What Is Stamp Duty? How Much to Pay, Exemptions, and More!

Stamp Duty is a government-imposed tax charged on property transactions, with the amount varying widely depending on where you buy and what you’re buying.

Like the Lenders Mortgage Insurance (LMI), stamp duty is also one of the biggest upfront expenses you’ll face when purchasing a property, making it vital to understand for accurate budgeting.

In this guide, we’re taking a deep dive into stamp duty, helping you understand:

• What it means.

• How it’s calculated.

• The rate depending on specific circumstances.

• How much you’d have to pay.

• And any potential exemptions you can make use of.

So, What Is Stamp Duty?

Stamp duty (also known as transfer duty) is a state and territory tax applied to certain transactions, mainly involving the purchase of homes, lands, or investment properties. 

It’s a one-off fee calculated as a percentage of the property’s purchase price or market value (whichever is higher).

Why should you pay it in the first place? Because stamp duty acts as a transaction tax on property sales, helping to regulate the real estate market and fund state government services (roads, schools, hospitals, etc.).

Who Should Pay the Stamp Duty?

The buyer (transferee) of the property is responsible for paying stamp duty. Whether you're purchasing through a private sale or an auction, the obligation remains the same.

When Is Stamp Duty Payable?

Stamp duty is usually payable within 30 days of settlement, although deadlines vary slightly depending on the state or territory. The payment method is usually through bank transfer or solicitor/lender assistance.

Failing to pay on time can lead to penalties or interest charges (e.g., +5% interest in NSW), so it's important to factor this cost into your budget from the start.

Keep in mind that stamp duty is an upfront cost, so you cannot directly add it to your mortgage. However, some lenders can increase the mortgage amount to cover the stamp duty for you (as long as the total loan-to-value ratio (LVR) remains within the lender’s limits), which is an indirect method many Aussies take. 

But again, that means you’d have to pay interest on it for the life of the loan!

If you are looking to add stamp duty to your mortgage, make sure the extra repayments end up affordable for you. It’s good to know what percentage of your income should be your mortgage to keep things easy and stress-free.

How Is Stamp Duty Calculated?

Stamp duty is not a flat rate. It’s calculated on a sliding scale or based on set thresholds, meaning the more expensive the property, the higher the duty. 

It is not a one-size-fits-all tax, either. The amount owed varies, depending on multiple factors, including:

• Location of the property (each state and territory has different rates).

• Purchase price of the property.

• Type of buyer (first-time buyer, investor, company, etc.).

• Type and use of property (residential, investment, commercial, vacant land, etc.).

• Buyer’s residency status (foreign buyers often pay a surcharge).

• Whether the property is newly built or existing.

Each state and territory sets its own rates, meaning costs vary significantly across Australia, though they are commonly in the tens of thousands of dollars.

Here’s an example for a $750,000 property in NSW:

• Buyer: Owner-occupier (not first home buyer)

• Stamp Duty: Approx. $29,240

For an investment property of the same value, additional land tax may apply, depending on usage.

You can use your state’s online stamp duty calculator to estimate the amount, factoring in property type, buyer status, and location. For example, the NSW Revenue Calculator is useful if you're buying in New South Wales.

Stamp Duty Rates, Exemptions, and Other Related Perks Across Australia (2025)

The stamp duty rates vary by state or territory. Plus, there are other influencing factors involved as well.

For this guide, we’re listing down the base stamp duty rates applicable on residential properties for an Australian citizen or resident.

And based on your state, you might even get stamp duty exemptions and extra perks, subject to eligibility.

New South Wales (NSW) Stamp Duty

What you’ll pay :

• $0–$17,000 : $1.25 per $100

• $17,001–$372,000 : 1.25%–4.5%

• Over $1.24M : $50,212 + 5.5%

A standard transfer duty rate, as well as a premium duty rate is applied for residential properties worth more than $3 million.

First home buyer advantages:

• Full exemption for properties up to $800,000.

• Partial concessions available up to $1 million.

Victoria (VIC) Stamp Duty

What you’ll pay:

• $0–$130K: ~2.4%

• $130K–$960K: 6%

• Over $960K: 5.5%

The rate reduces slightly to 5.5% up to $2 million, then increases to 6.5%.

First home buyer advantages:

• No stamp duty payable on homes up to $600,000.

• Reduced rates available up to $750,000.

• Additional concessions may apply for off-the-plan purchases.

Queensland (QLD) Stamp Duty

What you’ll pay:

• Tiered rates: $1.50–$5.75 per $100 (depending on property value).

A $500,000 property would typically incur about $15,925 in duty.

First home buyer advantages:

• Significant savings available for properties under $700,000 (must occupy the property as your principal residence for at least 12 months).

Western Australia (WA) Stamp Duty

What you’ll pay:

• Under $360K: Lower rates

• Over $360K: $11,115 + 5.15% 

First home buyer advantages:

• Complete exemption for homes up to $450,000.

• Partial concessions up to $600,000.

South Australia (SA) Stamp Duty

What you’ll pay:

• Up to 5.5% (based on property value).

First home buyers advantages:

• Full exemption on new homes up to $650,000.

• Partial discounts available up to $700,000.

• Additional $15,000 First Home Buyer Grant for new construction.

Tasmania (TAS) Stamp Duty

What you’ll pay:

• Up to 4.5% of property value.

First home buyer advantages:

• Until June 2026, first-home buyers get 100% exemption on properties up to $750,000.

Australian Capital Territory (ACT) Stamp Duty

What you’ll pay:

• Progressive rates: $0–$4.54 per $100.

First-home buyer advantages:

• Full exemption for first-home buyers within a certain income threshold (12-month occupancy requirement applies).

Northern Territory (NT) Stamp Duty

What you’ll pay:

• Formula-based (~$23,928 for $500K).

First-home buyer advantages:

• While no stamp duty exemptions exist, first-home buyers can access a $10,000 grant for new builds. 

For the most accurate calculations, we recommend using each state's official stamp duty calculator or consulting with a mortgage specialist who can provide personalised guidance based on your situation.

Stamp Duty & Type of Property

One of the few influencing factors of stamp duty in Australia is the type of the property involved in the transaction. In essence, the stamp duty you are required to pay would be either low or high, depending on the type/use of property you intend to purchase.

Stamp Duty on Residential Property

For residential properties, stamp duty is generally calculated at standard rates set by each state or territory. 

However, if you’re buying your first home or intend to live in the property as your principal place of residence, you may be eligible for generous concessions or full exemptions. 

You’ll typically need to live in the property for a minimum period (usually 6-12 months) to qualify for these discounts.

Stamp Duty on Investment Property

If you’re purchasing a property purely for rental income or long-term capital gain (one you don’t intend to live in), you typically won’t qualify for any exemptions or discounts. 

In fact, some states may apply a slightly higher stamp duty for investment properties, and unlike residential buyers, investors don’t benefit from first-home schemes. 

That said, investors can sometimes claim stamp duty as part of the cost base when calculating Capital Gains Tax (CGT) later down the track. 

You may also be able to claim some related expenses (though not the stamp duty itself) as deductions over time. However, tax laws are complex and subject to change. 

It’s worth discussing this with a tax professional or accountant.

Stamp Duty on Commercial Property

Stamp duty on business properties, including offices, retail shops, and warehouses, are calculated differently again. 

These transactions attract standard or commercial-specific stamp duty rates, which are often higher than those for residential properties. 

Additionally, GST may also apply on the sale of commercial properties, making the upfront costs even steeper. 

Some states may offer concessional rates or exemptions for certain types of commercial purchases, like those related to small business development or regional investments.

Stamp duty on Land

If you’re purchasing vacant land, stamp duty is still payable. In most cases, it’s based on the value of the land at the time of purchase. 

However, if the land is intended for building your first home, you may still be eligible for stamp duty concessions in some states. 

For instance, in Western Australia, first-home buyers can receive exemptions on land purchases under $450,000. But if the land is being bought as an investment or for future development without a primary residence in mind, expect to pay the full rate with no discounts.

Stamp Duty for Foreign Buyers

Buyer’s residency status is another influencing factor. If you're a foreign buyer looking to invest in Australian property, it’s important to know that you’ll be paying more in stamp duty than local buyers. 

In addition to the standard transfer duty, most states and territories apply a Foreign Buyer Surcharge, which is an extra percentage added to your purchase price. These surcharges vary depending on where you buy, but typically range from 7 to 8%.

Note:  You are not a foreign buyer if you are an Australian citizen or an Australian permanent resident, even if you reside overseas. This means even if you’re living in another country, you won’t have to pay foreign buyer stamp duty as long as you are an Australian citizen or permanent resident.

Can You Avoid Paying Stamp Duty?

Though avoid might be a strong word, you can legally reduce or eliminate stamp duty costs through some common stamp duty exemptions or reductions like:

• First home buyer concessions: Most states offer full exemptions or discounts if you are an Australian citizen/permanent resident, have never owned property before, and have occupied the home for at least 12 months.

• Off-the-plan concessions: In some states, if you buy a new property before construction is completed.

• Spouse transfers: You may not have to pay stamp duty when transferring a property to a spouse or partner, especially if it's your principal home.

• Deceased estate transfers: Some transfers of property due to inheritance are eligible for stamp duty exemption.

• Family farm exemptions: These apply in rural areas for intergenerational transfers of farmland.

This article contains general information only and is not financial, tax, or legal advice. Kindly consider your own objectives, financial situation, and needs, and seek professional advice before acting on any of the information.

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