Key takeaways
- Stamp duty (transfer duty) is a state tax on property purchases — typically 3–5% of the price, paid in cash at settlement.
- It’s the largest upfront cost after your deposit, and it can’t be borrowed as part of the loan.
- First-home buyers get full exemptions or concessions in every state, often on homes up to a set price.
- New builds, vacant land and off-the-plan purchases frequently attract lower duty than established homes.
Ask a buyer what a house costs and they’ll quote the price. Ask what it costs to buy it, and stamp duty is the number that catches most people out. On a $600,000 home it can run past $20,000 — due in cash, on top of your deposit, at settlement. Knowing your figure early is the difference between a smooth purchase and a scramble.
What stamp duty actually is
Stamp duty — officially transfer duty — is a tax each state and territory charges when property changes hands. It’s calculated on the higher of the purchase price or the property’s market value, on a sliding scale: the more expensive the property, the higher the percentage. Because it’s a state tax, the rates, brackets and concessions differ everywhere, and they change with most state budgets.
How it’s calculated
Every state publishes a bracketed table — a base amount plus a percentage of the value above each threshold. As a rough guide, established homes attract duty of around 3–5% of the price once you’re past the concession zone. A few things shift the number:
- Property type. Vacant land and new builds are usually charged less than established dwellings.
- Who you are. First-home buyers, pensioners and some off-the-plan buyers get concessions; foreign buyers pay a surcharge.
- How you’ll use it. Owner-occupiers sometimes pay less than investors on the same property.
Because duty is paid in cash and can’t be added to the loan, it comes straight out of your savings — which reduces your deposit and can tip you into LMI territory. Always plan your deposit after subtracting duty and other costs, not before.
First-home buyer concessions
This is where the biggest savings live. Every state offers first-home buyers either a full exemption up to a price threshold or a tapering concession above it, and several waive duty entirely on new homes and land within limits. The thresholds move often and vary widely between states, so the only reliable answer is your current state’s figure for your price point. If you’re buying your first home, read our first home buyer guide and check whether the First Home Guarantee also applies — the two can stack.
The costs that travel with it
Stamp duty is the big one, but budget alongside it for mortgage registration and transfer fees, conveyancing, building and pest inspections, and lender or loan fees. Together these “upfront costs” typically add up to around 4–6% of the purchase price for buyers who don’t qualify for concessions. Knowing the total tells you your real deposit target.
Broker Insight. We regularly see first-home buyers who don’t realise a concession could save them thousands — or that buying just under a threshold changes the bill entirely. It’s worth modelling before you make an offer.
Know your real number before you fall in love with a house
We’ll calculate your stamp duty, upfront costs and true deposit for your state and price range — and check every concession you qualify for. Free, no credit check.
Book your free game plan callFrequently asked questions
Can stamp duty be added to my home loan?
Not directly — stamp duty is paid at settlement, not borrowed as part of the purchase price. But if you have enough equity or deposit, the duty can be covered from your own funds while the loan covers the property. Because it reduces the cash you have left for the deposit, it directly affects your loan-to-value ratio and whether LMI applies. We factor it into your numbers from the start.
Do first home buyers pay stamp duty?
Often little or none, depending on your state and the price. Most states offer a full exemption up to a threshold and a sliding concession above it, and many waive duty entirely on new builds or vacant land within limits. Thresholds change regularly, so check the current rules for your state — or ask us to run your exact figure.
When is stamp duty paid?
Generally at or shortly before settlement, within a set number of days of signing the contract (this varies by state). Your conveyancer or solicitor handles the payment; you just need the cleared funds ready. Missing the deadline can attract interest, so it’s built into your settlement plan.
This guide is general information only and does not take your personal circumstances into account. It is not financial or credit advice. Government schemes, lender policies, rates and tax rules change over time and eligibility criteria apply. Speak with us for advice tailored to your situation.