Buyer’s guide · NSW
Stamp duty in NSW: what every buyer needs to know
Stamp duty is usually the biggest cost of buying after the deposit. Here’s how NSW transfer duty is calculated, what you’ll pay at today’s rates and when it has to be paid.
In NSW, stamp duty is officially called transfer duty. It’s a state tax the buyer pays on most property purchases, and on a typical Sydney home it runs to tens of thousands of dollars.
This guide explains how Revenue NSW calculates it, what you’d pay at the 2026-27 rates, the extra duties that can apply and the deadline that catches buyers with long settlements. If you’re a first home buyer, read it with our guide to first home buyer grants and schemes, because you may pay much less or nothing at all.
Key takeaways
- Duty is calculated on the higher of the price and the market value, using a sliding scale of rates.
- The rates are indexed each 1 July, and the rates that apply are set by your contract date.
- At the 2026-27 rates, duty on a $1 million purchase is $39,187.
- Duty is due by settlement or 3 months after exchange, whichever comes first, so a long settlement can mean paying early.
- Foreign buyers of residential property pay an extra 9% surcharge purchaser duty.
On this page
How transfer duty is calculated
Transfer duty is calculated on the dutiable value of the property. According to Revenue NSW, that’s the higher of the price you agreed to pay and the property’s market value. The buyer pays it. Sellers don’t pay transfer duty.
For most arm’s length sales, the price is the market value. It matters more when you’re buying from a relative or related party, or not paying full price. In those cases, Revenue NSW may ask for a formal valuation and charge duty on the market value, even if you paid less.
The 2026-27 rates
NSW uses a sliding scale. The thresholds are indexed to CPI each year, and the rates that apply are those for the financial year of your contract date. For contracts dated from 1 July 2026 to 30 June 2027, the rates are:
| Dutiable value | Transfer duty |
|---|---|
| Up to $18,000 | $1.25 for every $100 (minimum $20) |
| $18,001 to $38,000 | $225 plus $1.50 for every $100 over $18,000 |
| $38,001 to $103,000 | $525 plus $1.75 for every $100 over $38,000 |
| $103,001 to $387,000 | $1,662 plus $3.50 for every $100 over $103,000 |
| $387,001 to $1,290,000 | $11,602 plus $4.50 for every $100 over $387,000 |
| Over $1,290,000 | $52,237 plus $5.50 for every $100 over $1,290,000 |
Premium property duty
If you buy a residential property worth more than the premium threshold of $3,870,000, a higher rate applies. Duty is $194,137 plus $7.00 for every $100 over $3,870,000.
What you’d pay
Here’s what transfer duty comes to at a few common price points, using the 2026-27 rates. These are for an Australian buyer with no exemption or concession.
| Purchase price | Transfer duty |
|---|---|
| $750,000 | $27,937 |
| $1,000,000 | $39,187 |
| $1,500,000 | $63,787 |
| $2,000,000 | $91,287 |
Revenue NSW’s transfer duty calculator is the easiest way to check your own figure. Duty is usually paid from your own funds, not your loan, so build it into your budget from the start.
First home buyers
If you qualify for the First Home Buyers Assistance Scheme, you pay no transfer duty on a new or existing home worth $800,000 or less, or vacant land worth $350,000 or less. Reduced duty applies to homes under $1 million and vacant land under $450,000.
You must meet the eligibility and residence rules, including moving in within 12 months and living there for at least 12 months in a row. Our guide to NSW first home buyer grants and schemes explains the rules, and how the scheme works with the $10,000 grant and the federal 5% Deposit Scheme.
Foreign buyers
If you’re a foreign person buying residential-related property in NSW, you may have to pay surcharge purchaser duty on top of transfer duty. It’s a flat 9% of the dutiable value, and it must be paid at the same time as transfer duty.
On a $1 million home, that’s $90,000 of surcharge purchaser duty on top of $39,187 of transfer duty. Whether you’re a foreign person depends on your citizenship, visa and, for permanent residents and some visa holders, time spent in Australia. Trusts and companies have their own tests. Get advice before you sign.
When duty must be paid
Revenue NSW says duty must be paid by the earlier of:
- settlement, and
- 3 months after you sign the contract.
For a normal 42-day settlement, that means paying at settlement. But if you’ve negotiated a long settlement, for example to sell your current home first, duty is due 3 months after exchange, before you settle. Daily interest applies to late payment.
Buying off the plan
If you buy off the plan to live in, you may be able to defer duty for up to 12 months. With the deferral, duty is due at the earliest of 15 months after signing, settlement, or when the contract is assigned. The deferral only applies if each buyer is an Australian citizen or eligible permanent resident and you intend to live in the property. It isn’t available for investment properties, trusts or companies.
How it’s paid
Most buyers pay through their lawyer or conveyancer, who calculates the duty, lodges the transaction with Revenue NSW and pays it at settlement through PEXA. You’re still responsible for making sure it’s paid on time.
Watch out for duty scams
- Revenue NSW warns of scams involving duty payments and fake messages from lawyers and conveyancers.
- Never pay duty to bank details sent by email or text without calling your lawyer on a number you already have.
- If you’re unsure, call us before you pay anything.
Exemptions and concessions
Some transactions are exempt from duty, or pay reduced duty. Common ones include:
- first home buyers, as explained above
- transfers between spouses and de facto partners of their home
- transfers after a marriage or relationship breaks down
- transfers from a deceased estate.
Each has strict conditions. Revenue NSW lists them on its exemptions and concessions page. If you’re adding a partner to the title, our guide to joint tenants vs tenants in common is a useful starting point.
Before you sign
- Work out your duty with the Revenue NSW calculator, and add it to your budget.
- Check whether you qualify for the First Home Buyers Assistance Scheme or another concession.
- If you’re not an Australian citizen, check whether surcharge purchaser duty applies.
- If you want a long settlement, plan to have the duty ready 3 months after exchange.
- Ask us to confirm the duty before you exchange.
Our step-by-step guide to buying in NSW shows where duty fits in the process. Buying interstate? See our guides to stamp duty in Victoria and stamp duty in Queensland.
Frequently asked questions
How much is stamp duty on a $1 million home in NSW?
At the 2026-27 rates, $39,187 for an Australian buyer with no concession. That’s $11,602 plus $4.50 for every $100 over $387,000.
When do I pay stamp duty in NSW?
By the earlier of settlement and 3 months after you sign the contract. If your settlement is longer than 3 months, you’ll need to pay before you settle.
Does the seller pay any stamp duty?
No. Transfer duty is paid by the buyer.
Can I add stamp duty to my home loan?
Some lenders will lend more to cover costs, but many won’t. Most buyers pay duty from their own savings, so check with your lender early.
Do first home buyers pay stamp duty in NSW?
Not on a home worth $800,000 or less, or vacant land worth $350,000 or less, if they meet the scheme’s rules. Reduced duty applies up to $1 million for homes and $450,000 for land.
Buying in NSW?
Talk to our property team
Property & Conveyancing
Our team can confirm your duty and any concessions before you exchange, lodge it with Revenue NSW and handle your purchase through to settlement.
This article is general information only and is not legal advice. It reflects NSW law at the date of publication. Please contact us for advice about your circumstances.
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