How much is stamp duty in NSW?
Enter your details in our stamp duty calculator and it will calculate the stamp duty payable and also work out if you’re eligible for a grant or reduced stamp duty in New South Wales (NSW).
What is stamp duty?
Stamp duty, also known as transfer duty, is a one-off government fee paid by the purchaser of a property in New South Wales (NSW).
You must pay stamp duty in NSW when you buy:
- a home or holiday home
- an investment property
- vacant land or a farming property
- commercial or industrial properties
- a business, which includes land.
How to calculate stamp duty in NSW?
Stamp duty is generally calculated on the market value of the property. So the higher the property value, the more expensive the stamp duty will be.
The stamp duty (transfer) rates for NSW from 1 July 2020 are as follows:
|Property value||Stamp duty (transfer duty) rate|
|$0 to $14,000||$1.25 for every $100 (the minimum is $10)|
|$14,000 to $31,000||$175 plus $1.50 for every $100 over $14,000|
|$31,000 to $83,000||$430 plus $1.75 for every $100 over $31,000|
|$83,000 to $310,000||$1,340 plus $3.50 for every $100 over $83,000|
|$310,000 to $1,033,000||$9,285 plus $4.50 for every $100 over $310,000|
|Over $1,033,000||$41,820 plus $5.50 for every $100 over $1,033,000|
Source: NSW State Revenue Office
For example, if you were purchasing a $600,000 house in New South Wales, you would fall within the $310,000 to $1,033,000 category. Therefore, you would be charged an upfront stamp duty of $9,285 plus an additional charge of $13,050 for a total of $22,335.
Given the higher-priced property in and around Sydney, a Sydney buyer purchasing a $1.2 million property will need to pay stamp duty of $51,005.
You may be able to add the cost of stamp duty to your home loan.
Give us a call on 1300 889 743 or complete our free assessment form to speak with one of our mortgage brokers.
Stamp duty NSW exemptions
When is the stamp duty exempted in NSW?
In some circumstances, stamp duty may be exempted or discounted:
- when you are a beneficiary of a deceased estate, or
- the transfer is between a married couple or de facto couple.
Are there any stamp duty exemptions for first home buyers in NSW?
The NSW government abolished stamp duty for first home buyers buying a property valued up to $650,000. This change saved first home buyers up to $24,585 in stamp duty.
In addition, first home buyers purchasing homes valued between $650,001 and $850,000 were also granted discounts/concessions.
Unlike the first home owners grant (FHOG) in NSW, the stamp duty exemption/concession applies to all property types, and is not limited to only new or off-the-plan properties.
Please read our guide for a full list of government grants and schemes available for first home buyers.
Temporary stamp duty changes for first home buyers
On 1 August 2020, the NSW government increased the threshold for stamp duty exemption for first home buyers from $650,000 to $800,000 for newly built homes and from $350,000 to $400,000 for vacant land.
This is a temporary change applicable for 12 months starting from 1 August 2020.
NSW to phase out stamp duty
The New South Wales government is proposing to abolish stamp duty as part of its 2020-21 budget announcement on 17 November 2020.
Instead of paying stamp duty upfront, it would be replaced by an annual property tax. Property buyers will be given an option to either pay stamp duty upfront or pay a smaller annual property tax.
The NSW government is currently in consultation phase regarding the stamp duty reform until March 2021.
Stamp duty exemption: 2019/20 NSW bushfire duty relief scheme
This NSW scheme is aimed at helping homeowners whose homes were destroyed during the 2019/2020 NSW bushfires, and who choose to purchase a replacement property elsewhere rather than rebuild.
People who meet the requirements for receiving this assistance will either:
- not have to pay duty
- pay a reduced amount of duty, or
- receive a refund of all (or some) of duty paid.
For more information, please refer to the NSW OSR’s website here.
How to calculate stamp duty on vacant land in NSW
To calculate the stamp duty on land in NSW, simply enter the land value in our calculator, and choose vacant land to get the stamp duty payable.
The duty payable is calculated the same way as a standard house or unit.
However, please note that for land over 2 hectares, a premium transfer rate and a different method of calculation applies.
Also, first home buyers purchasing vacant land to build their home will pay no duty at all if the land’s value is $350,000 or less.
With the recent change announced by the NSW government, this threshold has increased to $400,000 temporarily. Vacant land valued above $400,000 but below $450,000 will be charged at a discounted/concessional rate.
What is the stamp duty surcharge for foreign investors?
In addition to the standard transfer (stamp) duty, foreigners must also pay an 8% surcharge on the value of the residential land they buy in NSW.
And for property purchased in New South Wales, a 2% land tax surcharge also applies.
The only exception to this surcharge is if you’re a New Zealand citizen on a subclass 444 visa or a permanent resident who has lived in Australia for more than 200 days in the 12 months before the purchase date.
FAQs: Stamp duty NSW
Who pays the stamp duty in NSW?
The purchaser of the property pays the stamp duty in NSW. The purchase becomes liable for the stamp duty once the sale or transfer takes place.
Your conveyancer or solicitor lodges an application on your behalf. They’ll also arrange for the duty to be paid. This is typically done as part of the settlement process. They’ll also know if you are entitled to any exemptions or concessions.
Who is the stamp duty payable to in NSW?
In NSW, the stamp duty is payable to the Office of State Revenue.
If you’re not using a solicitor or conveyancer, you must lodge an application and pay the duty yourself using BPAY or an electronic fund transfer (EFT).
When do you pay stamp duty in NSW?
Typically, transfer or stamp duty is paid with other funds transferred at the time of the property settlement.
Otherwise, stamp duty must be paid within three months of the date of exchange as shown on the contract to avoid interest charges.
When do you pay stamp duty on an off-the-plan purchase?
Home buyers purchasing an off-the-plan property to live in, i.e. not an investment property in NSW, have the option to defer paying their stamp duty up to 12 months after they’ve signed the agreement, or until the property is completed or handed over, whichever comes first.
This is aimed at helping owner-occupiers manage the cost of buying a newly built property.
What if I buy a property below value?
In most cases, you will need to obtain a stamp duty valuation and pay stamp duty on the value as opposed to the purchase price.
This is common when someone buys a property from their family and is given a discount.
Are you ready to apply for a home loan?
Our mortgage brokers can assess your situation and work out if you have a large enough deposit to buy a home.
They can also clarify any questions you may have about the cost of stamp duty, transfer fees or first home owners grants.
Speak to one of our specialist mortgage brokers by calling us on 1300 889 743 or fill in our online assessment form to find out if you’re ready to buy.