Stamp duty in NSW is one of the biggest upfront costs when buying a home—but first home buyers may be eligible for major savings or even a full exemption through the First Home Buyers Assistance Scheme. In this updated 2025 guide, we’ll break down how stamp duty works, who qualifies for exemptions and discounts, the current duty rates, and how much you can realistically expect to save. We’ll also cover key topics, such as foreign buyer surcharges, shared ownership rules, and duty on option purchases—so you’re fully equipped before signing any contract.
Stamp Duty NSW - What Is It?
Stamp duty (also known as transfer duty) is a tax you must pay to the NSW government when a person transfers ownership of a property to you. You must pay transfer duty when buying any of the following types of property:
- The home you are going to live in
- A holiday home
- An investment property
- Vacant land
- Farming property
- A business that includes land in the purchase
- Commercial property
There are certain situations where you may be eligible for a stamp duty discount or exemption:
- When you inherit the property
- When the property is transferred between a married or de facto couple
Stamp duty NSW is payable within 3 months of signing a contract of sale or transfer. However, if you are buying off-the-plan, you may be able to defer your transfer duty by up to 12 months.
As we have mentioned, stamp duty is one of the most expensive hidden costs of buying a home. However, if you are a first home owner, you can take advantage of the First Home Buyer Assistance Scheme.
First Home Buyers Assistance Scheme
Under this scheme, first homeowners in NSW can enjoy a full or partial exemption from paying stamp duty when buying a new home or land to build a home.
Eligibility Criteria
To be eligible for the scheme:
- You must be 18 years or older
- Be an Australian citizen or permanent resident
- If applying as a couple, at least one must be a citizen or permanent resident
- The property must be an existing home, a new build, or vacant land
- Must transfer the entire property, not part of it
- Companies and trusts are not eligible
- You or your partner must never have owned property in Australia
- You must not have used the scheme before
- You must move in within 12 months and live continuously for 12 months
- ADF members are exempt from the residency requirement if on the NSW electoral roll
Property Price Caps
As of 1 July 2023, the NSW Government increased the property price caps under the First Home Buyers Assistance Scheme (FHBAS). These updated thresholds make it easier for first home buyers to access stamp duty exemptions and concessions, whether purchasing a brand new home, an existing property, or vacant land.
New and Existing Homes
- Homes valued at $800,000 or less: Eligible buyers receive a full exemption from stamp duty. This can save you more than $30,000 upfront.
- Homes valued between $800,001 and $1,000,000: A partial concession applies. The closer the purchase price is to $800,000, the larger the discount you’ll receive.
Vacant Land
- Land valued at $350,000 or less: You may be eligible for a full exemption from stamp duty.
- Land valued between $350,001 and $450,000: A discounted rate applies, with the concession decreasing as the land value approaches $450,000.
Remember, these exemptions and concessions are only available to eligible first home buyers. You must move into the property within 12 months of settlement and live there continuously for at least 6 months.
Contracts Signed Before 1 July 2023
If your contract was signed before 1 July 2023, the previous thresholds apply:
- Homes valued at $650,000 or less: Full exemption.
- Homes between $650,001 and $800,000: Concessional rate.
- Vacant land: The $350,000 full exemption and $350,001 to $450,000 concession still apply.
If you’re unsure which threshold applies to you, speak with an experienced mortgage broker
Stamp Duty Rates In NSW (2025 Updated Table)
Even if you’re not a first home buyer, it’s important to understand how stamp duty is calculated.
Stamp duty is calculated using a tiered rate system. The more expensive your property, the higher the percentage you pay. These rates apply whether you’re buying your first home, an investment property, or vacant land.
Here’s a breakdown of the 2025 standard stamp duty rates:
Property Value | Duty Payable |
Up to $16,000 | $1.25 per $100 |
$16,001 – $35,000 | $200 + $1.50 per $100 over $16,000 |
$35,001 – $93,000 | $485 + $1.75 per $100 over $35,000 |
$93,001 – $351,000 | $1,500 + $3.50 per $100 over $93,000 |
$351,001 – $1,168,000 | $10,530 + $4.50 per $100 over $351,000 |
Over $1,168,000 | $47,295 + $5.50 per $100 over $1,168,000 |
Example: Let’s say you’re buying a $1.2 million home. Your stamp duty would be $47,295 plus 5.5% of $32,000. That equals a total of approximately $49,055.
Understanding these rates helps you prepare better for all upfront costs.
Foreign Buyers And Surcharge Purchaser Duty
If you’re a foreign buyer, stamp duty costs more. In addition to regular transfer duty, you must pay an 8% surcharge. This applies whether you’re buying a new home, investment property, or vacant land.
Foreign buyers include people who are:
- Not Australian citizens
- Not permanent residents
- Not New Zealand citizens holding a special category visa
Example: Say you’re a foreign investor buying a $950,000 home. You’ll pay around $36,090 in regular stamp duty. On top of that, you’ll owe $76,000 in surcharge duty. That’s a total of over $112,000.
It’s important to check your residency status before committing to a purchase. You can also apply for exemptions in limited circumstances. Be sure to speak to your solicitor or mortgage broker.
How Much Will I Save With The Stamp Duty NSW Exemption?
Here are the likely savings based on purchase price examples in 2025:
Property Price | Type of Benefit | Estimated Stamp Duty Saving |
$700,000 | Full exemption | $20,530 |
$750,000 | Full exemption | $25,530 |
$800,000 | Full exemption | $30,529 |
$850,000 | Partial concession | $22,900 |
$900,000 | Partial concession | $15,260 |
$950,000 | Partial concession | $7,630 |
$990,000 | Partial concession | $3,060 |
The exact savings vary depending on sliding scale duty rates set by Revenue NSW
Other Benefits Of Stamp Duty Exemptions
- Faster access to home ownership: You can get into the market sooner without having to save a large lump sum for stamp duty.
- Financial flexibility: You may use the extra savings towards moving costs, furniture, or renovations.
- Wider suburb access: Higher thresholds allow first home buyers to consider suburbs where property prices hover around these caps. This includes areas such as Liverpool, Campbelltown, Parramatta, The Central Coast, and parts of Western Sydney—areas popular under the expanded scheme
Buying Property Through An Option Or Shared Ownership
Option Contracts
If you’re buying a property using an option contract, stamp duty still applies. You must pay duty when the option is exercised or assigned. This applies even if the buyer listed on the option differs from the final purchaser.
Let’s say you sign an option agreement today and nominate someone else to buy the property later. That person will still need to pay full stamp duty. The duty amount is based on the final purchase price or market value—whichever is higher.
Option agreements are useful, but they come with extra legal steps. Always speak to your conveyancer or mortgage broker before using one.
Shared Ownership
Buying property with another person? If only one of you qualifies as a first home buyer, the exemption won’t apply to both.
Let’s break it down. If your partner has already owned property before, their share of the property will be taxed. You can still apply for a partial exemption on your portion. But your partner will need to pay full stamp duty on theirs.
This rule also applies if you buy with a parent, friend, or family member. Make sure you understand how duty is split in shared purchases. This can save you from surprise costs at settlement.
Frequently Asked Questions (FAQs) About Stamp Duty In NSW
What is stamp duty in NSW?
Stamp duty—also known as transfer duty—is a tax charged by the NSW Government when you purchase property. It’s paid upfront and is one of the biggest costs you’ll face when buying a home.
How much stamp duty will I pay in NSW?
The amount you pay depends on the purchase price, whether you’re a first home buyer, and your residency status. For an accurate figure, it’s best to use the Revenue NSW stamp duty calculator.
Do first home buyers pay stamp duty in NSW?
If you’re a first home buyer and purchasing a home under $800,000, you may qualify for a full stamp duty exemption. For homes valued up to $1 million, partial concessions are available.
What are the 2025 stamp duty rates in NSW?
In 2025, rates start at 1.25% and go up to 5.5%, depending on your property’s value. Homes over $3 million attract a premium rate.
Can I get a stamp duty exemption as a foreign buyer?
Unfortunately, no. Foreign buyers not only pay standard stamp duty but also face an 8% foreign purchaser surcharge, with no exemptions available.
When is stamp duty due in NSW?
Stamp duty must be paid within three months of signing the contract. If you’re buying off the plan and intend to live there, you may be eligible for a 12-month deferral.
Is stamp duty different for investment properties?
No—investment properties are subject to the same rates as owner-occupied homes. However, investors are not eligible for first home buyer exemptions or concessions.
Do I still pay stamp duty if I buy with a family member?
Yes. Each buyer’s share is assessed separately. If only one is a first home buyer, the other will still be liable for their portion of stamp duty.
What happens if I buy under an option agreement?
You’ll still need to pay stamp duty, based on either the agreed purchase price or the market value—whichever is higher. Even if the buyer’s name changes later, the duty still applies.
Where can I get help calculating stamp duty?
You can use the official Revenue NSW calculator, or speak to a mortgage broker who can guide you through your stamp duty obligations and help you budget correctly.
Can I pay stamp duty in instalments?
Generally, no stamp duty must be paid in full by the due date. However, in limited hardship cases, Revenue NSW may approve a payment plan. It’s best to apply early and provide full documentation.
Do pensioners pay stamp duty in NSW?
There are no general stamp duty exemptions for pensioners in NSW. That said, if you’re a first home buyer pensioner and meet the criteria, you may qualify for concessions under existing first home buyer schemes.
Ready To Buy A Home In NSW?
Our team at Hunter Galloway is here to help you buy a home in NSW. Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping making your home loan journey as simple as possible.
If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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