NSW Stamp Duty 2026-27: Rates, First Home Buyer Exemptions & Foreign Surcharge

NSW stamp duty — officially called transfer duty — is a state government tax levied on property purchases in New South Wales. For the 2026-27 financial year, Revenue NSW has indexed the duty thresholds to CPI, meaning the brackets have shifted slightly from the prior year. The tax operates on a sliding scale: properties valued at $18,000 or less attract a modest 1.25%, while a premium residential property above $3,870,000 incurs a base of $194,137 plus 7% on the excess. First home buyers are the biggest winners under current policy — if your first home costs $800,000 or less, you pay zero stamp duty under the First Home Buyers Assistance Scheme (FHBAS), with a partial concession available for properties up to $1,000,000. Foreign purchasers face an additional 9% surcharge on top of the base duty. An investor buying a $1,500,000 Sydney home would pay approximately $63,787 in transfer duty, while a first home buyer at $750,000 pays nothing. This guide sets out every rate bracket for 2026-27, explains the concessions in detail, and works through four real-world examples so you know exactly what to budget.

NSW Stamp Duty Rates 2026-27

The transfer duty rates for the 2026-27 financial year are indexed annually by Revenue NSW in line with the Sydney Consumer Price Index. Each bracket applies a different rate to the portion of the dutiable value falling within that range — the tax is not a flat percentage of the total price.

For properties with a dutiable value of $18,000 or less, the rate is 1.25% of the total value, with a minimum duty of $10. Between $18,001 and $38,000, you pay a fixed $225 plus 1.5% on every dollar above $18,000. For values from $38,001 up to $103,000, the fixed component rises to $525, and you add 1.75% of the amount exceeding $38,000.

The next bracket, covering $103,001 to $387,000, applies a fixed amount of $1,662 plus 3.5% of the excess over $103,000. Once the dutiable value crosses $387,000 — which captures the vast majority of Sydney purchases — the formula becomes $11,602 plus 4.5% of the value above $387,000. This bracket runs all the way up to $1,290,000.

For purchases between $1,290,001 and $3,870,000, you are looking at a base of $52,237 plus 5.5% on the amount above $1,290,000. At the premium end — residential property valued above $3,870,000 — the duty is $194,137 plus 7% on every dollar beyond that threshold.

It is worth noting that these brackets apply uniformly whether you are buying an established house, a new apartment, vacant land, or an off-the-plan unit. The dutiable value is generally the purchase price, though Revenue NSW may assess a different value in certain related-party or non-arm’s-length transactions. For off-the-plan purchases, the duty is calculated on the contract price, and you may be eligible for a deferral of up to 12 months if the property will be your principal place of residence.

For a quick sense of scale: an investor buying a $650,000 Sydney apartment would calculate duty as $11,602 plus 4.5% of $263,000 — which comes to $23,437. At $1,100,000, the calculation is $11,602 plus 4.5% of $713,000, yielding $43,687. These are material costs that sit on top of your deposit, legal fees, and moving expenses, so factoring stamp duty into your budget from day one is essential. Our companion article on stamp duty across all Australian states provides a broader national comparison if you are also considering purchasing interstate.

First Home Buyer Exemptions — The FHBAS

The First Home Buyers Assistance Scheme (FHBAS) is the single most valuable stamp duty concession available in NSW. It was significantly expanded in recent years and, for the 2026-27 financial year, continues to offer full exemption from transfer duty for eligible first home buyers purchasing a new or existing home valued at $800,000 or less.

To qualify, you must be an individual (not a company or trust), at least 18 years old, and purchasing the property as your principal place of residence. You or your spouse or partner must never have owned residential property in Australia before — this includes investment properties and properties owned jointly. You must move into the home within 12 months of settlement and live there for at least six continuous months.

If your property falls in the $800,001 to $1,000,000 range, a partial concession applies. The reduction is calculated on a linear sliding scale: the closer your purchase price is to $800,000, the larger the discount. At $900,000, you receive roughly half the full benefit; at $950,000, approximately 25% of the exemption remains; and at $1,000,000, the concession phases out entirely. We walk through the exact arithmetic in the worked examples section below.

Vacant land purchases are also covered under the FHBAS. If you are a first home buyer purchasing a block of vacant residential land on which you intend to build your principal place of residence, you pay no stamp duty if the land value is $350,000 or less. Between $350,001 and $450,000, a partial concession is available. You must commence construction within 26 weeks and complete the dwelling within 30 months.

The First Home Owner Grant (FHOG)

Separate from the FHBAS is the First Home Owner Grant — a $10,000 cash payment for eligible first home buyers purchasing or building a new home. The key distinction is that the FHOG applies only to new homes (never previously occupied) valued at $600,000 or less, or to a house-and-land package where the combined value of the land and construction is $750,000 or less.

Unlike the stamp duty concession, the FHOG is a payment you receive — it can go towards your deposit, settlement costs, or any other purpose. You claim it through an approved agent (typically your lender or solicitor) at the time of settlement. Many first home buyers in Sydney’s outer suburbs and regional NSW combine both the FHBAS full exemption and the $10,000 FHOG when purchasing a newly built home under $600,000, making the upfront cost of entry dramatically lower. We cover the full picture of all upfront costs in our first home buyer total costs guide.

Foreign Buyer Surcharge — 9% Explained

Foreign persons purchasing residential property in NSW are subject to an additional surcharge purchaser duty of 9% of the dutiable value of the property. This is charged on top of the standard transfer duty rates outlined above. The surcharge applies to individuals who are not Australian citizens, not permanent residents, and not New Zealand citizens holding a special category visa (subclass 444). It also applies to foreign corporations and trusts.

For the avoidance of doubt: a foreign buyer purchasing a $1,000,000 Sydney apartment pays both the standard duty and the 9% surcharge. The standard duty on $1,000,000 is $11,602 plus 4.5% of $613,000, which equals $39,187. On top of that, the 9% surcharge adds $90,000. The total stamp duty bill comes to $129,187 — more than triple what an Australian resident would pay on the same property.

The surcharge is assessed at the time of exchange or settlement, and Revenue NSW applies a residency test that looks at your visa status and the number of days you have been physically present in Australia in the 12 months prior to purchase. Temporary residents who later obtain permanent residency may be eligible for a refund of the surcharge if they meet certain conditions, including occupying the property as their principal place of residence.

It is also worth noting that foreign owners of residential land in NSW pay a 4% land tax surcharge annually, separate from the one-off stamp duty surcharge. For foreign investors holding a $1,000,000 property with a land value of $600,000, this means an additional $24,000 per year in land tax surcharge alone. We examine the foreign buyer landscape in more detail in our dedicated article on the foreign buyer stamp duty surcharge across Australia.

Given the complexity of surcharge liability and the refund provisions, foreign buyers should seek a personalised assessment before exchanging contracts. Speak with an Arrivau mortgage adviser for a personalised assessment. We respond within one business day.

Worked Examples

The following four examples illustrate exactly how NSW stamp duty applies across different buyer scenarios in the 2026-27 financial year. All calculations use the official Revenue NSW rate brackets.

Example 1: First Home Buyer — $750,000 Property

A first home buyer purchasing an established apartment in Parramatta for $750,000. Because the purchase price is below the $800,000 FHBAS full exemption threshold, no transfer duty is payable. The buyer pays $0 in stamp duty. This is a saving of $27,937 relative to the standard rate that an investor would pay on the same property.

Standard duty calculation (for reference): $11,602 plus 4.5% of $363,000 (the amount above $387,000) equals $11,602 plus $16,335, totalling $27,937. Under the FHBAS, this entire amount is waived.

Example 2: First Home Buyer — $950,000 Property

A first home buyer purchasing a townhouse in the Inner West for $950,000. The property exceeds the $800,000 full exemption cap but falls within the $800,000 to $1,000,000 concessional range. First, we calculate the standard transfer duty: $11,602 plus 4.5% of $563,000 (the amount above $387,000). This gives $11,602 plus $25,335, yielding $36,937.

The FHBAS partial concession is calculated on a linear phase-out. The formula is the proportion of the $200,000 phase-out band that remains below your purchase price. At $950,000, the remaining gap to the $1,000,000 cap is $50,000. Dividing this by the $200,000 band gives 0.25, or 25%. This means 25% of the duty is still exempted. The buyer therefore pays 75% of the full duty: $36,937 multiplied by 0.75 equals $27,703.

To put it another way, the FHBAS saves this buyer $9,234 compared to what an investor would pay at the same price.

Example 3: Investor — $1,500,000 Property

An Australian resident investor purchasing a house in the Upper North Shore for $1,500,000. This price falls into the $1,290,001 to $3,870,000 bracket. The standard transfer duty is $52,237 plus 5.5% of the amount above $1,290,000.

The excess is $1,500,000 minus $1,290,000, which is $210,000. Five point five per cent of $210,000 is $11,550. Adding the fixed component gives $63,787. No concessions apply — this is the total stamp duty payable at settlement.

This investor should also factor in that stamp duty is not tax-deductible against rental income, though it can be added to the property’s cost base for capital gains tax purposes when the property is eventually sold. For a broader look at investment strategies in Sydney, see our first home buyer guide and Sydney property market overview.

Example 4: Foreign Buyer — $800,000 Property

A foreign person (temporary resident on a work visa) purchasing a new apartment in Zetland for $800,000. The standard transfer duty is calculated first: $11,602 plus 4.5% of $413,000 (the amount above $387,000). This gives $11,602 plus $18,585, totalling $30,187.

The foreign purchaser surcharge of 9% is applied to the full dutiable value of $800,000, adding $72,000. The total stamp duty bill is $30,187 plus $72,000, which equals $102,187.

For perspective, an Australian resident investor buying the same property would pay $30,187. The foreign buyer pays an additional $72,000 — more than triple the base duty. This example underscores why foreign purchasers must budget carefully and obtain FIRB approval (which carries its own application fees) well before exchange. Our foreign buyer surcharge comparison covers the national picture.

How to Pay NSW Stamp Duty

Stamp duty is generally payable within three months of settlement for most residential purchases. For off-the-plan properties, the deadline may be extended — typically three months from the date of completion or 15 months from exchange, whichever is earlier, provided you intend to occupy the property as your principal place of residence.

The payment process is integrated into the conveyancing workflow. Your solicitor or conveyancer lodges the contract and transfer documents with Revenue NSW through the Electronic Duties Returns (EDR) system. Revenue NSW assesses the duty and issues a Notice of Assessment. Payment can be made electronically via BPAY, EFT, or through your legal representative’s trust account. Most buyers route the funds through their conveyancer, who disburses the duty at settlement alongside the purchase price.

Late payment attracts interest at the market rate plus a premium — currently running above 11% annually. Revenue NSW can also impose penalty tax if the duty is not paid within the prescribed timeframe, so ensuring funds are available at settlement is critical. Stamp duty must come from your own cash reserves; most lenders will not capitalise it into the home loan, meaning it needs to be budgeted as a separate upfront cost alongside your deposit, legal fees, and building inspection costs.

If you are buying off-the-plan and eligible for a deferral, confirm the arrangement with your conveyancer in writing before exchange. The deferral is not automatic — it must be applied for. Revenue NSW provides an online calculator on its website where you can estimate your liability, including any FHBAS or FHOG entitlements, before committing to a purchase.

FAQ

Can I add stamp duty to my home loan?

Generally, no. Most Australian lenders require stamp duty to be paid from your own funds at settlement. Some lenders offer a “stamp duty capitalisation” arrangement for very strong borrowers, effectively increasing the loan amount to cover the duty, but this is uncommon and reduces your equity from day one. Budgeting for stamp duty as a separate cash expense is the standard approach.

Does the FHBAS apply to investment properties?

No. The First Home Buyers Assistance Scheme requires the property to be your principal place of residence. You must move in within 12 months of settlement and live there for at least six continuous months. If you purchase with the intention of letting the property out, you are not eligible for any FHBAS benefit. The FHOG also requires owner-occupation.

Can permanent residents claim the foreign surcharge refund?

Yes, in certain circumstances. If you were a temporary resident when you purchased and subsequently become a permanent resident, you may be eligible for a refund of the foreign purchaser surcharge — provided you occupy the property as your principal place of residence and meet Revenue NSW’s specific criteria. This is not automatic; you must apply and provide supporting documentation. Given the dollar amounts involved (the surcharge can run to tens of thousands of dollars), this is a refund worth pursuing.

What if I am buying with a partner — does the FHBAS still apply?

Yes, joint purchasers can claim the FHBAS provided both parties meet the eligibility criteria. If only one of you is a first home buyer and the other has previously owned property, the exemption generally does not apply. There are limited exceptions for breakdowns of marriage or de facto relationships where a court order transfers the former home to one party. If your co-purchaser is not your spouse or partner, seek specific advice from a licensed conveyancer before exchange.

Data Sources & Important Notice

The rate thresholds and concession caps in this article are sourced from Revenue NSW and reflect the 2026-27 financial year, effective from 1 July 2026. The standard transfer duty brackets are CPI-indexed annually. FHBAS exemption and concession thresholds are set by NSW government policy and are subject to legislative change. FHOG amounts and eligibility criteria are current as of July 2026. Foreign purchaser surcharge rates are set under the Duties Act 1997 (NSW).

This article provides general information only and does not constitute financial, legal, or tax advice. Property purchases involve significant financial commitments and individual circumstances vary. Always consult a licensed conveyancer or solicitor for legal advice specific to your transaction, and a qualified financial adviser before making decisions about borrowing, structuring, or tax planning.

Speak with an Arrivau mortgage adviser for a personalised assessment. We respond within one business day.

This article provides general information only and does not constitute financial advice. All rates and thresholds are sourced from Revenue NSW as at July 2026. Individual eligibility for concessions and exemptions depends on your specific circumstances. You should consult a licensed conveyancer or solicitor before making any property purchase decision. Arrivau Credit Licence Number: pending.