New South Wales charges transfer duty — commonly called stamp duty — on most property purchases, with rates that range from 1.25% on properties under $18,000 to 7% on the portion above $3,870,000. Importantly, first-home buyers purchasing a new or existing home up to $800,000 pay no stamp duty at all under the First Home Buyers Assistance Scheme, with a partial concession phasing out at $1,000,000. Foreign buyers face an additional 9% surcharge on top of the standard rates, making NSW one of the more expensive jurisdictions for non-resident purchasers. This article runs through the 2026-27 thresholds, the exemption rules, the $10,000 FHOG for new homes, and worked examples showing duty owed at several common price points.
Standard Transfer Duty Rates for 2026-27
NSW transfer duty thresholds are indexed to the Consumer Price Index each July. The following rates apply to contracts entered from 1 July 2026:
- $0 to $18,000: $1.25 per $100, minimum $10.
- $18,001 to $38,000: $225 plus $1.50 per $100 over $18,000.
- $38,001 to $103,000: $525 plus $1.75 per $100 over $38,000.
- $103,001 to $387,000: $1,662 plus $3.50 per $100 over $103,000.
- $387,001 to $1,290,000: $11,602 plus $4.50 per $100 over $387,000.
- $1,290,001 to $3,870,000: $52,237 plus $5.50 per $100 over $1,290,000.
- $3,870,001 and above (residential premium): $194,137 plus $7.00 per $100 over $3,870,000.
For a $900,000 residential property, the duty calculation is: $11,602 + 4.5% × ($900,000 − $387,000) = $11,602 + $23,085 = $34,687. For a $1,500,000 property: $52,237 + 5.5% × ($1,500,000 − $1,290,000) = $52,237 + $11,550 = $63,787. These are the standard rates; concessions can reduce these amounts substantially.
First-Home Buyer Assistance Scheme (FHBAS)
Under the FHBAS, eligible first-home buyers receive:
- Full exemption: New or existing homes valued up to $800,000 — no transfer duty payable.
- Partial concession: Homes valued between $800,001 and $1,000,000 — duty is calculated on a sliding scale that reduces the standard amount.
- Vacant land: Full exemption on land valued up to $350,000; partial concession phasing to $450,000.
To qualify, you must be an individual (not a company or trust), over 18, an Australian citizen or permanent resident (or hold a relevant visa category), and you or your spouse must not have previously owned residential property in Australia or received a first-home duty concession or grant. You must move into the property within 12 months and live there for at least 6 continuous months.
The concession must also not result in a duty amount below the minimum ($10), though for amounts below $800,000 this is irrelevant since the exemption is full.
First Home Owner Grant (FHOG) — $10,000
NSW offers a First Home Owner Grant of $10,000 for buyers of a new home (never previously occupied or sold as a place of residence) valued at $600,000 or less. The grant applies whether you buy a newly built home off-the-plan, a substantially renovated home, or contract to build. It is separate from the FHBAS stamp duty exemption — you can receive both the grant and the duty exemption on the same purchase if you meet the criteria for each.
Foreign Purchaser Surcharge — 9%
Non-resident and temporary resident buyers pay an additional surcharge of 9% of the dutiable value on top of the standard transfer duty. For a $900,000 property, the surcharge alone is $81,000 — in addition to the $34,687 standard duty noted above, for a total of $115,687. Foreign buyers also face FIRB application fees and are generally restricted to purchasing new dwellings or vacant land intended for development, not established residential property.
This 9% surcharge is one reason NSW remains among the most expensive states for foreign buyers. Queensland and Victoria each charge 8%, while Western Australia charges 7% and South Australia 7%. The ACT has no foreign purchaser conveyance surcharge.
Worked Example: First-Home Buyer vs Standard Buyer vs Foreign Buyer
Consider a home purchased for $750,000 in NSW in 2026-27:
- First-home buyer (eligible for FHBAS): The price is under $800,000, so transfer duty is $0. Plus $10,000 FHOG if it is a new home. Net cost of duty: $0 (potential $10,000 credit from FHOG).
- Standard buyer (Australian resident, previously owned): Duty = $11,602 + 4.5% × ($750,000 − $387,000) = $11,602 + $16,335 = $27,937.
- Foreign buyer: Standard duty $27,937 + foreign surcharge 9% × $750,000 = $67,500. Total: $95,437.
The gap between a first-home buyer and a foreign buyer on the same $750,000 property is nearly $95,000 in upfront duty costs.
Frequently Asked Questions
When is stamp duty actually payable?
Transfer duty must be paid within 3 months of the contract date (or settlement, for off-the-plan purchases). Late payment attracts interest. Your solicitor or conveyancer typically handles lodgement and payment as part of settlement.
Does the FHBAS apply to investment properties?
No. You must occupy the home as your principal place of residence within 12 months and live there for at least 6 continuous months. Investment purchases are not eligible.
Can I get the FHOG if I buy an existing home?
No. The FHOG is only for new homes, substantially renovated homes, or homes you contract to build. The FHBAS (stamp duty exemption) applies to both new and existing homes.
What if I buy with a partner who has previously owned property?
If either applicant has previously owned residential property or received a duty concession or grant in Australia, the FHBAS and FHOG are generally not available. Exceptions exist in limited circumstances — confirm with Revenue NSW or your conveyancer.
Does the foreign surcharge apply to permanent residents?
No. Australian permanent residents and citizens who meet the residency test are not classified as foreign persons for the surcharge. New Zealand citizens holding a Special Category Visa (subclass 444) are also generally exempt.
Data Sources
All duty rates, thresholds, and concession rules are sourced from Revenue NSW and the Duties Act 1997 (NSW), with CPI-indexed figures applying from 1 July 2026. The foreign surcharge rate is set under the Duties Act and confirmed by Revenue NSW.
- Revenue NSW — Transfer duty rates: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty
- Revenue NSW — First Home Buyers Assistance Scheme: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyers
- Revenue NSW — First Home Owner Grant: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyers/first-home-owner-grant
- Revenue NSW — Foreign purchaser surcharge: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty/surcharge-purchaser-duty
- NSW Legislation — Duties Act 1997: https://legislation.nsw.gov.au/
Data current as at July 2026. Thresholds are CPI-indexed each 1 July; verify with Revenue NSW for the latest figures before relying on these calculations.
Disclaimer
This article provides general information only and does not constitute financial, tax, legal, or conveyancing advice. Transfer duty obligations and concession eligibility depend on your individual circumstances and the specific property. Confirm your liability with Revenue NSW, a licensed conveyancer, or a solicitor before proceeding with a property purchase.