Stamp Duty in Australia: A State-by-State Guide 2025

Stamp duty, also known as transfer duty, is one of the largest upfront costs when purchasing property in Australia. This government tax is levied on property transactions and varies significantly depending on which state or territory you are buying in, the property value, and your circumstances as a buyer. Understanding stamp duty is essential for budgeting your property purchase, as it can add tens of thousands of dollars to your costs. This comprehensive guide covers stamp duty across all Australian states and territories, including exemptions and concessions that may reduce your liability.

What Is Stamp Duty and Why Does It Exist?

Stamp duty is a tax collected by state and territory governments on the transfer of property ownership. It is calculated as a percentage of the property's value, with rates increasing progressively for higher-value properties. The tax must be paid before property settlement can occur, meaning you need to have these funds available in addition to your deposit and other purchase costs. Stamp duty is a significant source of revenue for state governments, funding essential services and infrastructure.

The amount you pay depends on several factors including the property purchase price or market value (whichever is higher), the state or territory where the property is located, whether the property will be your primary residence or an investment, whether you are a first home buyer, and whether you are a foreign purchaser, which attracts additional surcharges in most jurisdictions.

Stamp Duty by State and Territory

New South Wales

NSW has some of the highest stamp duty rates in Australia, particularly for properties in Sydney. The standard rate ranges from 1.25 percent for properties up to $14,000 to 5.5 percent for properties over $1,064,000, plus a fixed amount. For a property valued at $800,000, expect to pay approximately $31,490 in stamp duty. First home buyers purchasing properties up to $800,000 may be eligible for a full exemption if the property is valued at $650,000 or less, or a reduced rate for properties between $650,000 and $800,000.

Victoria

Victoria applies transfer duty rates starting at 1.4 percent for properties up to $25,000 and reaching 5.5 percent for properties over $960,000. A property valued at $800,000 would attract approximately $43,070 in stamp duty under standard rates. First home buyer concessions apply to properties valued up to $750,000, with full exemption available for properties under $600,000. Victoria also offers a reduced rate for pensioners and an off-the-plan concession for apartment purchases.

Queensland

Queensland's transfer duty rates are more competitive than the southern states, ranging from 1.5 percent to 5.75 percent for the highest value properties. For an $800,000 property, stamp duty would be approximately $28,850. First home buyers purchasing properties up to $550,000 may receive a full concession, with a sliding scale applying to properties up to $650,000. Queensland also charges an additional transfer duty for properties in the Brisbane metropolitan area above certain thresholds.

Western Australia

WA uses a tiered system with rates from 1.9 percent to 5.15 percent for residential properties. An $800,000 property attracts approximately $31,765 in duty. First home buyer concessions are available for vacant land up to $400,000 and established homes up to $530,000, with full exemptions for properties under $430,000. WA also offers a 75 percent reduction for off-the-plan apartment purchases under certain conditions.

South Australia

SA applies rates from 1 percent to 5.5 percent, with an $800,000 property incurring approximately $35,330 in stamp duty. First home buyers can access concessions on properties up to $600,000, with additional relief available for those building new homes. SA offers some of the most generous first home buyer assistance when combined with other grants and schemes available in the state.

Tasmania

Tasmania has relatively moderate stamp duty rates, ranging from approximately 1.75 percent to 4.5 percent. An $800,000 property would attract around $28,635 in duty. First home buyer concessions apply to properties up to $600,000, with a 50 percent discount available. Tasmania's overall lower property prices compared to mainland capitals means stamp duty is often a smaller absolute amount despite similar percentage rates.

Australian Capital Territory

The ACT is progressively phasing out stamp duty and replacing it with an annual land tax. However, stamp duty still applies to most transactions, with rates ranging from 2.1 percent to 7 percent for the highest value properties. An $800,000 property would incur approximately $25,300 in duty. The ACT offers means-tested first home buyer concessions with thresholds based on income rather than property value alone.

Northern Territory

The NT has a simplified stamp duty structure with rates from 1.5 percent to 5.45 percent. An $800,000 property attracts approximately $38,930 in duty. First home buyer concessions are available for properties up to $650,000, with stamp duty relief also available for seniors and pensioners purchasing their home.

First Home Buyer Concessions Explained

Every Australian state and territory offers some form of stamp duty relief for first home buyers, though the eligibility criteria and benefits vary significantly. Common requirements include never having owned property in Australia before, purchasing a property that will be your principal place of residence, and in some cases, income thresholds or property value caps. You generally must move into the property within 12 months and live there for a minimum period, often 6 to 12 months.

These concessions can save first home buyers thousands to tens of thousands of dollars. It is essential to verify current eligibility requirements with your state's revenue office, as thresholds and conditions change periodically. Some states also allow first home buyer concessions to be combined with first home owner grants and other assistance programs.

Foreign Buyer Surcharges

Foreign purchasers face additional stamp duty surcharges in most Australian jurisdictions. NSW charges an 8 percent surcharge on top of standard duty, Victoria charges 8 percent, Queensland charges 7 percent, WA charges 7 percent, and SA charges 7 percent. These surcharges can add significant costs to property purchases by non-residents or temporary visa holders, though some exemptions may apply for certain visa categories or Australian permanent residents.

Strategies to Reduce Stamp Duty

While stamp duty is generally unavoidable, several strategies may reduce your liability. Purchasing off-the-plan can attract concessions in some states, as duty may be calculated on the land value only at contract signing rather than the completed property value. Buying as a first home buyer and meeting all eligibility criteria provides the most significant savings available. In the ACT and some other jurisdictions, considering properties just below threshold values can result in substantial savings. Finally, negotiating a lower purchase price directly reduces your stamp duty obligation.

Conclusion

Stamp duty represents a significant cost in any Australian property purchase and should be factored into your budget from the earliest stages of planning. The variations between states mean that understanding the specific rules for where you are buying is essential. First home buyers in particular should research available concessions thoroughly, as failing to claim eligible relief means paying thousands more than necessary.

Remember that stamp duty is just one of several upfront costs when purchasing property, alongside legal fees, building inspections, and potentially Lenders Mortgage Insurance if your deposit is below 20 percent. By understanding and planning for all these costs, you can enter the property market with confidence and avoid financial surprises at settlement.