Your state-by-state guide to stamp duty

Stamp duty, otherwise known as transfer or conveyance duty, is a tax imposed by state and territory governments whenever a person purchases a property.

It can apply to owner-occupiers and investors, as well as first home buyers. Though, many jurisdictions waive or discount stamp duty for first home buyers. In some places, it can even be enforced even when a new owner doesn't pay a cent for a property, such as when a property is gifted.

While it's easy to forget about stamp duty when you're hunting to buy a property, the tax shouldn't be overlooked. It can add tens of thousands of dollars to a sale transaction and effectively minimise a buyer's borrowing power.

Property buyers are required to pay stamp duty directly to their state or territory's revenue office, and the process is generally best handled with the assistance of a solicitor or conveyancer.

Now, let's get down to tin tacks.

How much is stamp duty?

The amount of stamp duty a buyer must pay will depend on the state or territory in which they're buying in, as well as the type of property being purchased and its value. Generally, the more a buyer pays for their home or investment property, the more stamp duty they'll face.

Every state and territory has a different way of calculating stamp duty, and some jurisdictions offer more generous exemptions and discounts than others.

Stamp duty often runs into the tens of thousands of dollars and there are few ways of getting out of paying it, so you'll need to factor it into your home buying calculations.

Your Mortgage's stamp duty calculator can guide you on how much you might be liable to pay when buying a home in your state or territory.

Can you avoid stamp duty?

Some stamp duty exemptions and concessions are available, with many dependent on where you're purchasing, whether you're buying your first home, and if you're planning to occupy the property.

In most places, if property is being transferred between family members as a result of a death or divorce, the new owner will not need to pay stamp duty.

Some states also waive or discount stamp duty for first home buyers, and others offer concessional rates for pensioners, downsizers, carers, and farmers.

If you don't qualify a stamp duty exemption or concession where you live, you might consider purchasing in another state that charges less stamp duty or provides more generous concessions. Otherwise, buying a cheaper property is really the only way to reduce your stamp duty bill.

It's worth being mindful of the purported purpose of stamp duty.

State and territory governments say the collected funds are put towards upscaling and improving services like healthcare, law enforcement, planning and infrastructure, to name a few. That said, back in the year 2000, the introduction of the GST was meant to cover the cost of such services. Go figure.

If you're looking to buy property, it could pay to discuss your stamp duty options with a solicitor or conveyancer prior to purchasing. This could help you be financially prepared and give you the opportunity to forward plan, especially if you need to accumulate extra funds to pay for the tax.

To help you prepare and understand when stamp duty needs to be paid, here is a snapshot of how your state or territory calculates and applies stamp duty.

How stamp duty works in New South Wales (NSW)

Standard stamp duty rates for most NSW properties are as follows:

• If you spend $97,000 to $364,000: $1,564 plus $3.50 for every $100 over $97,000

• If you spend $364,000 to $1.212 million: $10,909 plus $4.50 for every $100 over $364,000

• If you spend over $1.212 million: $49,069 plus $5.50 for every $100 over $1.212 million

• If you spend over $3.636 million on a residential property: $182,389 plus $7.00 for every $100 over $3.636 million

If you're an eligible first home buyer, you might be off the hook for stamp duty in NSW, provided the property you purchase is valued at less than $800,000. First-time buyers purchasing homes for more than $800,000 but less than $1 million can apply for a concessional stamp duty rate.

Vacant land valued up to $350,000 is also exempt from stamp duty for first home buyers, and they might be able to pay a concessional rate when buying a block valued between $350,000 and $450,000.

NSW stamp duty needs to be paid to the state's revenue office no later than three months after settlement day on a property purchase. When it comes to off-the-plan purchases, as long as you plan to reside in the property, there's a chance you may be eligible to postpone paying tax for up to 15 months, or on the handover of the property if that's sooner.

How stamp duty works in Victoria

General stamp duty rates in Victoria are:

• If you spend $130,000 to $960,000: $2,870 plus 6% of the dutiable value over $130,000

• If you spend $960,000 to $2 million: 5.5% of the dutiable value

• If you spend over $2 million: $110,000 plus 6.5% of the dutiable value over $2 million

If you're an eligible first home owner in Victoria, you won't be required to pay stamp duty as long as your property's value is $600,000 or less. If it's between $600,000 and $750,000, you'll be eligible for a concessional rate. Such rates may also be available for pensioners, farmers, and those purchasing a property off-the-plan.

Stamp duty in Victoria needs to be paid by the purchaser 30 days after the property is transferred.

As of 21 October 2024, all buyers of off-the-plan strata properties will be eligible for a temporary stamp duty concession for a period of 12 months. This includes units, apartments, and townhouses but does not extend to house and land packages.

How stamp duty works in Queensland

Standard rates for Queensland properties purchased for $75,000 or more are as follows:

• If you spend $75,000 to $540,000: $1,050 plus $3.50 for every $100, or part thereof, over $75,000

• If you spend $540,000 to $1 million: $17,325 plus $4.50 for every $100, or part thereof, over $540,000

• If you spend more than $1 million: $38,025 plus $5.75 for every $100, or part thereof, over $1 million

Lower stamp duty rates apply to properties you plan to reside in, rather than rent out. If you're an eligible first home buyer, you will receive a stamp duty concession if the property you're purchasing is valued at less than $800,000. Seniors or pensioners are not extended general concessions in Queensland.

In Queensland, stamp duty is payable to the state's revenue office no later than 30 days after settlement of the property.

How stamp duty works in South Australia (SA)

Standard fees for properties purchased in SA, valued at $250,000 and up, are as follows:

• If you spend $250,000 to $300,000: $8,955 plus $4.75 for every $100, or part thereof, over $250,000

• If you spend $300,000 to $500,000: $11,330 plus $5 for every $100, or part thereof, over $300,000

• If you spend more than $500,000: $21,330 plus $5.50 for every $100, or part thereof, over $500,000

Unlike other states, SA only provides stamp duty relief for eligible first home buyers purchasing new homes or blocks of land, not those buying already established properties. However, first home buyers claiming stamp duty exemptions aren't restricted by property value caps.

Stamp duty in SA is usually required to be paid on or before settlement day.

How stamp duty works in Tasmania

Stamp duty on property purchases worth $200,000 and over are as follows:

• If you spend $200,000 to $375,000: $5,935 plus $4 for every $100, or part thereof, over $200,000

• If you spend $375,000 to $725,000: $12,935 plus $4.25 for every $100, or part thereof, over $375,000

• If you spend over $725,000: $27,810 plus $4.50 for every $100, or part thereof, over $725,000

Stamp duty concession rates are available to first home buyers and pensioners downsizing their homes in Tasmania.

Eligible first home buyers spending less than $750,000 to enter the market will see stamp duty waived. The first home buyer discount in Tasmania applies to both new and established properties.

Downsizing pensioners spending less than $600,000 and buyers purchasing an off-the-plan unit for less than $750,000 could get a 50% discount.

Stamp duty in Tasmania needs to be paid by the purchaser in the three months after a property is transferred, which is usually included in the paperwork signed on settlement day.

How stamp duty works in Western Australia (WA)

General stamp duty rates for WA property, starting with properties valued at over $150,000 are as follows.

• If you spend $150,000 to $360,000: $3,135 plus $3.80 for every $100, or part thereof, above $150,000

• If you spend $360,001 to $725,000: $11,115 plus $4.75 for every $100, or part thereof, above $360,000

• If you spend $725,001 or over: $28,453 plus $5.15 for every $100, or part thereof, above $725,000

A concessional stamp duty rate is available for those buying an entire WA property worth less than $200,000.

First home owners may also be exempt from stamp duty when purchasing a property worth up to $450,000 or vacant land worth up to $300,000, while a concessional rate applies for properties valued between $450,001 and $600,000 and land valued between $300,000 and $400,000.

In WA, a buyer has two months after settlement day to apply for a Duties Assessment Notice through the state's revenue office. Once the office issues the notice, which states the stamp duty rate applicable, a buyer has one month to lodge the payment.

A complete run-down of fees is provided by the state's revenue office.

How stamp duty works in the Northern Territory (NT)

Out of all the states and territories, Northern Territory has made calculating stamp duty most complicated. It has a complex formula for properties valued up to $525,000. Are you ready for it? It's:

stamp duty payable = (0.06571441 x V²) + 15V

Where 'V' refers to one one-thousandth (1/1000) of the property's value.

On a $500,000 property, this essentially means you'd be on the hook for $23,928.60 in stamp duty.

If you're not into algebra, it might be best to input the property value into the stamp duty calculator provided by the NT Government.

Rates for property purchases of more than $525,000 are much simpler to work out and are as follows:

• If you spend $525,001 to $3 million: 4.95% of the property value

• If you spend $3 million to $5 million: 5.75% of the property value

• If you spend more than $5 million: 5.95% of the property value

The NT Government does not currently offer first home owner exemptions or concessions for stamp duty (although it did for a short period between February 2019 to June 2021).

If purchasing in the NT, stamp duty is payable 60 days after the transfer of the property is legally finalised, which would occur on settlement day.

How stamp duty works in the Australian Capital Territory (ACT)

The ACT calls stamp duty 'conveyance duty'. Some of the current standard rates are as follows:

• If you spend $300,001 to $500,000: $2,154 plus $3.40 per $100 over $300,000

• If you spend $500,001 to $750,000: $8.954 plus $4.32 per $100 over $500,000

• If you spend $750,001 to $1 million: $19,754 plus $5.90 per $100 over $750,000

• If you spend $1,000,001 to $1,454,999: $34,594 plus $6.40 per $100 over $1 million

• If you spend $1,455,000 and over: A flat rate of $4.54 per $100 applied to the total value

There have been a number of changes to both stamp duty rates and procedures in the ACT in recent years, so it's advised to use the ACT revenue office's online calculator to determine an approximate stamp duty rate.

As part of recent reforms, there are now also various concessions in place. These include:

• No stamp duty payable on some off-the-plan units purchases, as long as a buyer doesn't spend more than $800,000

• First home buyers may pay no stamp duty or a reduced rate, depending on their household income and how many dependent children they have

• Pensioners and those living with a disability may be eligible for exemptions or concessions, depending on the value of the property or land they purchase

Conveyance duty forms need to be submitted to Canberra Access no later than 14 days after property settlement. Once the buyer receives a Notice of Assessment back, they then have 14 days to pay the set stamp duty costs.

Also read: Frequently asked questions about stamp duty

Stamp duty discounts & grants for first home buyers

It's important to note that eligibility requirements for first home owner stamp duty exemptions or concessions may differ from those for first home owner grants in some states and territories.

Don't assume that being ineligible for one means you're ineligible for the other. Carefully review the eligibility requirements for both.

In some jurisdictions, you can only claim either a stamp duty discount or a grant, but in others, you may be able to claim both.

Make sure to do your homework on this or seek professional advice.

Frequently asked questions on stamp duty

When is stamp duty payable?

Stamp duty is generally paid upon settlement, however it's important to note that payment requirements differ from state to state. Your solicitor or conveyancer will be able to explain exactly when and how you need to pay stamp duty.

Does stamp duty come out of my cash deposit?

Stamp duty is an upfront cost paid in addition to a deposit on a property. Whether you pay it in cash or roll it into your home loan is up to you. Remember, if you add the cost of stamp duty to the value of your home loan, you'll pay interest on the cost and it could impact your loan-to-value ratio (LVR), potentially putting you in danger of a higher interest rate or Lenders Mortgage Insurance (LMI).

How do I calculate my stamp duty?

A quick way to estimate how much stamp duty could cost you is to use a stamp duty calculator. Just enter your expected purchase price, your state or territory, and whether you’re a first home buyer, owner-occupier, or investor to get a projection of stamp duty costs.

Can I add stamp duty onto the balance of my loan?

Yes, stamp duty can often be added to your home loan. However, if this significantly increases your loan balance, it could affect your ability to meet your lender’s requirements. Consult with your lender or broker to determine if this option works for your financial situation.

Does the type of home purchased affect how much stamp duty is payable?

The amount of stamp duty you’ll need to pay can depend on the type of property being purchased and what you intend to use it for. A person’s stamp duty liability is dependent on their property’s purchase price – the more paid, the more stamp duty will typically be owed. However, if you’re building a dwelling, you’ll only need to pay stamp duty on the purchase of land, not the cost of construction. Many states and territories also grant stamp duty discounts to owner-occupiers, meaning those buying an investment property might need to pay more.

Do you have to pay stamp duty when refinancing?

Stamp duty is generally not payable when refinancing, as no ownership change occurs. However, if refinancing involves adding or removing someone from the property title, stamp duty may apply. Consult your lender or broker to understand the specific costs associated with refinancing.

Finding a competitive home loan

The costs associated with buying a home can seem insurmountable. That's why it's important to seek out a competitive home loan at a time when every cent counts. The table below features owner occupier loans with some of the lowest interest rates on the market.

Important Information and Comparison Rate Warning

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For further, and more detailed information on how stamp duty applies in your state, it's advised to gain the professional help of an expert, such as a mortgage broker, solicitor, or conveyancer who operates in the state you are buying within. You can also visit the following government websites:

• NSW State Revenue Office

• Queensland Treasury

• South Australia Revenue Office

• Tasmanian State Revenue Office

• Northern Territory Treasury

• Western Australia Department of Finance

• Victorian State Revenue Office

• Australian Capital Territory State Revenue Office

_{Details correct as of June 2024.}

_{Image by Markus Spiske}

_{Article first published by Nina Cuturic in March 2019. Last updated by Denise Raward in June 2024.}