Introduction to Stamp Duty NSW 2025
If you’re buying property in New South Wales, stamp duty will likely be one of your largest upfront costs — second only to your deposit. It’s a state government tax applied to property purchases, and understanding how it works, especially in relation to the property price, is essential for budgeting your transaction.
In this guide, we explain what stamp duty is, how it’s calculated, who qualifies for exemptions or concessions, and what’s changing in NSW in 2025.
What Is Stamp Duty?
Stamp duty, also known as transfer duty, is a tax imposed by the NSW Government when you buy real estate, including:
- Residential property (houses, apartments)
- Vacant land
- Commercial property
- Investment properties
- Business assets (specific rates and exemptions may apply)
It must be paid within 3 months of signing the contract (or on settlement if buying off-the-plan with delayed settlement).
How Is Stamp Duty Calculated in NSW?
Stamp duty is calculated based on the dutiable value of the property — usually the greater of the purchase price or market value. Stamp duty rates vary depending on the property's value, with specific calculations such as $5.50 for every $100 for properties worth over certain thresholds.
Here’s a simplified breakdown of the 2025 stamp duty brackets for NSW:
| Property Value | Stamp Duty Payable (Approx.) |
| Up to $650,000 | $0 (if eligible for exemption) |
| $800,000 | ~$30,000 |
| $1,000,000 | ~$40,000 |
| $1,500,000 | ~$67,000 |
| Over $3 million | 7%+ (higher marginal rates apply) |
Always use the NSW Revenue calculator for the most accurate amount.
First Home Buyer Concessions (2025)
As of 2025, eligible first home buyers in NSW may benefit from:
Stamp Duty Exemption
- For properties up to $800,000
Stamp Duty Concession
- Sliding scale discount for properties between $800,000 and $1,000,000
First Home Buyer Assistance Scheme (FHBAS)
- Available for new and existing homes, and some vacant land purchases
- For properties valued at specific amounts, such as $650,000 and later $600,000, the First Home Owner Grant (New Homes) Scheme may apply.
Eligibility is subject to income caps and residency requirements.
It’s important to consider the current market value of the property, as this can affect your eligibility for concessions and exemptions.
Annual Property Tax Option (First Home Buyer Choice)
Under the First Home Buyer Choice initiative (2022–2025), eligible buyers could opt to pay an annual land tax instead of upfront stamp duty.
When considering this option, it’s important to factor in your home loan repayments and how they will be affected by the annual property tax.
This applies to:
- Properties under $1.5 million
- Owner-occupiers only
- Only available for eligible first home buyers
Check for 2025 policy updates, as changes may apply.
Stamp Duty Exemptions
Stamp duty exemptions in New South Wales (NSW) can significantly reduce the upfront costs for eligible home buyers. Here’s what you need to know:
- First Home Buyer Exemptions: If you’re a first home buyer, you may qualify for a full exemption on properties valued up to $650,000. For properties valued between $650,000 and $800,000, a concessional rate applies, reducing the amount of stamp duty you need to pay.
- Eligibility Criteria: To be eligible, you must be an Australian citizen or permanent resident, have never owned a home in Australia, and intend to live in the property as your primary residence.
- Potential Savings: These exemptions can save you anywhere from $10,000 to $25,000 or more, depending on the property’s value.
- Other Exemptions: Beyond first home buyers, exemptions may also apply to property transfers between spouses, transfers from a deceased estate, and transfers for charitable purposes.
- Stay Updated: Stamp duty exemptions are subject to change, so it’s crucial to check the latest rates and eligibility criteria before making a purchase. The NSW government provides a stamp duty calculator to help you determine your eligibility.
- Claiming Exemptions: You can claim these exemptions when lodging your transfer documents with Revenue NSW. Consulting with a financial advisor or conveyancer can help ensure you meet all necessary criteria and maximise your savings.
Stamp Duty Surcharge
For foreign buyers, purchasing residential property in NSW comes with an additional cost known as the surcharge purchaser duty. Here’s a breakdown:
- What Is It?: The surcharge purchaser duty is an extra tax applied to foreign persons buying residential-related property in NSW. This includes individuals, companies, and trusts.
- Rate: The surcharge rate is 8% of the dutiable value of the property, on top of the standard transfer duty rate.
- Purpose: This surcharge aims to discourage foreign investment in NSW residential properties, prioritizing housing availability for Australian residents.
- Applicable Properties: The surcharge applies to all residential property purchases, including houses, apartments, and vacant land.
- Calculating Your Liability: The NSW government offers a stamp duty calculator to help you determine your liability for the surcharge purchaser duty.
- Payment Timeline: Foreign buyers must pay the surcharge within three months of the purchase date. Delays in payment can result in penalties and interest, so timely compliance is essential.
- Consult Professionals: To navigate these regulations and ensure compliance, it’s advisable to consult with a financial advisor or conveyancer.
By understanding these exemptions and surcharges, you can better plan your property purchase in NSW and potentially save a significant amount on stamp duty.
When Do You Pay Stamp Duty in NSW?
- Stamp duty must be paid on or before settlement
- Within 3 months if settlement is not due to occur within 3 months of signing the contract for existing properties
- Within 15 months (or upon settlement) for off-the-plan purchases if you plan to live in it
Payment of stamp duty is usually coordinated by your solicitor or conveyancer at settlement. You may also need to pay transfer other fees associated with the property purchase.
Failure to pay on time may result in interest and penalties.
How Your Conveyancer Helps with Stamp Duty
At Complete Conveyancing Sydney, we help you:
- Calculate exact stamp duty owed based on your contract
- Apply for any eligible exemptions or rebates
- Lodge payment through Revenue NSW
- Coordinate timing with your bank and settlement
We also handle the paperwork and lodge payments with the revenue office on your behalf.
Our services ensure that all aspects of the transfer of land are managed efficiently and in compliance with NSW regulations.
Why Work With Us?
- Experience in first home buyer and investor transactions
- We also have experience in handling transactions involving business assets, ensuring that all specific rates and exemptions are considered.
- Clear explanations of your financial obligations
- Fixed-fee conveyancing with no surprise costs
- Fast, reliable coordination with lenders and Revenue NSW
Our expertise extends beyond NSW, providing insights into how stamp duty and transfer duty rates compare with other states.
Need Help Navigating Stamp Duty?
Let Complete Conveyancing Sydney help you understand what you owe — and ensure nothing is missed. Whether you’re purchasing a home or an investment property, we can help you navigate the complexities of stamp duty. Contact us for expert legal support tailored to NSW property law. For high-value properties, understanding the premium duty rate is crucial, and we provide the expertise to ensure you’re fully informed.
