Last reviewed September 2026 by Megan Birot, Content Editor, OurTop10. Figures checked against the sources named in the article.Stamp duty is the biggest cost of buying a home after the deposit, and for a first home buyer it is also the one most likely to be zero. Every state and territory now runs some form of first home buyer exemption or concession, and in most of them the duty saving is worth more than the grant. On a $750,000 established house in Sydney, for example, a first home buyer pays nothing where anyone else pays around $29,000.
This guide covers how the tax works, what each state does for first home buyers as at September 2026, and how the concession is actually claimed, which is the step people get wrong.
What stamp duty is and how it is worked out
Stamp duty, called transfer duty in some states, is a state tax charged when property changes hands. The buyer pays it. It is calculated on the higher of the purchase price and the property’s market value, on a sliding scale, so the rate rises as the price does. It is separate from any annual land tax or council rates.
Because it is a state tax, every state sets its own rates, its own thresholds and its own rules for first home buyers. A buyer in Brisbane and a buyer in Melbourne on the same price pay different amounts, and get different concessions.
The duty is paid at settlement, through your conveyancer, and it is paid in full. Lenders will not add it to the loan. It comes out of your savings on top of the deposit, which is why the concession matters so much: it can be the difference between needing $80,000 in cash and needing $50,000.
What each state does for first home buyers in 2026
These are the positions as at September 2026. The thresholds move, usually at a state budget, so check the figure with your conveyancer before you rely on it.
- New South Wales. No duty on a first home up to $800,000, new or established. A concession applies between $800,000 and $1 million, tapering to nothing at the top of the range. Detail in our NSW stamp duty guide.
- Victoria. No duty up to $600,000, with a concession between $600,001 and $750,000. Applies to new and established homes.
- Queensland. No duty at all on a new home or an off-the-plan purchase, with no price cap. On an established home the exemption runs to $700,000 and phases out at $800,000. From 1 August 2026 you need to be an Australian citizen or permanent resident to claim it.
- ACT. From 1 July 2026 eligible first home buyers pay no duty, with no income test and no property value cap.
- South Australia. No duty on an eligible new home, off-the-plan purchase or vacant land to build on, with no value cap. Established homes get nothing.
- Western Australia. Duty-free up to $600,000 since 7 May 2026, with a concession up to $800,000.
- Tasmania. The exemption for established homes finished on 30 June 2026 and has not been renewed. First home buyers currently pay full duty on an established home.
- Northern Territory. No first home buyer duty concession at present. The help is the $50,000 HomeGrown Territory grant on a new build.
The pattern is worth noticing. Queensland and South Australia push you towards building new. New South Wales and Victoria cover established homes. Tasmania has gone backwards. If you are choosing between a new build and an established house, run the duty on both before you decide, because in some states the choice is worth $30,000 or more. Our state by state guide to exemptions and concessions has the full thresholds and eligibility rules, and the stamp duty calculator gives you the figure on the property you are looking at.
Who qualifies
The rules differ in the detail but the core tests are the same everywhere:
- You, and anyone buying with you, have never owned residential property in Australia. In most states a partner who has owned before disqualifies the whole purchase, even if they are not on the title.
- At least one buyer is an Australian citizen or permanent resident. Queensland now requires this for the duty concession specifically.
- You move in within 12 months of settlement and live there for a continuous period, usually six or twelve months depending on the state.
- You are buying as an individual, not through a company or trust.
- The price sits under your state’s cap, where one applies.
Break the residence condition, by renting the place out in the first year for instance, and the revenue office can claw the duty back with interest.
How the concession is claimed
This is where money gets lost. The exemption is not automatic. It is claimed on the transfer documents your conveyancer prepares before settlement, usually with a first home buyer declaration attached. If nobody flags that you are a first home buyer before those documents are drawn up, the duty is calculated in full, and you are left applying to the revenue office for a refund after settlement instead of never paying it.
So tell your conveyancer you are a first home buyer the day you engage them, not the week before settlement. Have your ID and proof of citizenship or residency ready, because the declaration needs them. If you are also claiming the First Home Owner Grant, that goes through your lender rather than your conveyancer, and the two claims are separate.
First home buyer upfront costs planner
Deposit is only part of what you need on the day. Enter the price and your deposit, and the stamp duty figure from your state revenue office, to see the total cash required.
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Stamp duty and your loan
Two things trip first home buyers up here.
First, the duty is a cash cost. If you are buying with a 5% deposit under the government’s 5% deposit scheme, you still need the duty on top, unless your state exempts you. On an $800,000 Sydney purchase that is $40,000 for the deposit and $0 for the duty. On the same price in Hobart it is $40,000 plus full duty, which changes the whole sum.
Second, if the lender’s valuation comes in below the price, the duty is still charged on the price. The valuation affects how much you can borrow, not how much duty you pay.
Work both numbers, the deposit and the duty, before you set a price ceiling. Our guide to the best home loans for first home buyers covers the deposit side, and a broker who writes first home buyer loans every week will tell you in a single conversation what the cash position looks like in your state. Our ranked lists for Sydney and Melbourne are reviewed regularly.
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Stamp duty comes out of your savings, not the loan, so it shrinks the buffer you move in with. The cash left after buying calculator shows what is left once duty and every other cost is paid.
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FAQs for Stamp Duty for First Home Buyers
Often not. Every state except Tasmania and the Northern Territory currently exempts eligible first home buyers on at least some purchases: up to $800,000 in NSW, $600,000 in Victoria and WA, $700,000 on an established home in Queensland, and with no cap in the ACT, or on new builds in Queensland and South Australia.
On a sliding scale against the higher of the purchase price and the market value, set by each state. The rate rises with the price, so duty on a $1 million home is more than double the duty on $500,000. Our stamp duty calculator gives the figure for your state.
At settlement, through your conveyancer, in cash. Lenders do not add it to the loan, so it has to come from your savings on top of the deposit.
Your conveyancer claims it on the transfer documents before settlement, with a first home buyer declaration and your ID. Tell them you are a first home buyer on day one. If the duty has already been paid in full, you apply to the state revenue office for a refund instead.
In most states, no. The first home buyer test applies to everyone buying, and usually to a spouse or de facto partner even if they are not going on the title. Check your state’s rule before you sign a contract.
It depends on the state. NSW, Victoria, WA and the ACT cover established homes. Queensland covers established homes up to $700,000 and new homes with no cap. South Australia only exempts new homes and vacant land. Tasmania’s established-home exemption ended on 30 June 2026.
Megan Birot
Content Editor, OurTop10
Megan Birot is OurTop10’s Content Editor. She holds a Certificate IV in Finance and Mortgage Broking (FNS40821) and a Diploma of Finance and Mortgage Broking Management (FNS50322), and checks every guide on the site against current lender policy, government scheme rules and state revenue office thresholds before it goes live.
She also runs the editorial reviews on OurTop10’s broker, accountant, conveyancer and buyer’s agent shortlists, and writes all the media releases for the OurTop10 Reports.