Stamp duty in Australia explained: every state, plain English (2026 update)

Stamp duty rules differ in every Australian state, and the concessions for first home buyers have changed dramatically in the last two years. This is the complete plain-English guide for 2026.

By ECTD Editorial · Published 2026-05-02 · Updated 2026-05-02

For most Australians, buying a home is the largest financial decision of their life — and stamp duty is the largest single cost on top of the deposit. Get it wrong and you can be tens of thousands short at settlement. Get it right (or qualify for the right concession) and you can save your entire upfront cost. Here's how stamp duty works in every Australian state and territory in 2026, what changed recently, and how to avoid the common traps.

What stamp duty is, and why it exists

Stamp duty — also called transfer duty or conveyance duty — is a one-off tax paid to your state or territory government when property changes ownership. It's the largest source of tax revenue for most Australian state governments, ahead of payroll tax and gambling levies.

There is no federal stamp duty in Australia. Each state and territory sets its own rates, thresholds, concessions, and surcharges. This is why a $700,000 first home purchase can cost $0 in stamp duty in South Australia and $25,000 in some other states.

Stamp duty is calculated as a percentage of the purchase price, with the percentage rising in tiers as the price goes up. Most states have a small flat amount for the first slice (e.g. $0 to $25,000), then progressively higher percentages on each additional slice.

How stamp duty works for the typical Aussie buyer

For an owner-occupied established home in 2026, with no concessions applicable, here's the rough order-of-magnitude:

$400,000 home: $11,000–$15,000 stamp duty depending on state
$700,000 home: $25,000–$30,000 depending on state
$1 million home: $40,000–$45,000 depending on state
$1.5 million home: $65,000–$80,000 depending on state

Add roughly 5-9% Foreign Purchaser Surcharge if you're a non-resident, depending on state. The ACT is the cheapest at 0.75% surcharge; NSW is the highest at 9%.

First home buyer concessions: state by state in 2026

This is where it gets interesting. Concessions for first home buyers have been dramatically expanded by most states in 2024-25, and a typical Australian first home buyer can now save tens of thousands of dollars. Here's the current state of play in 2026.

New South Wales

The First Home Buyer Assistance Scheme (FHBAS) gives a full exemption from transfer duty on properties up to $800,000, and a sliding-scale concession on properties between $800,000 and $1,000,000. Above $1m, no concession applies — you pay the full amount.

To qualify: you must be 18+, an Australian citizen or permanent resident, never owned property in Australia before, and intend to live in the property for at least 12 months within the first 12 months of settlement.

Victoria

First home buyers pay no duty up to $600,000 and a sliding concession up to $750,000. Above $750,000, no concession. Victoria also has an off-the-plan concession for new apartments and townhouses that can save additional duty if you contract before construction.

Queensland

From 9 May 2024, the QLD Government significantly raised the first home concession threshold:

Full exemption: properties up to $700,000 (was $550,000)
Sliding concession: properties $700,000–$800,000

This was the biggest QLD first home concession in over a decade and saves typical Brisbane and regional buyers around $15,000–$20,000 each. Owner-occupiers (not first home) also benefit from a separate "home concession" rate that's lower than the general transfer duty rate.

Western Australia

WA's First Home Owner Rate (FHOR):

$0 duty on established/new homes up to $450,000
Sliding concession from $450,000 to $600,000
$0 duty on vacant land up to $300,000 (sliding to $400,000)

WA's thresholds are noticeably lower than the eastern states because Perth median property prices are also lower — the relative coverage is similar.

South Australia

In June 2024, SA made the most generous policy change of any Australian state: complete abolition of stamp duty for eligible first home buyers purchasing a new home — with no price cap.

There's a catch: this only applies to new builds and house-and-land packages. Established homes still attract the standard SA conveyance duty. The policy is designed to encourage new housing supply rather than competition for existing stock.

Tasmania

Tasmanian first home buyers receive a 50% reduction in stamp duty on properties up to $750,000 (extended in 2024). Combined with the First Home Owner Grant ($10,000 for new builds), the total upfront saving for an eligible Tasmanian first home buyer can exceed $20,000.

Australian Capital Territory

The ACT works differently: instead of property-price-tested concessions, it uses an income-tested Home Buyer Concession Scheme (HBCS). If your household income is below the threshold (varies by household size), you may pay $0 duty on any property type — established, new, or land — without a price cap.

The ACT is also gradually phasing out stamp duty entirely in favour of higher annual general rates. Each year, conveyance duty rates are reduced. The long-term goal is to abolish stamp duty completely — though the timeline keeps shifting.

Northern Territory

NT first home buyers building a new home or buying off-the-plan may receive a discount of up to $50,000 off stamp duty. The NT also has a separate First Home Owner Grant for eligible buyers.

The NT uses a unique formula-based duty calculation rather than the tiered tables other states use — for properties under $525,000, duty is calculated using a quadratic formula. Above that, it's a flat percentage.

Foreign buyer surcharges in 2026

Most states impose a substantial Foreign Purchaser Surcharge on top of standard stamp duty for non-resident purchasers of residential property. This is in addition to standard duty and can effectively double the total cost.

NSW: 9% (raised in 2024 — highest in Australia)
VIC: 8%
QLD: 8% (Additional Foreign Acquirer Duty)
WA: 7%
SA: 7%
TAS: 8%
ACT: 0.75% (lowest by far)
NT: no surcharge currently

Foreign-buyer rules also differ in scope — what counts as "foreign" varies (some states include certain trusts and companies even if Australian-controlled). Anyone affected should consult a specialist conveyancer.

How to actually pay stamp duty

Stamp duty is typically paid at settlement, through your conveyancer or solicitor, who handles it as part of the property transfer. The deadline varies by state — most are 3 months from contract date or settlement, whichever is earlier.

You can't directly include stamp duty in your home loan as a separate line item — it's a non-financeable cost, like the deposit. However, you can sometimes structure your borrowing so that you're effectively borrowing against future equity to cover it (e.g. if your deposit savings are mostly going into stamp duty, the loan is effectively higher LVR than it appears).

Always confirm the exact amount with your conveyancer well before settlement. State revenue offices issue formal duty assessments, and small contract date or definition differences can shift the amount by hundreds of dollars.

Stamp duty traps to avoid

1. The "first home buyer" definition is narrower than you think

In most states, "first home buyer" means you (and your partner if buying jointly) have never owned any property in Australia at any time. If you owned a tiny investment property in your 20s and sold it, you generally can't claim the first home buyer concession on your next purchase 15 years later — even though it would functionally be your first home to live in.

2. Off-the-plan can save or cost you money depending on timing

Some states (notably Victoria and to a lesser extent Queensland) have off-the-plan concessions where stamp duty is calculated on the land value at contract date, not the eventual completed property value. This can save tens of thousands. But the rules are tight — you must contract before specific construction milestones — and the calculation is complex enough that you really need a conveyancer.

3. Investment properties pay full duty even at first purchase

First home concessions universally require you to live in the property as your principal place of residence — usually for at least 6 to 12 months. If you buy your first property as an investment from day one, you pay full duty.

4. Foreign surcharges can be triggered unexpectedly

If you're an Australian citizen but buying jointly with a partner who isn't a permanent resident, the foreign surcharge can apply to their share. Trusts and family companies have surprisingly complex foreign-buyer rules. If anyone on the title isn't a clear Australian citizen or permanent resident, get specialist advice.

5. Mortgage refinancing doesn't trigger stamp duty…

…but there are edge cases where it can. Restructuring ownership between spouses (adding or removing a name from the title), transferring property into a trust or self-managed super fund, or changing the property's ownership share can trigger duty. Always check before doing any of these.

What else to budget for at settlement

Stamp duty is the largest non-deposit cost, but not the only one. Most Australian buyers should budget for these on top:

Conveyancing fees: $1,500–$3,000 — solicitor or conveyancer to handle settlement
Building & pest inspection: $400–$700 — essential for established homes
Loan establishment fees: $0–$700 depending on lender
Lenders Mortgage Insurance (LMI): $5,000–$30,000 if your deposit is under 20%
Title transfer & registration fees: $200–$300 (paid to the state revenue office)
Council rates and water adjustments: a few hundred dollars at settlement

For most buyers, the total upfront cost (excluding deposit) lands around 5–8% of the purchase price. On a $700,000 home, that's $35,000–$56,000 above the deposit. Plan for the high end and be pleasantly surprised if you come in under.

The bigger picture

Stamp duty is hated by economists — every credible review of Australia's tax system has recommended replacing it with a broader-based annual property tax, because stamp duty discourages people from moving when their circumstances change. The ACT is the only jurisdiction actually phasing it out.

For now, though, it's a reality of buying property in Australia. Use the calculator linked above for your specific situation. If you're a first home buyer, check your state's concession rules carefully — saving $20,000 on your first home is the equivalent of a year's worth of mortgage repayments. Few financial moves at this stage of life have a higher return on attention than getting your stamp duty concession application right.

General information only — not personal financial, tax, legal or medical advice. Consider your own situation and consult a licensed professional before acting. Figures are current as at the date shown above.