What is stamp duty in NSW?
Stamp duty in New South Wales (NSW), or transfer duty, is a state government tax applied on the purchase and title transfer of land and property. Stamp duty is always paid by the buyer, not the seller.
How much is stamp duty in NSW?
Stamp duty in NSW is calculated on a sliding scale according to your property value. A standard transfer duty rate applies to residential properties up to $1,168,000 but below $3 million. There’s a premium duty rate for properties worth over $3 million. First-home buyers can get a stamp duty exemption under the First-Home Buyers Assistance Scheme.
Stamp duty costs in NSW will vary depending on:
- The property's value
- The type of property you purchase (e.g. house, vacant land, off-the-plan)
- Your residency status
- Your eligibility as a first-home buyer
- Your eligibility for pensioner concessions
General stamp duty rates in NSW
| Property value | Standard stamp duty payable |
|---|---|
$0 - $16,000 | $1.25 for every $100 (minimum $10) |
$16,000 - $35,000 | $200, plus $1.50 for every $100 over $16,000 |
$35,000 - $93,000 | $485, plus $1.75 for every $100 over $35,000 |
$93,000 - $351,000 | $1,500, plus $3.50 for every $100 over $93,000 |
$351,000 - $1,168,000 | $10,530, plus $4.50 for every $100 over $351,000 |
$1,168,001 | $47,295, plus $5.50 for every $100 over $1,168,000 |
In NSW, properties valued over $3 million are subject to a premium stamp duty. The maximum duty payable is $175,830, plus an additional $7.00 for every $100 over $3,505,000 (for properties exceeding $3,505,000).
$500,000 vs $750,000 property stamp duty example calculation in NSW
| Property price | Owner-occupier stamp duty | Investment stamp duty |
|---|---|---|
$500,000 | $17,932 | $17,932 |
$750,000 | $29,182 | $29,182 |
Generally, first-home buyers of properties valued under $1 million pay a reduced stamp duty rate in New South Wales.
First-home buyer stamp duty rates in NSW
| Property value | General stamp duty | Duty after concession |
|---|---|---|
$650,000 | $23,985 | $0 |
$750,000 | $28,485 | $0 |
$800,000 | $30,735 | $0 |
$850,000 | $32,985 | $9,934 |
$900,000 | $35,235 | $19,868 |
$950,000 | $37,485 | $29,801 |
$990,000 | $39,285 | $37,748 |
Who pays stamp duty in NSW?
Anyone buying property in NSW or acquiring real estate under a company or trust must pay stamp duty. This also includes properties gifted (unless an exemption applies). It’s important to note that stamp duty is an additional cost to your deposit and property price.
If you're buying a property in NSW, your conveyancer may take care of the paperwork and lodge the payment with the revenue office on your behalf. Be sure to budget for stamp duty or ask your lender to increase the principal amount of your home loan to account for stamp duty. This will increase your home loan repayments.
When is stamp duty in NSW payable?
In NSW, stamp duty is payable within 90 days of settlement. You can defer your transfer duty liability for up to 12 months if you buy off-the-plan and intend to live in the property.
How do you pay stamp duty in NSW?
Stamp duty can be paid by direct deposit, cheque, credit card, and other major payment options. In most cases, you'll receive a notice from the Land Registry Service (LRS) or Revenue NSW delivered to the address of the purchased property or by email. This letter will often contain:
- The amount of stamp duty payable
- Details on the tax and how it was calculated
- Concessions or exemptions included in the calculation
- Payment options
- Payment due date
- Information regarding late payments and associated penalties or charges
- Reference details for the notice and payment
What are the stamp duty exemptions in NSW?
There are a few stamp duty exemptions and concessions available in New South Wales, including:
- First-Home Buyers Assistance Scheme: Full stamp duty exemption applies for first homes valued under $800,000 and vacant land under $350,000. Concession rates apply thereafter. There’s also a $10,000 first-home buyer grant in NSW that may help further reduce the cost of buying a home.
- Spouse or partner exemption: Transfers of a principal place of residence between a married couple or de facto partners are exempt from stamp duty.
- Deceased estate exemption: Exemptions apply for transfers of primary residence under the provisions of a will or rules of intestacy (if there’s no will).
- Family farm exemption: Exemptions apply on transfers of farming land to family members or relatives.
- Pensioner concession: Eligible pensioners and concession cardholders may pay a reduced transfer duty when purchasing a home.
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