Stamp duty is one of the biggest upfront costs in buying property — and for most Sydney first home buyers it's now zero. The NSW Government's first home buyer stamp duty exemption is one of the most valuable property benefits available in Australia. But the eligibility rules have traps.
This guide covers exactly how the exemption works in 2026, what you'll save at different price points, and the scenarios where buyers assume they qualify but don't.
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The 2026 Rules at a Glance
From 1 July 2023, NSW moved from the previous property value thresholds to the current system:
| Property Value | Stamp Duty for First Home Buyers | Saving vs Standard Rate |
|---|---|---|
| Up to $800,000 | $0 (full exemption) | Full standard duty amount |
| $800,001 – $1,000,000 | Scaled concession | Partial saving |
| Over $1,000,000 | Full standard duty applies | No concession |
How Much Will You Save?
| Purchase Price | Standard Stamp Duty | First Home Buyer Pays | Saving |
|---|---|---|---|
| $500,000 | $17,835 | $0 | $17,835 |
| $600,000 | $22,490 | $0 | $22,490 |
| $700,000 | $26,857 | $0 | $26,857 |
| $800,000 | $31,335 | $0 | $31,335 |
| $900,000 | $35,835 | ~$17,918 | ~$17,918 |
| $1,000,000 | $40,335 | ~$20,168 | ~$20,168 |
Savings at $900K–$1M are approximate based on the scaled concession formula. Exact amounts depend on Revenue NSW's calculation method.
The Scaled Concession ($800K–$1M)
Between $800,001 and $1,000,000, you pay a proportion of the full stamp duty. The concession scales linearly from full exemption at $800,000 to no concession at $1,000,000. The formula is:
Duty Payable = Concession Amount (you pay the concession, not the full duty)
In practice, a $900,000 purchase still saves you roughly $18,000 compared to a non-first-home-buyer.
Who Qualifies?
- You (and all co-buyers) must never have owned residential property anywhere in Australia
- At least one buyer must be an Australian citizen or permanent resident
- You must move into the property as your principal place of residence within 12 months of settlement
- You must occupy the property for at least 6 months continuously within the first year
- Both new and established properties qualify (unlike the FHOG)
- Vacant land qualifies only if you intend to build a home on it
Common Disqualifying Scenarios
1. Spouse previously owned overseas property
Overseas property ownership does NOT disqualify you. The "no previous ownership" rule only applies to residential property in Australia. If your partner owned a home in another country, you can still qualify.
2. Previously owned investment property
If you or your co-buyer ever owned an investment property in Australia — even if you sold it — you are disqualified. Ownership type doesn't matter: investment, principal residence, inherited, gifted.
3. Contract date vs settlement date
For off-the-plan purchases, the exemption eligibility is assessed at the date you sign the contract, not at settlement. If you signed before the current thresholds came into effect, the old rules may apply.
4. Not moving in
If you buy the property as an investment and rent it out from day one, you forfeit the exemption and must repay any benefit received plus interest. Revenue NSW audits this.
5. Buying in a trust or company
The property must be purchased in your personal names. Trust or company structures are not eligible.
How to Claim the Exemption
You don't apply separately for the exemption — it's processed automatically when your solicitor or conveyancer lodges the transfer documents with Revenue NSW. You'll complete a declaration confirming your eligibility as part of the settlement paperwork.
Frequently Asked Questions
our broker team helps Sydney first home buyers understand their full upfront costs — including whether stamp duty applies. Call 0432 634 648 for a free cost breakdown.
Related: First Home Buyer Guides
Do you qualify for stamp duty exemption?
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