If you are planning on buying a house in NSW, understanding how much stamp duty you are liable to pay can help you in budgeting accurately for purchase expenses.
Those budgeting to purchase their first home often make the mistake of leaving out stamp duty as part of the transaction cost of purchasing a house – or underestimating the cost significantly; resulting in a large unaccounted sum popping up down the line.
To help you avoid any unnecessary surprises, we’ve put together this guide for how much stamp duty costs in NSW in 2024, how the cost of it is calculated, and what government concessions or exemptions are applicable to minimise the cost of stamp duty.
Table of contents
- What is stamp duty in NSW, and who pays it?
- How is stamp duty calculated in NSW?
- The costs of stamp duty in NSW
- Exemptions and concessions for stamp duty in NSW
What is stamp duty in NSW, and who pays it?
Stamp duty, or transfer duty, is a property tax that is paid as part of property transactions such as sales or transfers of ownership.
In most cases, it is usually the buyer of the property that is responsible for fulfilling this tax obligation.
When you are buying a property in NSW, even as a foreigner, it’s important to take the cost of stamp duty into account as it can form a significant portion of the overall transaction amount, often into hundreds and thousands of dollars.
How is stamp duty calculated in NSW?
The cost of stamp duty is applied using a tiered threshold system, meaning that it changes depending on the value of the house you are purchasing. The higher the value of the purchased property, the higher the cost of stamp duty.
Each year the threshold amounts for standard transfer duty and premium duty rates are adjusted in line with movements in the Sydney Consumer Price Index (CPI).
The costs of stamp duty in NSW
As of this article’s writing, the latest stamp duty charges are based on the existing transfer duty rates established by Revenue New South Wales in July 2023.
Here are the stamp duty costs in NSW as of July 2023:
| Property value | Standard transfer duty rate |
|---|---|
| $0 to $16,000 | $1.25 for every $100 (minimum $20) minimum duty $10, prior to 1 February 2024 |
| $16,000 to $35,000 | $200 plus $1.50 for every $100 over $16,000 |
| $35,000 to $93,000 | $485 plus $1.75 for every $100 over $35,000 |
| $93,000 to $351,000 | $1,500 plus $3.50 for every $100 over $93,000 |
| $351,000 to $1,168,000 | $10,530 plus $4.50 for every $100 over $351,000 |
| Over $1,168,000 | $47,295 plus $5.50 for every $100 over $1,168,000 |
Residential properties valued at over $3,000,000 are charged a premium transfer rate in addition to the maximum standard transfer rate in the table above.
| Applicable period | Property value | Premium rate |
|---|---|---|
| From 1 July 2023 | Over $3,505,000 | $175,830 plus $7.00 for every $100 over $3,505,000 |
| From 1 July 2022 | Over $3,268,000 | $163,940 plus $7.00 for every $100 over $3,268,000 |
| From 1 February 2022 | Over $3,131,000 | $157,080 plus $7.00 for every $100 over $3,131,000 |
| From 1 July 2021 | Over $3,194,000 | $160,237 plus $7.00 for every $100 over $3,194,000 |
| From 1 July 2020 | Over $3,101,000 | $155,560 plus $7.00 for every $100 over $3,101,000 |
| From 1 July 2019 | Over $3,040,000 | $152,502 plus $7.00 for every $100 over $3,040,000 |
| Before 1 July 2019 | Over $3 million | $150,490 plus $7.00 for every $100 over $3 million |
Exemptions and concessions for stamp duty in NSW
With property values reaching new heights in NSW, buyers can expect stamp duty costs to easily reach into the thousands.
Fortunately, there are exemptions and concessions that buyers may be able to take advantage of to waive part of the cost of stamp duty.
First Home Buyers Assistance Scheme
First-time home buyers in NSW may be able to receive a full exemption from paying stamp duty on their property purchase thanks to the First Home Buyers Assistance Scheme. The aim of this scheme is to lighten the financial burden for potential homeowners by completely mitigating the cost of stamp duty for new homes valued up to $800,000 and existing homes up to $650,000.
For homes valued between $800,000 and $1 million, the scheme offers a dynamic concession on stamp duty.
Calculating the cost of your stamp duty
If you are not eligible for any exemption or concession, it’s a good idea to estimate the cost of stamp duty before proceeding with a property purchase. Having an accurate estimate will help you prepare for it in advance for a smooth and quick sale transaction.
Calculate your stamp duty costs using our accurate stamp duty calculator and get a result within a few clicks. And if you’ve calculated your stamp duty costs and are ready to make your purchase, our expert team of conveyancers in NSW at Entry Conveyancing can offer legal support for the transfer of ownership of your new property — whether you’re in the CBD, Western Sydney, or Wollongong, contact us today to find out how we can assist in your new property purchase!
