NSW Stamp Duty 2026-27: Rates, First Home Buyer Exemption and Foreign Surcharge
NSW transfer duty (commonly called stamp duty) is the largest upfront cost most home buyers face in Sydney and regional NSW — and it is CPI-indexed every July. For FY2026-27, the rate tiers have been adjusted upward. For a median-priced Sydney property around $1,200,000, stamp duty is approximately $48,200 without concessions. First-home buyers purchasing under $800,000 can pay zero stamp duty, making the concession system the single most valuable pathway for getting into the NSW property market.
NSW transfer duty rates for FY2026-27 (residential):
- Up to $18,000: 1.25% of the dutiable value
- $18,001–$38,000: $225 plus 1.5% of the amount over $18,000
- $38,001–$103,000: $525 plus 1.75% of the amount over $38,000
- $103,001–$387,000: $1,662 plus 3.5% of the amount over $103,000
- $387,001–$1,290,000: $11,602 plus 4.5% of the amount over $387,000
- $1,290,001–$3,870,000: $52,237 plus 5.5% of the amount over $1,290,000
- $3,870,001 and above (premium residential): $194,137 plus 7% of the amount over $3,870,000
For a $700,000 property: duty is $11,602 plus 4.5% of ($700,000 minus $387,000) = $11,602 plus $14,085 = $25,687. For a $1,500,000 property: $52,237 plus 5.5% of ($1,500,000 minus $1,290,000) = $52,237 plus $11,550 = $63,787.
First Home Buyers Assistance Scheme (FHBAS): full exemption up to $800,000
NSW’s FHBAS is the most impactful concession for first-home buyers. New and existing homes (not just new builds) priced at $800,000 or below are fully exempt from transfer duty — you pay zero stamp duty. Between $800,001 and $1,000,000, the exemption phases out on a sliding scale, meaning you still receive a partial reduction. Above $1,000,000, no FHBAS concession applies.
For vacant land intended for building a first home: the threshold is $350,000 for full exemption, phasing out up to $450,000. This is critical for buyers planning a house-and-land package or a knock-down rebuild — the land-only duty treatment under FHBAS can save tens of thousands of dollars compared to paying duty on the completed home.
There are eligibility conditions: at least one buyer must be an Australian citizen or permanent resident, must move into the home within 12 months of settlement (or completion for new builds), and must live in it continuously for at least six months. The FHBAS cannot be combined with the First Home Owner Grant for the same property — you choose whichever is more valuable. For most buyers in the $600,000–$800,000 range, the FHBAS saving ($25,000–$31,000 in duty) far exceeds the $10,000 FHOG.
First Home Owner Grant: $10,000 for new homes
The NSW FHOG is $10,000 and applies to newly built homes (never previously occupied) with a purchase price up to $600,000, or for owner-builder construction where the total value (land plus building) does not exceed $750,000. It cannot be combined with the FHBAS duty exemption on the same purchase, but a buyer can choose between the two — and for new builds under $600,000, the FHBAS duty saving plus an additional $10,000 effectively means zero duty plus a cash grant.
Foreign purchaser surcharge: 9% additional duty
Foreign purchasers acquiring residential property in NSW pay an additional 9% surcharge duty on top of the standard transfer duty. This surcharge applies to the entire dutiable value — for a $1,200,000 property, the foreign surcharge alone is $108,000, before standard duty. The surcharge applies to individuals who are not Australian citizens or permanent residents, and to foreign corporations and trusts.
There is also a foreign owner land tax surcharge of 4% per annum (in addition to standard land tax), which applies from the settlement date and is assessed each year. For a foreign buyer considering NSW residential property, the combined upfront cost (standard duty plus 9% surcharge) and ongoing annual land tax surcharge should be modelled before making an offer — the total can exceed 15% of the purchase price in the first year alone.
Premium property duty: the 7% top rate
NSW introduced a premium residential property rate of 7% on the portion above $3,870,000. For a $5,000,000 home: duty is $194,137 plus 7% of ($5,000,000 minus $3,870,000) = $194,137 plus $79,100 = $273,237. At this level, duty alone can exceed a 20% deposit on a median-priced Sydney apartment. Buyers at this price point often structure purchases through entities (company or trust) and should obtain specialist tax and legal advice on duty minimization strategies.
How to budget for NSW stamp duty as a first-home buyer
The most common mistake is failing to account for transfer duty in the upfront budget. Duty is payable within three months of settlement (or exchange, if the agreement is dated) and must be paid in cleared funds before the title can be transferred. It is not added to the loan unless you have specifically arranged for stamp duty to be capitalised, and most lenders treat duty as a separate settlement cost that the borrower must fund from savings.
A practical budgeting sequence: first, determine whether you qualify for the FHBAS and what your expected duty will be after the concession. Second, add the duty amount to your deposit savings target — if you have $80,000 saved and the duty is $25,000, your effective deposit for the loan is $55,000 (plus the difference between purchase price and loan). Third, check with your lender or mortgage broker whether any stamp duty cost can be capitalised into the loan as part of a higher-LVR product.
Information sources
All NSW transfer duty rates, FHBAS thresholds, FHOG amounts and foreign surcharge percentages in this article are sourced from Revenue NSW as at July 2026. Rates are CPI-indexed each July. Concession eligibility criteria are per the Duties Act 1997 (NSW) and Revenue NSW administrative guidance. Always confirm current rates and eligibility on the Revenue NSW website or with a licensed conveyancer before committing to a purchase.
Frequently asked questions
Can I get both the FHBAS exemption and the FHOG?
No, you cannot receive both on the same property. You choose whichever is more valuable. For new homes under $600,000, the FHBAS duty exemption usually saves more than $10,000, and there is also a separate option to receive the FHOG — but not both for the same property.
Does the FHBAS apply to existing homes or only new builds?
The NSW FHBAS applies to both new and existing (established) homes, provided the purchase price is $800,000 or below for full exemption. This is a significant benefit compared to some other states that limit first-home concessions to new builds only.
What if I’m buying with a partner who has owned property before?
If any purchaser has previously owned residential property in Australia (including as a joint tenant or tenant in common), the FHBAS generally does not apply. The eligibility test looks at all purchasers — if one has previously owned property, all purchasers lose eligibility.
How is duty calculated for off-the-plan purchases?
For off-the-plan purchases, duty is generally calculated on the contract price minus the cost of construction work to be completed after the contract date, provided certain conditions are met. This can substantially reduce the dutiable value and the duty payable, making off-the-plan an attractive option for first-home buyers and investors in NSW.
Next step: calculate your NSW stamp duty and borrowing power
Transfer duty is one of the three largest upfront costs in an NSW property purchase, alongside the deposit and mortgage setup costs. To get an accurate duty estimate and see how it fits into your full borrowing capacity, speak with an Arrivau licensed mortgage consultant — we respond within one business day.
General information disclaimer
This article is general information only and is not personal financial, tax, legal or credit advice. NSW transfer duty rates, concessions and thresholds can change. Arrivau Pty Ltd (ABN 81 643 901 599) provides credit assistance as an ASIC Credit Representative, CRN 530978. Obtain independent legal and duty advice from a licensed NSW conveyancer or solicitor before purchasing property.