Stamp duty is one of the largest upfront costs when buying property in NSW — but as a first home buyer, you may not pay any of it. Here's exactly how stamp duty works in 2026 and what you'll actually pay.
$0
FHB stamp duty <$800K
$31K
Max saving (under $800K)
$800K
Exemption threshold
$1M
Concession threshold
What Is Stamp Duty?
Stamp duty (officially called transfer duty in NSW) is a state government tax charged when property changes hands. It's calculated as a percentage of the purchase price or property value — whichever is higher. For most established properties, it applies to the purchase price.
Stamp duty is paid by the buyer, typically within 3 months of signing the contract. For most buyers, it represents a significant upfront cost on top of the deposit — which is why the NSW first home buyer exemptions are so valuable.
How Much Is Stamp Duty in NSW in 2026?
For a property buyer who is NOT a first home buyer, NSW stamp duty is calculated on a sliding scale:
| Purchase Price | Stamp Duty Payable |
|---|---|
| $500,000 | $17,990 |
| $700,000 | $26,290 |
| $800,000 | $31,335 |
| $900,000 | $36,585 |
| $1,000,000 | $40,835 |
| $1,200,000 | $57,500 |
Standard buyer (not first home buyer). Figures are approximate — use NSW Revenue stamp duty calculator for exact amounts.
First Home Buyer Stamp Duty Exemption (NSW 2026)
If you're a first home buyer purchasing a property to live in, the NSW government offers significant stamp duty relief:
- Properties under $800,000: Full exemption — $0 stamp duty
- Properties $800,000–$1,000,000: Partial concession on a sliding scale
- Properties over $1,000,000: Standard stamp duty applies — no exemption
The saving for a first home buyer purchasing at $799,000 vs a non-first home buyer at the same price: $31,295 saved. This is a massive reduction in your total upfront costs — effectively money you can put toward your deposit or renovations instead.
Important: New Builds vs Existing Homes
The exemption applies to both new and existing properties for first home buyers. For vacant land where you're building, different thresholds apply: $350,000 for full exemption and $450,000 for partial. Check with your broker or Revenue NSW if you're buying a house-and-land package.
Who Qualifies for the First Home Buyer Stamp Duty Exemption?
To access the exemption, you must meet all of the following criteria:
- Be an Australian citizen or permanent resident
- Be 18 years of age or older
- Have never previously owned or co-owned residential property in Australia
- Be purchasing the property to live in as your principal place of residence
- Move in within 12 months of settlement and live there for at least 6 continuous months
If you're buying jointly (e.g., with a partner), all co-purchasers must be eligible first home buyers for the full exemption to apply. If one person has owned property before, only a partial concession may be available.
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Stamp Duty Concession for Partial Relief ($800K–$1M)
If your purchase price falls between $800,000 and $1,000,000, you receive a partial concession rather than the full exemption. The duty is calculated on a sliding scale that gradually reduces the saving as the price increases toward $1 million.
For example, a purchase at $850,000 might attract stamp duty of approximately $7,000–$12,000 rather than the full ~$33,000 a non-first home buyer would pay. The exact figure is calculated by NSW Revenue — use their online calculator for a precise estimate.
This is still a significant saving, but it changes the calculus on whether buying under $800K is worth waiting for vs purchasing a better property at $850K with partial concession.
Can You Use the FHSS (Super) to Pay Stamp Duty?
No — funds withdrawn under the First Home Super Saver (FHSS) scheme can only be used toward the purchase price of the property, not toward stamp duty or other costs. However, since first home buyers under $800K pay $0 stamp duty in NSW, this distinction is largely irrelevant for most buyers in the typical Western Sydney price range.
When Is Stamp Duty Paid?
For most purchases, stamp duty is due within 3 months of signing the Contract of Sale. For off-the-plan purchases (new builds before completion), you may be able to defer payment until the property is completed — sometimes 12–24 months later. This deferral can significantly help your cash flow while a property is being built.
Your conveyancer handles the stamp duty lodgement and payment as part of the settlement process. The funds are typically drawn from your bank account on settlement day, along with the balance of the purchase price.
Stamp Duty for Investment Properties
If you're buying an investment property (not to live in), none of the first home buyer concessions apply — you pay full stamp duty at the standard rates. This applies even if you're a first home buyer who has chosen to invest rather than owner-occupy. Some buyers consider this when deciding whether to "rentvest" — buy an investment property while continuing to rent where they live. The stamp duty saving opportunity is lost when you use your first purchase as an investment.
NSW vs Other States: How Do We Compare?
NSW has some of the most generous first home buyer stamp duty concessions in the country. Victoria has a full exemption for properties under $600K (lower than NSW). Queensland has a rebate system rather than full exemption. Western Australia and South Australia have smaller thresholds. For buyers in Sydney specifically, the $800K threshold is especially valuable given local property prices.
The combination of the Waived LMI / First Home Guarantee, the stamp duty exemption, and the First Home Owner Grant (for new builds) means some buyers can enter the Sydney market at $750K with under $45,000 total cash required. To find out exactly what you qualify for based on your income and target suburb, speak with the team at Mortgagefy — the assessment is free.
See also: suburb-specific guides for Oran Park, Marsden Park, and Leppington — all areas where the sub-$800K exemption regularly applies.
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