers pay transfer duty on the share they’re acquiring.

This doesn’t work if the ineligible buyer is your spouse. Our blog on buying property with family covers ownership structures and agreements.

Foreign buyers and surcharge purchaser duty

Being eligible for the first home buyer scheme doesn’t exempt a foreign person from surcharge purchaser duty. It’s a flat 9% of the dutiable value, charged on the share bought by the foreign person, on top of any transfer duty. Revenue NSW gives the example of New Zealand citizens and permanent residents, who can be eligible for the scheme but still liable for the surcharge if they aren’t ordinarily resident in Australia. If anyone in your purchase lives overseas or holds a temporary visa, check this before you exchange.

New homes, off-the-plan and vacant land

For the scheme, a new home is one that hasn’t been occupied or sold as a residence before, including a substantially renovated home or one built to replace a demolished home. If it’s priced up to $600,000, you may also get the $10,000 First Home Owner Grant on top of the duty exemption.

Buying off the plan, you may be able to defer paying transfer duty by an additional 12 months. That’s a deferral only; the amount doesn’t change, but it can help if you’re paying a concessional amount.

Vacant land has its own thresholds (exempt up to $350,000, reduced rate below $450,000) and its own rules about building and moving in. Our blog on the first home buyer vacant land concession explains them.

Mistakes that cost first home buyers their exemption

• Exchanging at $1 million or more. There’s no partial relief at or above $1 million: the whole concession disappears.
• Overlooking a partner’s past ownership. If your spouse or de facto partner has owned residential property in Australia, you can’t use the scheme, even if they’re not on the new title.
• Buying from family below market value. Duty is worked out on the higher of the price and the market value, so a discounted price doesn’t get a more expensive home under the threshold.
• Renting the home out in the first year. Leaving before 12 continuous months makes the duty payable, with interest and penalties if you don’t tell Revenue NSW.
• Leaving the paperwork late. Give the form to your conveyancer soon after exchange, not in settlement week.

More pitfalls across the whole purchase are in our guide to 13 mistakes first home buyers make in NSW.

How to apply and when duty is due

1. 1

   Exchange contracts

   Your eligibility is assessed on the contract date, so check the thresholds and the rules before you exchange.

2. 2

   Complete the application

   For contracts exchanged on or after 1 July 2023, use form ODA 066B. It has declaration tick boxes in place of a statutory declaration.

3. 3

   Give it to your conveyancer

   Lodge the form and your proof of identity documents with your solicitor or conveyancer, who submits them with the duty assessment.

4. 4

   Pay any duty by the due date

   If you’re paying a concessional amount, it’s due within three months of the contract date, or at settlement if that comes first.

For transfer duty rules that apply to every buyer, including the full rate table and other exemptions, read our NSW stamp duty guide. To see how the duty exemption fits with the grant and the federal deposit schemes, see our guide to first home buyer assistance. And when you’re ready, our first home buyers page shows how we help.

Frequently asked questions

Do first home buyers pay stamp duty in NSW?

Not if they’re eligible for the First Home Buyers Assistance Scheme and the home is valued at $800,000 or less. Between $800,000 and $1 million they pay a reduced amount that rises with the price. At $1 million or more there’s no first home buyer relief, and standard transfer duty applies: $39,187 on a $1 million home under the rates for contracts exchanged from 1 July 2026.

Can I get the first home buyer duty exemption if I’ve owned property overseas?

The ownership test is about residential property in Australia: you and your spouse or partner must never have owned or co-owned residential property here. Owning a home overseas doesn’t, on that wording, rule you out. You still need at least one buyer who is an Australian citizen or permanent resident, and if a buyer is a foreign person, surcharge purchaser duty may apply.

Can I rent out my first home after using the exemption?

Only once you’ve met the residence requirement. For contracts exchanged on or after 1 July 2023, you must move in within 12 months of settlement and live there as your principal place of residence for at least 12 continuous months. If you rent it out before then, you’re no longer eligible and must tell Revenue NSW so the correct duty can be paid.

Does the exemption apply to an investment property?

No. For homes, the scheme requires you or another eligible buyer to live in the property for at least 12 continuous months, so a purchase you plan to rent out from the start doesn’t qualify. Vacant land bought to build on has its own rules. Investors pay standard transfer duty, calculated on the higher of the price and the market value.

When do I apply for the first home buyer exemption?

After you exchange contracts. You complete the First Home Buyers Assistance Scheme application (form ODA 066B for contracts exchanged on or after 1 July 2023) and give it, with your proof of identity documents, to your solicitor or conveyancer. They lodge it with the duty assessment. Any duty that’s still payable is due within three months of the contract date or at settlement, whichever is earlier.

Sources

1. Revenue NSW: First Home Buyers Assistance Scheme (opens in a new tab)
2. NSW Government: First Home Buyers Assistance Scheme (2026–27 reduced rates) (opens in a new tab)
3. Revenue NSW: How to calculate transfer duty (2026–27 rates) (opens in a new tab)
4. Revenue NSW: Who pays transfer duty and when (opens in a new tab)
5. Revenue NSW: First Home Owner (New Homes) Grant (opens in a new tab)