Stamp duty explained: what it is, who pays, and how much

Stamp duty — officially called transfer duty in most states — is usually the largest single cost of buying property after the deposit itself, and it regularly surprises first-time buyers who budgeted only for the deposit. Here is how it works, why the answer is always "it depends on your state", and how to estimate your own bill with our [stamp duty calculator](/calculators/stamp-duty).

What stamp duty actually is

Transfer duty is a state government tax on the transfer of property. The buyer pays it, calculated on the dutiable value of the property — generally the higher of the purchase price or market value. It is a one-off tax, separate from your loan, your deposit, and ongoing costs like council rates. Because it is levied by states and territories rather than the Commonwealth, every jurisdiction has its own rates, thresholds, concessions and even names for the same thing.

How the amount is calculated

Every state uses a sliding scale: the duty rate rises through value brackets, so more expensive properties attract a higher percentage overall. On a typical established home, duty commonly works out somewhere in the low single digits as a percentage of the price — enough to be tens of thousands of dollars on a median-priced property in the larger capitals. Surcharges can apply on top for foreign purchasers, and some states apply different treatment to investment purchases versus a home you will live in. The precise brackets change with state budgets, which is why we will not print a rates table here — it would quietly go stale. Use the [calculator](/calculators/stamp-duty) for a current estimate and confirm with your state revenue office before relying on a figure.

It is state-based — and it changes

This is the single most important thing to understand about stamp duty: the rules are set state by state and adjusted regularly, sometimes mid-year. As at July 2026, each state and territory maintains its own thresholds, first home buyer concessions and payment deadlines. Always confirm the current position with the official source for your state:

• NSW: [Revenue NSW](https://www.revenue.nsw.gov.au)
• VIC: [State Revenue Office Victoria](https://www.sro.vic.gov.au)
• QLD: [Queensland Revenue Office](https://qro.qld.gov.au)
• WA: [RevenueWA](https://www.wa.gov.au/organisation/department-of-finance/revenuewa)

Other states and territories have equivalent revenue offices; a search for your state's name plus "transfer duty" will find the official page. Treat any figure you read on a non-government website — including ours — as an estimate to verify.

First home buyer concessions

Every state offers some form of stamp duty relief for eligible first home buyers — typically a full exemption below one price threshold and a partial concession up to a higher one. Eligibility rules commonly cover things like living in the property for a minimum period, being a first-time purchaser, and citizenship or residency status, and the thresholds differ significantly between states. Some states also treat vacant land and new builds differently from established homes. These concessions can be worth a great deal, so if you are buying your first home, check your state's current rules early — they may shape which price bracket you shop in. Our [first home buyer loans page](/loans/first-home-buyers) and state-specific grant guides cover the wider package of assistance, and federal scheme settings are published by [Housing Australia](https://www.housingaustralia.gov.au).

When and how you pay

Duty is generally payable at or before settlement — in most states it is paid through the conveyancing process, with your conveyancer or solicitor arranging lodgement and payment, commonly via the electronic settlement platform. Deadlines vary by state (and can differ for off-the-plan purchases, where some states allow duty to be deferred). Practically, this means the money must be available in cleared funds at settlement, alongside your deposit shortfall and other costs. Your conveyancer will give you a settlement statement that itemises it; our [settlement process guide](/articles/credit-and-approval/settlement-process-guide) walks through where duty fits in the timeline.

Budgeting for duty: the bit that catches people out

Stamp duty usually cannot be borrowed as part of a standard home loan — it comes out of your cash savings on top of the deposit. That has a knock-on effect on your loan-to-value ratio: if you have $150,000 saved, the duty bill reduces what is left for the deposit, which raises your LVR and can push you over the 80% threshold where LMI applies. When you set your budget, work backwards: savings, minus duty and costs (conveyancing, inspections, adjustments), equals your true deposit. Then check the resulting LVR with our [LVR and LMI calculator](/calculators/lvr-lmi). Buyers borrowing at higher LVRs should run this early — a duty bill discovered late can unwind a purchase plan.

Common questions of scope

A few clarifications that come up constantly: duty applies to the property transfer, not the loan (mortgage duty on loans has been abolished for standard home loans); refinancing your existing home loan does not trigger transfer duty because the property is not changing hands; and transfers between spouses, deceased estates and family arrangements have their own concessional rules that vary by state and deserve specific advice from a conveyancer. Investors should also keep the duty assessment with their records: it usually forms part of the property's cost base for capital gains tax purposes when they eventually sell, which makes the paperwork worth filing properly on day one.

Talk it through with a broker

Duty, deposit, LMI and loan size all interact — getting the structure right before you make an offer is far easier than fixing it after. [Get in touch](/contact) and we will help you build a purchase budget that has no surprises in it.