Buying property in New South Wales often comes with a cost that catches buyers off guard. Stamp duty can add tens of thousands of dollars to a purchase, yet many buyers only factor it in late in the process. That can place pressure on savings, delay settlements or force last-minute changes to loan plans.

This guide breaks down stamp duty in NSW, explains how it applies to different buyers and shows how to plan for it earlier. By understanding the rules and using the right tools, buyers can make more informed decisions before committing to a purchase.

How does stamp duty work in NSW?

Stamp duty is a state government tax charged when ownership of a property changes hands. In NSW, it is commonly referred to as transfer duty. The amount payable is based on the value of the property and is paid by the buyer, not the seller.

Stamp duty in NSW applies to most residential property purchases, including established homes, off-the-plan properties and vacant land. It is assessed separately from other buying costs such as deposits, legal fees and lender charges, which is why it often surprises buyers who focus mainly on their loan amount.

In New South Wales, transfer duty is governed by the Duties Act 1997. This legislation sets out when stamp duty applies, how it is calculated and what exemptions or concessions may be available. 

Because stamp duty is based on property value rather than borrowing amount, buyers can face higher upfront costs even if their loan size remains manageable. Factoring this cost into early planning allows buyers to assess affordability more accurately and avoid unexpected pressure closer to settlement.

Knowing when stamp duty applies

Stamp duty generally applies when a property transaction is completed and ownership is transferred. This includes:

• Buying an established residential property
• Purchasing vacant land
• Entering an off-the-plan contract

In some cases, exemptions or concessions may reduce or remove the amount payable. These are most commonly available to eligible first-home buyers, although strict criteria apply.

Timing stamp duty payments correctly

Stamp duty in NSW must be paid within three months of the contract date or on settlement, whichever comes first. Understanding this timing is critical, as missing the deadline can result in interest charges and penalties.

Stamp duty is not typically paid at exchange, but it must be factored into settlement funds. This means buyers need to have sufficient cash available at settlement, separate from their deposit and loan funds.

Because payment timing is fixed, leaving stamp duty planning until late in the buying process can create unnecessary pressure. Confirming payment deadlines early helps buyers avoid last-minute funding issues and keeps settlement on track.

How to calculate stamp duty in NSW

How stamp duty is calculated in NSW depends on the value of the property rather than the size of the loan. The NSW government uses a tiered rate system, which means different portions of the property value are taxed at different rates.

Stamp duty is usually calculated on the higher of the purchase price or the market value of the property. This prevents under-reporting and ensures the duty reflects the true value of the transaction.

For example, if a buyer purchases a property for $850,000, the total stamp duty payable is calculated by applying one rate to the first portion of the property value and higher rates to the remaining portions above each threshold. Each segment of the price is taxed separately, then added together to reach the final amount.

Because rates are tiered, the final amount is not a flat percentage of the purchase price. This is why manual estimates are often inaccurate, and why understanding how stamp duty works in NSW is important before making financial commitments.

Using a calculator helps buyers apply the correct rates automatically and provides a clearer picture of total upfront costs before moving forward.

NSW stamp duty rates and thresholds

NSW stamp duty rates are structured across value brackets. As the property price increases, higher portions of the value are taxed at higher rates. These thresholds are reviewed periodically and may change over time.

Each year, the threshold amounts for standard transfer duty and premium duty rates are adjusted for inflation in line with the consumer price index. This means stamp duty amounts can change even if property prices remain stable.

Rates can also differ depending on whether the property is owner-occupied or purchased as an investment. Because of these variations, relying on outdated tables or general advice can lead to incorrect budgeting and unexpected costs.

Checking current thresholds and using up-to-date calculation tools helps buyers work with accurate figures before making property decisions.

First home buyer exemptions and concessions in NSW

NSW offers stamp duty relief to eligible first home buyers through exemptions and concessions. These measures are designed to reduce upfront costs for buyers entering the property market.

NSW stamp duty exemptions may apply when the property value falls below specific thresholds. Concessions may reduce, but not fully remove, the amount payable for properties above the exemption limit.

In NSW, stamp duty rules did not change on 1 October 2025. While the federal Home Guarantee Scheme was updated, NSW stamp duty settings remain in place. Eligible first home buyers can still access a full stamp duty exemption on properties valued up to $800,000, with concessional stamp duty applying for properties valued from $800,000 up to $1 million.

Eligibility depends on factors such as property value, buyer status and intended use of the property. Buyers must meet all criteria to receive these benefits, and applications are typically processed at settlement.

Timing stamp duty payments correctly

Stamp duty in NSW must be paid within three months of the contract date or on settlement, whichever comes first. Understanding this timing is critical, as missing the deadline can result in interest charges and penalties.

Stamp duty is not typically paid at exchange, but it must be factored into settlement funds. This means buyers need to have sufficient cash available at settlement, separate from their deposit and loan funds.

Because payment timing is fixed, leaving stamp duty planning until late in the buying process can create unnecessary pressure. Confirming payment deadlines early helps buyers avoid last-minute funding issues and keeps settlement on track.

Using a stamp duty calculator for NSW

A calculator provides a faster and more accurate way to estimate stamp duty than manual calculations. It accounts for current rates, thresholds and buyer type, reducing the risk of error.

Using a stamp duty calculator helps buyers:

• Estimate costs early in the search process
• Compare different property price points
• Plan savings and cash requirements

Estimate stamp duty in NSW with OurTop10 calculators

Stamp duty can have a significant impact on total property costs, particularly in NSW, where property values are higher in many areas. OurTop10 calculators are designed to support property buyers at different stages of their journey. The stamp duty calculator allows you to estimate transfer duty based on current thresholds, property value and buyer type, giving you a clearer view of upfront government costs before you commit.

Beyond stamp duty, OurTop10 also provides other resources to support broader property planning. Buyers can explore mortgage options through our Sydney mortgage broker comparisons and assess affordability using our borrowing power calculator. Together, these tools help you understand not just stamp duty, but how it fits into your overall buying budget.

Use our tools and resources now to compare property scenarios and plan for total buying costs with clearer expectations.