New South Wales transfer duty (commonly called stamp duty) is a state tax on property purchases. For the 2026-27 financial year, NSW applies CPI-indexed thresholds with rates ranging from 1.25% on properties under $18,000 to 7% on premium residential properties above $3,870,000. First home buyers can access a full exemption on new or existing homes up to $800,000, phasing out for purchases up to $1,000,000, while vacant land up to $350,000 is also fully exempt. Foreign purchasers pay an additional 9% surcharge duty on top of standard rates. The First Home Owner Grant (FHOG) provides a separate $10,000 payment for newly built homes up to $600,000. For a typical $950,000 first home, the duty payable after the concessional phase-out is approximately $31,352, though buyers under the threshold pay nothing. This guide sets out all current rates, concessions, worked examples, and frequently asked questions for NSW property transfers as at July 2026.
NSW Transfer Duty Rates for 2026-27
Revenue NSW indexes duty thresholds each July for inflation. The following brackets apply from 1 July 2026:
- Properties valued at $18,000 or below: 1.25% of the dutiable value, with a minimum of $10.
- $18,001 to $38,000: $225 plus 1.5% of the amount over $18,000.
- $38,001 to $103,000: $525 plus 1.75% of the amount over $38,000.
- $103,001 to $387,000: $1,662 plus 3.5% of the amount over $103,000.
- $387,001 to $1,290,000: $11,602 plus 4.5% of the amount over $387,000.
- $1,290,001 to $3,870,000: $52,237 plus 5.5% of the amount over $1,290,000.
- Residential premium property above $3,870,000: $194,137 plus 7% of the amount over $3,870,000.
These rates apply to the greater of the purchase price or the current market value of the property. NSW uses a progressive scale: each portion of the price falling within a bracket is taxed at that bracket’s rate, and the fixed dollar amounts shown above represent the cumulative duty on all lower brackets.
Worked Example: $950,000 Home Purchase
For a property purchased at $950,000 by a non-first-home buyer, the calculation proceeds through each bracket:
The first $387,000 attracts $11,602 in cumulative duty. The remaining $563,000 (from $387,001 to $950,000) falls into the fourth bracket at 4.5%, adding $25,335. Total transfer duty: $11,602 + $25,335 = $36,937. A first home buyer at this price point would receive a concessional rate, reducing that amount considerably (see below).
First Home Buyer Concessions in NSW
The First Home Buyers Assistance Scheme (FHBAS) remains one of the most significant cost-saving measures for NSW first home buyers in 2026.
Full Exemption
First home buyers purchasing a new or existing home with a dutiable value of $800,000 or less pay no transfer duty at all. This applies regardless of whether the property is a house, apartment, or townhouse. For vacant land intended as the site of a first home, the full exemption applies to land valued at $350,000 or less.
Concessional (Phased-Out) Rates
For homes valued between $800,001 and $1,000,000, a concessional sliding scale applies. The duty payable increases gradually from zero at $800,000 toward the full rate at $1,000,000. Buyers receive a partial concession calculated on a formula that phases out the benefit. For a home at $900,000, the concessional duty is approximately $18,341, compared with roughly $34,687 under standard rates. Above $1,000,000, no first home concession applies.
Eligibility Requirements
To qualify, at least one buyer must be an Australian citizen or permanent resident, the property must be occupied as the buyer’s principal place of residence for a continuous period of at least six months starting within 12 months of settlement, and the buyer (and their spouse or partner) must not have previously owned residential property in Australia.
First Home Owner Grant (FHOG) in NSW
The NSW First Home Owner Grant provides $10,000 toward the purchase of a new home valued at $600,000 or less. This grant is separate from the FHBAS duty exemption and can be claimed alongside it, meaning a first home buyer purchasing a new home for $600,000 could pay zero transfer duty and receive $10,000 from the FHOG.
The grant also applies to owner-builder contracts where the total value of the home and land does not exceed $750,000. Eligibility mirrors the FHBAS residency requirements.
Foreign Purchaser Surcharge in NSW
Foreign persons acquiring residential-related property in NSW pay surcharge purchaser duty of 9% on top of the standard transfer duty rates. This surcharge applies to the entire dutiable value of the property and is calculated separately from the standard duty.
A foreign person is generally defined as an individual who is not an Australian citizen, not a New Zealand citizen holding a special category visa, and not a permanent resident. Certain temporary residents may also be captured. The surcharge applies to both direct purchases and acquisitions through companies or trusts where a foreign person holds a substantial interest.
For example, a foreign purchaser buying a $1,200,000 home would pay approximately $43,802 in standard transfer duty plus $108,000 in surcharge duty (9% of $1,200,000), for a total duty liability of $151,802.
Frequently Asked Questions
When does NSW stamp duty need to be paid? Transfer duty must be paid within three months of the date of the liability arising, which is typically the date of exchange of contracts. Late payment attracts interest at the market rate plus a premium.
Can NSW stamp duty be added to a mortgage? Transfer duty is a separate upfront cost and cannot be rolled into a standard home loan. Buyers must budget for it as a cash outlay at or before settlement, along with other costs such as legal fees and mortgage registration charges.
Are there exemptions for transfers between spouses or de facto partners? Yes, transfers of residential property between spouses or de facto partners as a result of a breakdown of a marriage or relationship are generally exempt from transfer duty. Transfers between spouses without a relationship breakdown may also be exempt in certain circumstances.
Does the FHBAS apply to investment properties? No. The First Home Buyers Assistance Scheme requires the purchaser to occupy the property as their principal place of residence. Investment properties are not eligible for the duty exemption or concession.
Is stamp duty payable on inherited property? Transfers of property to a beneficiary under a will or the laws of intestacy are generally exempt from NSW transfer duty, provided no consideration is paid.
Data Sources
The information in this article is drawn from Revenue NSW official publications on transfer duty rates, first home buyer concessions, and foreign surcharge duty, as current at July 2026. Readers should confirm specific circumstances with Revenue NSW or through a licensed conveyancer.
In addition to state government sources, Arrivau’s licensed property consultants can provide personalised guidance on NSW transfer duty obligations and available concessions, typically within one business day.
Disclaimer: This article provides general information only and does not constitute financial, tax, or legal advice. Stamp duty rates and concessions may change. Readers should confirm current rates with the relevant state Revenue Office or a licensed professional before making property decisions. Data current as at July 2026.