After the deposit, it is the biggest upfront cost most buyers face, and it is calculated eight different ways. What you pay on the same home can swing by tens of thousands of dollars depending only on which state it sits in.
After the deposit, stamp duty is usually the largest single cost of buying a home, and one of the least understood. There is no national stamp duty. Each state and territory runs its own version, with its own rates, concessions and exemptions, which is why two buyers paying the same price for near-identical homes can face very different bills. Here is how the tax is calculated, and where the differences come from.
What stamp duty actually is
Stamp duty, more properly called transfer or conveyance duty, is a one-off tax a state or territory charges when property changes hands. It is worked out on the dutiable value of the property, usually the purchase price or the market value, whichever is higher.
The rate is not flat. Every state uses a progressive sliding scale, so higher-value properties are taxed at higher marginal rates on the portion above each threshold. Victoria, for example, runs rates from 1.4% at the bottom of the scale up to a top rate of 6.5% on the value above $2 million.
The other states each set their own brackets, but the shape is the same: the more the property is worth, the higher the effective rate.
Why the bill differs so much by state
Because every jurisdiction sets its own scale and its own relief, the duty on the same purchase price can vary widely across the country. A first-home buyer paying $650,000 might owe nothing in one state and several thousand dollars in another, purely because of where the line for concessions falls.
It is also why a stamp duty figure from a national headline, or one a chatbot hands you, is close to meaningless. The only number that matters is the one your state's scale produces for your price and your circumstances.
First-home buyer relief varies widely
The biggest differences show up in first-home buyer concessions.
In Victoria, first-home buyers pay no duty on a home valued up to $600,000, with a tapering concession between $600,001 and $750,000 and nothing above that.
In Queensland, an eligible first-home buyer building or buying a new home pays no transfer duty at all, with no price cap, while an existing home is duty-free up to $700,000, reduced to just under $800,000, then charged at home-concession rates.
In New South Wales, first-home buyers pay no duty on a home valued up to $800,000, with a concessional rate between $800,000 and $1 million, and the same thresholds apply to new and existing homes.
Thresholds move with budgets and policy, so treat the figures above as a guide, not a guarantee. Before you rely on any of them, confirm the current settings with your state or territory revenue office.
The ACT is phasing stamp duty out altogether
One territory is leaving the model behind. The ACT began a 20-year program in 2012 to shift away from stamp duty towards broad-based land tax and higher general rates, a program the Territory schedules through to 2031-32.
t has moved faster than that for first home buyers: from 1 July 2026 the Home Buyer Concession Scheme dropped both its property value cap and its income threshold, so an eligible ACT first home buyer now pays no conveyance duty at all.
Other buyers still pay duty, at rates below most other jurisdictions at typical prices, but the direction is towards an annual land charge rather than one large tax at purchase.
Foreign buyers pay a surcharge on top
Most states add a foreign buyer surcharge on top of ordinary duty for purchasers who are not Australian citizens or permanent residents. It is a serious impost: on a $1 million purchase in New South Wales it adds $90,000 on top of ordinary duty.
from 1 Jan 2025
from 1 Jul 2019
from 1 Jul 2024
from 1 Apr 2020
from 1 Jan 2019
from 1 Jan 2018
land tax surcharge instead
no surcharge levied
When you pay, and how to plan for it
Stamp duty falls due around settlement in most states, within a set period that varies by jurisdiction — the ACT is the exception, where duty is paid after settlement, 14 days from when the title is registered.
It generally cannot be rolled into the mortgage, so it has to be found in cash on top of the deposit. The simplest way to get an accurate figure is the official calculator on your state or territory revenue office website, which applies the current scale, concessions and any surcharge to your exact price.
Budget for it early, confirm whether you qualify for a concession, and factor in the foreign surcharge if it applies. It is the one large cost in a purchase that is entirely predictable in advance, as long as you use the right state's numbers.
This article is general information, not financial, legal or tax advice. Stamp duty rates, thresholds and concessions vary by state and territory and change over time. Confirm the current figures with the relevant revenue office or a qualified professional before relying on them.
