Stamp duty — officially called transfer duty in most Australian states — is a government tax on property transactions. It is one of the largest upfront costs in any property purchase and can add tens of thousands of dollars to the cost of buying a home. Yet many buyers underestimate it or forget to include it in their budget entirely.
This guide explains what stamp duty is, how it is calculated in every Australian state, what exemptions and concessions are available, and how a Collings Property Advisor can help you factor it correctly into your property strategy.
What Is Stamp Duty?
Stamp duty is a state government tax levied on the transfer of property. When you buy a property, you are required to pay stamp duty to the relevant state revenue authority before or at settlement. The amount is calculated as a percentage of the purchase price, with higher-value properties attracting a higher rate.
Stamp duty is collected by the state government — not the federal government — which means rates differ in every state and territory.
How Much Is Stamp Duty in Each State? (2026)
| State | $500k Property | $750k Property | $1M Property | First Home Buyer Exemption |
|---|---|---|---|---|
| Victoria (VIC) | ~$21,970 | ~$40,070 | ~$55,000 | Full exemption up to $600k, concession up to $750k |
| New South Wales (NSW) | ~$17,990 | ~$29,240 | ~$40,490 | Full exemption up to $800k, concession up to $1M |
| Queensland (QLD) | ~$8,750 | ~$20,250 | ~$32,750 | Concession for first home buyers on principal place of residence |
| Western Australia (WA) | ~$17,765 | ~$28,265 | ~$40,265 | Exemption on homes up to $430k, reduced duty to $530k |
| South Australia (SA) | ~$21,330 | ~$32,830 | ~$48,830 | No general FHB stamp duty exemption (FHOG grant instead) |
| Tasmania (TAS) | ~$18,247 | ~$28,997 | ~$42,997 | 50% concession for first home buyers on homes up to $600k |
| ACT | ~$14,750 | ~$25,250 | ~$36,750 | Home buyer concession scheme — income tested |
| NT | ~$23,928 | ~$38,928 | ~$54,928 | Principal place of residence rebate up to $18,601 |
Note: Figures are approximate estimates only. Always check with your state revenue authority or solicitor for exact amounts based on your specific circumstances.
How Is Stamp Duty Calculated?
Stamp duty is calculated on a tiered (progressive) basis. Each dollar of the purchase price falls into a bracket and is taxed at the applicable rate for that bracket. Higher-value properties attract higher marginal rates, similar to how income tax works.
For example, in Victoria in 2026, the stamp duty on a $750,000 property is calculated across multiple brackets up to the full purchase price.
Who Pays Stamp Duty?
The buyer pays stamp duty. It is due at settlement — the same time you pay the balance of the purchase price and receive the keys. You cannot pay stamp duty in installments.
Can Stamp Duty Be Reduced or Avoided?
In some circumstances, yes:
- First Home Buyer exemptions: Most states offer full or partial exemptions for first home buyers below a threshold price
- Off-the-plan purchases: Some states allow stamp duty to be calculated on the land value only (before construction) for off-the-plan properties, which can significantly reduce the duty payable
- Transfers between family members: Some intra-family property transfers attract concessional or nil duty rates in certain states
- Deceased estates: Transfers via deceased estate may attract reduced duty in some jurisdictions
Stamp Duty and Property Strategy
Stamp duty is a significant transaction cost that affects the economics of every property purchase. For investors, stamp duty is not immediately tax-deductible — it is added to the cost base of the property for capital gains tax purposes. This means the effective cost of stamp duty is recovered over the long term, not in the year of purchase.
Understanding stamp duty before you set your purchase budget is essential. A Collings Property Advisor includes stamp duty analysis as part of the full advisory service, ensuring you know the total acquisition cost — not just the purchase price — before making any offer.
Frequently Asked Questions
Is stamp duty tax deductible for investors?
No — not immediately. Stamp duty is added to the cost base of an investment property for capital gains tax (CGT) purposes. This means it reduces the CGT liability when you eventually sell, but it is not deductible as an expense in the year of purchase. Always confirm the tax treatment with your accountant.
When do I have to pay stamp duty?
Stamp duty is payable at settlement in most states. You cannot take possession of the property without paying it. Your solicitor or conveyancer will calculate and arrange payment as part of the settlement process.
Can I include stamp duty in my home loan?
Most lenders do not include stamp duty in the home loan — it must be paid from your own funds (or from the first home buyer grant in eligible cases). This is why stamp duty is included in the calculation of your required deposit and upfront costs.
How do I get help understanding stamp duty on a specific property?
A Collings Property Advisor will calculate the exact stamp duty applicable to any property you are considering as part of the full advisory service. We include total acquisition cost analysis — purchase price plus stamp duty, conveyancing, building inspection and other upfront costs — so you have a complete picture before making any offer.
Why Collings Property Advisory?
Understanding stamp duty is just one part of making a sound property decision. A Collings Property Advisor gives you independent market value analysis, negotiation strategy and total acquisition cost modelling for a flat $4,500 + GST.
Fixed fee: $4,500 + GST. No commissions. No surprises.
Contact us today: collings.com.au/portal
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