Stamp Duty (Transfer Duty)
A state/territory tax on property purchases, calculated as a percentage of the property value — rates vary by jurisdiction.
Stamp duty (also called transfer duty) is a state or territory government tax charged when you purchase or transfer property. It is typically one of the largest upfront costs of buying a home, calculated as a percentage of the property's purchase price or market value (whichever is higher). Rates vary significantly between states and territories, and most jurisdictions use a progressive scale where higher-value properties attract higher rates.
For example, in New South Wales, stamp duty on a $800,000 property is approximately $30,187 for a general purchaser. First home buyers may be eligible for exemptions or concessions — NSW offers a full exemption for first homes up to $800,000 and a concessional rate for homes between $800,000 and $1,000,000. Victoria, Queensland, and other states have their own thresholds and concession schemes.
Stamp duty is a one-off payment made at settlement (or within a specified period after). Unlike council rates or land tax, it's not an ongoing cost. Some states (notably NSW and Victoria) have considered or implemented alternatives — NSW briefly offered first home buyers a choice between stamp duty and an annual land tax for properties up to $1.5 million, while the ACT has been gradually phasing out stamp duty in favour of higher annual rates. For investment properties, stamp duty is added to the cost base for CGT purposes.
How it works
Stamp duty is charged by state and territory governments on property purchases, calculated as a percentage of the purchase price or market value, whichever is higher, and most jurisdictions apply it on a progressive scale so higher-value properties pay a larger proportional amount. It's a one-off cost tied to the transaction itself, separate from any recurring tax like council rates or land tax.
In practice, it's one of the biggest upfront costs of buying a home, due at or shortly after settlement alongside your deposit and other purchase costs — it needs to be budgeted for before you can even complete the purchase. Many states offer exemptions or concessions for first home buyers under a value threshold, though the specific thresholds and concession structures differ from state to state.
Because it's state-based, the exact amount and any available concessions depend entirely on which jurisdiction the property is in — there's no single national rule. Some states have experimented with alternatives: the ACT has been gradually phasing out stamp duty in favour of higher ongoing rates, and NSW briefly let first home buyers choose between paying stamp duty upfront or an annual land tax instead, for properties up to $1.5 million. For an investment property, stamp duty gets added to the cost base for CGT purposes rather than being an immediate deduction.
Example: stamp duty on an $800,000 NSW property
A general (non-first-home-buyer) purchaser buying an $800,000 property in NSW pays stamp duty of roughly $30,187 — about 3.8% of the purchase price — payable at or shortly after settlement, on top of the deposit and other purchase costs.
A first home buyer purchasing the same $800,000 property in NSW, by contrast, may qualify for a full stamp duty exemption under that state's first-home-buyer scheme, paying nothing at all on the same purchase price purely because of their buyer category.
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First Home Super Saver (FHSS)
A scheme allowing first home buyers to save for a deposit inside super, benefiting from lower super tax rates on contributions.
First Home Owner Grant (FHOG)
A state/territory government grant for first home buyers, typically $10,000–$30,000 for new homes, with varying eligibility criteria.
Land Tax
An annual state/territory tax on the value of land you own, excluding your principal place of residence in most states.
Principal Place of Residence (PPOR)
Your main home, which is generally exempt from capital gains tax when sold.
Cost Base
The total cost of acquiring and holding an asset, used to calculate the capital gain or loss on disposal.