Real Estate · Australia

Stamp Duty by State: The $20k–$40k Line on Your Settlement

Transfer duty (stamp duty) is the largest single transaction cost in Australian property — and because each state and territory sets its own scales and concessions, the same $800,000 purchase can cost roughly $20,000 in one state and over $40,000 in another. It's paid in cash at or shortly after settlement and can't be rolled into most loans.

Ballpark duty on a typical home

State	Indicative duty (~$800k established home, non-first-home buyer)
NSW	~$31,000
Victoria	~$43,000 — the steepest scale at this price
Queensland	~$21,000 with the home concession
Western Australia	~$35,000
South Australia	~$37,000
ACT	Lower — duty being phased down under tax reform

Treat these as order-of-magnitude figures: every revenue office publishes an official calculator, scales change at state budgets, and foreign-buyer surcharges (7–8% extra in most states) sit on top where they apply.

First home buyer concessions — the big lever

• NSW: full exemption up to $800,000, concessional rates to $1,000,000 (First Home Buyers Assistance Scheme) — up to ~$31k saved.
• Victoria: exemption up to $600,000, sliding concession to $750,000.
• Queensland: first home concession thresholds lifted to $700,000 (phasing out to $800,000) from mid-2024; new builds treated more generously.
• WA, SA, ACT, TAS, NT: all run their own exemptions or concessions — typically tied to price caps and a 6–12 month live-in requirement.
• Caps bind on the contract price: paying $805,000 instead of $800,000 in NSW as a first-timer doesn't cost $5,000 — it can cost over $30,000 once duty switches on. Negotiate with the threshold in view.

Why the state you buy in matters more than almost anything else

Stamp duty is the single largest entry cost of buying in Australia, it is set entirely by each state and territory, and the spread between them is enormous. On the same purchase price the duty can differ by tens of thousands of dollars depending only on which side of a border the property sits.

It is also payable in cash at settlement and cannot be added to the loan, which is why it — rather than the deposit alone — is what most often delays a purchase.

First home buyer concessions by approach

The states have diverged sharply in how they treat first home buyers:

• ACT — from 1 July 2026, eligible first home buyers pay no stamp duty at any price. The most generous regime in the country.
• Queensland and South Australia — duty waived on new homes with no price cap, which steers buyers toward new build rather than established stock.
• NSW, Victoria, WA and Tasmania — full exemption below a threshold, then a tapering concession above it. The thresholds move regularly, so check the current figure rather than a guide.
• Northern Territory — offers a substantial grant instead of duty relief.

The costs that sit alongside it

• Transfer and registration fees — a few hundred dollars, separate from duty.
• Mortgage registration — a small fixed fee in most states.
• Foreign buyer surcharge — an additional duty, typically 7-8%, in most states for non-residents.
• Lenders Mortgage Insurance — not duty, but frequently the larger number if your deposit is under 20%. The federal 5% Deposit Scheme removes it for eligible first home buyers.

Because concessions, thresholds and surcharges all change at state budgets, the only reliable figure is the one from your own state revenue office on the day you buy.

Frequently asked questions

How much is stamp duty in Australia?
It is set by each state and territory rather than federally, and typically runs 3-6% of the purchase price on a sliding scale. Government transaction costs together commonly reach 4.5-5.5% of the price, which makes duty the largest single cost of buying after the deposit.

Do first home buyers pay stamp duty?
Every state and territory offers first home buyer concessions or exemptions, but the thresholds and conditions differ substantially — and in the most expensive markets the concession cuts out below the median house price, so many first buyers pay in full.

Can stamp duty be added to the mortgage?
Generally no. It is payable in cash at settlement and sits on top of the deposit, which is why the cash required to buy is considerably more than the deposit figure suggests.

Is stamp duty being replaced?
Some jurisdictions have introduced or trialled an annual land tax as an alternative to a one-off duty, on the argument that duty penalises moving. Where a choice exists, it turns on how long you expect to hold the property — the annual option favours shorter holds.

For an investment purchase, duty is now only part of the picture: negative gearing and the CGT discount both change from July 2027.

Sources

• Revenue NSW — transfer duty rates; First Home Buyers Assistance Scheme thresholds
• State Revenue Office Victoria — land transfer duty rates and first home buyer exemption
• Queensland Revenue Office — transfer duty estimator and first home concession; WA/SA/ACT revenue offices

Indicative figures as of June 2026 — scales and concession thresholds change at state budgets; always run your state revenue office's official calculator. This is general information, not financial advice (ASIC RG 244).