In short
- First home buyers pay no stamp duty on a home valued up to $800,000.
- Between $800,000 and $1 million you pay reduced duty that rises evenly to the full amount.
- For vacant land, the limits are $350,000 (no duty) and $450,000 (reduced duty).
- On an $850,000 home, a first home buyer pays $9,797 instead of $32,437.
How stamp duty works in NSW
Stamp duty, which Revenue NSW calls transfer duty, is a one-off tax you pay when you buy property. It's calculated on the property's dutiable value: the higher of the price you agreed to pay and its market value.
The rate rises in steps as the value goes up. These are the rates for contracts dated 1 July 2026 to 30 June 2027:
| Dutiable value | Duty |
|---|---|
| $0 – $18,000 | $1.25 per $100 (minimum $20) |
| $18,001 – $38,000 | $225 + $1.50 per $100 over $18,000 |
| $38,001 – $103,000 | $525 + $1.75 per $100 over $38,000 |
| $103,001 – $387,000 | $1,662 + $3.50 per $100 over $103,000 |
| $387,001 – $1,290,000 | $11,602 + $4.50 per $100 over $387,000 |
| $1,290,001 – $3,870,000 | $52,237 + $5.50 per $100 over $1,290,000 |
| Over $3,870,000 | $194,137 + $7.00 per $100 over $3,870,000 |
For example, standard duty on an $850,000 home is $11,602 plus 4.5% of the $463,000 above $387,000, which comes to $32,437. NSW uses the same scale for owner-occupiers and investors. The thresholds rise with inflation every 1 July.
The first home buyer exemption and concession
Under the First Home Buyers Assistance Scheme, eligible buyers get:
- A full exemption on a new or existing home valued at $800,000 or less.
- Reduced duty on a home valued above $800,000 and below $1,000,000.
- The same for vacant land, with limits of $350,000 and $450,000.
How the reduced rate is worked out
Between $800,000 and $1 million, the saving shrinks evenly. Halfway through the band, at $900,000, you save half of what duty on an $800,000 home would be. The formula is:
$30,187 is the standard duty at $800,000 for 2026–27.
First home buyer duty at common prices
| Price | Standard duty | First home buyer | You save |
|---|---|---|---|
| $600,000 | $21,187 | $0 | $21,187 |
| $700,000 | $25,687 | $0 | $25,687 |
| $800,000 | $30,187 | $0 | $30,187 |
| $850,000 | $32,437 | $9,797 | $22,640 |
| $900,000 | $34,687 | $19,594 | $15,093 |
| $950,000 | $36,937 | $29,390 | $7,547 |
| $999,000 | $39,142 | $38,991 | $151 |
Watch the $1 million line. At $999,000 you still get a small saving. At $1,000,000 you pay the full $39,187, so negotiating just under the limit is worth it.
Who is eligible
To qualify for the First Home Buyers Assistance Scheme:
- You must be buying as an individual (not a company or trust) and be at least 18.
- Neither you nor your spouse or partner can have owned residential property in Australia before.
- Neither of you can have received the exemption or concession before.
- At least one buyer must be an Australian citizen or permanent resident.
- For a home, at least one buyer must move in within 12 months of settlement and live there for 12 continuous months.
If you buy with someone who isn't eligible, you may still qualify for part of the benefit, as long as eligible buyers own at least half the property and the other buyer isn't your spouse.
Foreign buyers
Foreign purchasers pay surcharge purchaser duty of 9% of the dutiable value on top of standard duty. Being eligible for the first home buyer scheme doesn't remove the surcharge.
How to claim it
- After you exchange contracts, complete the First Home Buyers Assistance Scheme application and the purchaser declaration.
- Give them to your conveyancer or solicitor with your proof of identity.
- They apply the exemption or concession when they lodge your duty with Revenue NSW.
Plan the whole purchase in one spreadsheet
Stamp duty, upfront costs, repayments, your monthly budget and a savings plan, with a dashboard that updates as you go.
Common questions
Do first home buyers pay stamp duty in NSW?
Not if the home is valued at $800,000 or less and you qualify for the First Home Buyers Assistance Scheme. Between $800,000 and $1 million you pay reduced duty, and from $1 million you pay the full amount.
When is stamp duty due in NSW?
Within three months of exchanging contracts, or at settlement if that comes first. Your conveyancer or solicitor usually lodges and pays it for you.
Is the $800,000 limit based on the price or the value?
Duty is worked out on the dutiable value, which is the higher of the price you pay and the property's market value.
Can I get the exemption on vacant land?
Yes. First home buyers pay no duty on vacant land valued at $350,000 or less, and reduced duty below $450,000, if they plan to build a home to live in.
Do I have to live in the home?
Yes. For contracts from 1 July 2023, at least one buyer must move in within 12 months of settlement and live there for at least 12 continuous months.
Is the First Home Owner Grant the same as the stamp duty exemption?
No. The $10,000 First Home Owner (New Homes) Grant is a separate cash payment for new homes up to $600,000, or land and build up to $750,000. Eligible buyers can get both.