Stamp Duty Explained: State-by-State Guide

Stamp duty (officially called "transfer duty" in most states) is a government tax charged when you purchase a property. It's one of the largest upfront costs in the home buying process and varies significantly by state, purchase price, and buyer type. Understanding it early helps you plan your budget accurately.

How is stamp duty calculated?

Each state uses its own sliding scale of rates applied to the property's dutiable value (usually the purchase price or market value, whichever is higher). Rates increase progressively — lower tiers pay a lower percentage, and higher tiers pay more. This means the effective rate is always lower than the top marginal rate.

First home buyer concessions

Every state offers some form of stamp duty relief for first home buyers, ranging from full exemptions (NSW under $800K, VIC under $600K) to partial concessions and grants. QLD offers a full concession on homes under $500K and a First Home Owner Grant of $30,000 on new builds. These concessions can save first home buyers $10,000–$25,000.

Stamp duty vs annual property tax

The ACT has replaced stamp duty with an annual Land Value Tax for most buyers, paid as an ongoing levy rather than a large upfront cost. NSW and VIC now offer first home buyers the choice between paying stamp duty upfront or opting into an annual property tax — worth modelling carefully with your broker.