Stamp duty is one of the largest upfront costs of buying property in Australia — yet most buyers do not fully understand how it is calculated until they are committed to a purchase. This guide explains what stamp duty is, how much you will pay in each state, who qualifies for exemptions, and how to factor it into your property budget.
What Is Stamp Duty?
Stamp duty (officially called transfer duty in most states) is a state government tax charged on the transfer of property. It is paid by the buyer at the time of settlement and is calculated as a percentage of the purchase price or the property’s market value, whichever is higher.
Stamp duty is a tiered, progressive tax — meaning higher-priced properties attract a higher effective rate. It is one of the largest transaction costs in Australian real estate and is a critical factor in the total cost of buying a property.
How Is Stamp Duty Calculated?
Stamp duty is calculated on a sliding scale based on the purchase price. Each state has its own rate schedule with different thresholds. The general structure is:
- Lower purchase prices attract a lower percentage rate
- As the purchase price increases, each additional dollar is taxed at a higher marginal rate
- The total stamp duty is the sum of each tier applied to the purchase price
Stamp Duty by State — 2026 Guide
| State | Stamp Duty on $700k Property | Stamp Duty on $1M Property | First Home Buyer Exemption Threshold |
|---|---|---|---|
| Victoria | ~$37,000 | ~$55,000 | Up to $600,000 (full exemption) |
| NSW | ~$26,775 | ~$40,335 | Up to $800,000 (full exemption) |
| Queensland | ~$17,350 | ~$30,850 | Up to $550,000 (full exemption) |
| Western Australia | ~$23,928 | ~$38,928 | Up to $430,000 (full exemption) |
| South Australia | ~$29,330 | ~$48,830 | No duty on $650k+ but grants available |
| Tasmania | ~$28,231 | ~$45,731 | 50% concession up to $600,000 |
| ACT | ~$21,620 | ~$34,120 | Household Income Test applies |
| NT | ~$25,000 | ~$42,000 | First Home Owner Discount available |
Note: These figures are estimates based on standard rates. Exact calculations depend on property type, buyer status and state-specific rules. Always confirm with a conveyancer or the relevant State Revenue Office before settlement.
First Home Buyer Stamp Duty Exemptions
Every Australian state and territory offers some form of stamp duty concession or exemption for first home buyers. The key rules:
- Victoria: Full exemption on properties up to $600,000. Concession on properties between $600,001 and $750,000.
- NSW: Full exemption on properties up to $800,000. Concession between $800,001 and $1,000,000.
- Queensland: Full exemption on properties up to $550,000. Concession between $550,001 and $600,000.
- WA: Full exemption on properties up to $430,000. Concession between $430,001 and $530,000.
In all cases, you must be an Australian citizen or permanent resident, be buying your first home, and intend to live in the property as your principal place of residence.
Can a Property Advisor Help With Stamp Duty Planning?
Yes. Understanding your total transaction costs — including stamp duty, conveyancing, building inspection, mortgage costs and moving expenses — is a critical part of property advisory. Collings Property Advisory includes a full cost-of-acquisition breakdown as part of every buyer advisory engagement, so you know your exact total outlay before you commit.
Frequently Asked Questions
When do I pay stamp duty?
Stamp duty is typically paid at settlement — which is usually 30-90 days after the contract is signed, depending on the state and agreed settlement terms.
Can I add stamp duty to my mortgage?
Most lenders do not allow you to include stamp duty in your loan. It must be paid from your own funds (savings or deposit). This is why stamp duty is a critical factor in calculating how much deposit you actually need.
Is stamp duty the same as transfer duty?
Yes. Stamp duty and transfer duty refer to the same tax. Most states have rebranded it as transfer duty in recent years, but both terms are still used interchangeably.
Do investors pay stamp duty?
Yes. Investors pay full stamp duty with no concessions unless they are also owner-occupiers. Foreign investors pay additional foreign purchaser surcharge on top of standard stamp duty in all Australian states.
Why Collings?
Collings Property Advisory is powered by GeeVee AI property intelligence. Our buyer advisory service includes a full cost-of-acquisition analysis so you know exactly what your purchase will cost — including stamp duty, before you sign anything.
Fixed fee: $4,500 + GST. No commission. No conflicts of interest.
Start your advisory today at collings.com.au/portal or call us to discuss your property situation.
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