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What is Stamp Duty?
What is Stamp Duty?
Written by
Tina Sendin
Edited by
Ellie Garran
Reviewed by
Sam HymanCompare home loans the easy way
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What is stamp duty and transfer duty?
Long story short
Stamp duty is a hefty tax on your property purchase
It’s a state government tax that can add thousands to your purchase price. You’ll need to budget for it on top of your deposit.
First home buyers can often get a discount or exemption
Most states offer concessions to give first home buyers a leg up. The rules and savings vary state, property value and personal circumstances, so it’s worth checking what’s available where you’re buying.
Building a new home or buying off-the-plan can reduce your stamp duty bill
In these instances, you typically only pay stamp duty on the land only or a reduced dutiable value. This depends on the property’s value and your state’s rules. Remember, concessions are state-specific and do not apply in all states.
What is stamp duty and transfer duty?
Let’s start with the basics.
Stamp duty – which also goes by ‘transfer duty’ in some states – is a special type of tax. It applies to certain purchases and legal agreements, including:
- property purchases
- motor vehicle registration and transfers
- insurance policies
- hire purchase agreements
- transfer of certain shares.
(Keep in mind that not all of the above list apply in all states and territories).
Whether it’s property changing hands or an insurer taking on your risk, these all involve a legal transfer of ownership or responsibility – and that’s what triggers stamp duty depending on the asset and jurisdiction.
Who is required to pay stamp duty?
Most people will end up paying stamp duty when they purchase a property. Like GST or student loans, it’s just one of those things you’ll probably need to pay. This is especially true if you fall into one of the following categories.
Homebuyers
Most folks purchasing a residential property will have to pay stamp duty. That being said, you might be eligible for a concession or exemption if you’re buying your first house or piece of land. Just keep in mind that this depends on the price of the property and where you’re buying it. Each state has price caps, residence requirements, and contract or occupancy deadlines.
Investors
Investment properties also attract stamp duty. In fact, compared to a home in which you plan to live, the stamp duty for investment properties can be higher in some states. And if you’re a foreign buyer, some states also add a surcharge on top. The exact rules and rates depend on where you’re buying.
Family transferees
Stamp duty will usually apply if a family member transfers a property into your name. However, the rules around this also differ between states and territories. Some states offer exemptions or reduced duty for spousal transfers, including during a separation, while others treat transfers to children differently.
Because the rules vary so much, it’s worth checking what applies in your state before you make any decisions.
Business entities
Even faceless corporations can get hit by stamp duty! In most places, duty applies when a company purchases real estate or certain business assets. The big exception here is Victoria, which is in the process of replacing stamp duty with a different tax, called the commercial and industrial property tax.
If a business transfer is on the cards, it’s worth checking the rules in your state, as they can vary a lot.
Foreign purchasers
People buying a residential property from overseas will often pay an additional foreign purchaser duty on top of stamp duty. This being said, exemptions can apply depending on the state and territory.
Now, some good news. If you’ve inherited a home, then you might not be required to pay much (or any) stamp duty. However, that depends on the state, the will not being contested, and the structure of the transfer.
Helpful tip
Remember to factor stamp duty into your home loan application. Some people forget it’s a separate, up-front cost that can’t always be rolled into the mortgage. Talking to your lender or broker about this extra expense from the start helps ensure your total borrowing power covers everything, preventing nasty surprises just before settlement.
Sam Hyman
General Manager – National Sales, Aussie
How much does stamp duty cost?
If you’re a purchaser who’s buying a place to live, then your stamp duty will usually come down to three things:
- how much the property costs
- whether you’re eligible for a concession or exemption
- the state or territory where you buy it.
To get a good idea of how much stamp duty you’ll end up paying in your particular neck of the woods, here are the dollar figures for a property value of $500,000, as of October 2025, based on iSelect’s stamp duty calculator. (Alternatively, give the calculator a quick whirl if you’re after a more personalised estimate.)
| State | Estimated stamp duty |
| NSW | $16,912 |
| QLD | $8,750 |
| VIC | $21,970 |
| SA | $21,330 |
| WA | $17,765 |
| NT | $23,928 |
| ACT | $8,408 |
| TAS | $18,247 |
Source: Indicative stamp duty rates per state and territory from iSelect’s stamp duty calculator (with owner-occupier property value of $500,000, new home for a non-first home buyer), October 2025
Now, if you’d like to know more about stamp duty (or land transfer duty) where you’re buying property, we’ve also put together a detailed breakdown for each state and territory:
What stamp duty exemptions or concessions are available?
If you’re planning to buy an investment property or you’ve done the whole house-buying before (read: not a first-time home buyer), you’ll likely cop the full stamp duty – sorry! But if these don’t apply to you, then we’ve got good news: there might be a concession or incentive available depending on where you live.
It’s worth talking to a solicitor, conveyancer, or even your lender to check if you might be eligible for any of them.
First home buyer stamp duty savings
If it’s your first time buying a home, you could be eligible for a stamp duty exemption or concession. The rules and the amount you save depend on where you’re buying, so it’s worth checking with your state or territory’s government to confirm the costs, duties, and any savings you might qualify for.
Oh, and don’t forget about the First Home Owner Grant (FHOG) – you might be able to snag that alongside your stamp duty savings.
Off-the-plan purchases
Buying off the plan means snapping up a property before it’s actually built. This could be a block of land you’re planning to build on or a unit in a complex that’s still in the works. In some states and situations, these types of purchases often come with stamp duty concessions, depending on the dutiable value of the property.
Stamp duty for new builds
Speaking of ‘block of land’, if you’re buying one to build on, you’ll only pay stamp duty on the land’s value, not the house you build on it. It makes sense, given that stamp duty is a percentage of the value of the property you’re buying at the time you sign on the dotted line.
What makes stamp duty a significant cost?
Discussions about stamp duty can get surprisingly heated. Some people see it as an outdated tax that makes buying a home way too difficult. Others view it as a necessary evil that keeps the property market from overheating.
It’s also tricky to pin down why it’s so expensive. But one big reason is that it brings in a considerable amount of state revenue. For instance, NSW earned $14.4 billion in transfer duty and land tax revenue as of 2023.
That revenue then helps to fund things like access to health care, transport infrastructure and education facilities. Of course, some have argued that replacing stamp duty with land tax might be more effective. But, for the foreseeable future, stamp duty will remain in force for most residential properties.
When do I have to pay stamp duty?
If only stamp duty was something you could defer! Alas, most cases are pretty cut and dry: it’s something you typically pay when the purchase is settled or within 30 to 90 days from the contract, settlement, or assessment date.
Of course, this too can vary quite a bit depending on the state or territory where you buy the property:
- Victoria: 30 days of settlement
- New South Wales: 3 months of signing a contract for sale or transfer
- Queensland: 30 days from when liability arises
- Western Australia: 1 month after duties assessment notice is issued
- Australian Capital Territory: 14 days from registration, assessment, or transfer
- South Australia: Prior to or at the time of settlement
- Northern Territory: 60 days of settlement
- Tasmania: 3 months of settlement
In most cases, the payment will also be arranged by the lawyer or conveyancer, who will confirm the exact amount while acting on your behalf.
Can I add stamp duty to my home loan?
Stamp duty (also called transfer duty) is an upfront cost, often due before or around settlement, depending on your state’s rules. That means it’s not usually part of your home loan. But it’s worth checking – in some instances, your lender might let you borrow extra to cover it.
Just keep in mind, though, that if you add your stamp duty to your loan, you’ll end up paying more in interest overall.
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