Property Purchase Loans
What Stamp Duty Applies When Buying Property?
5 min read- Finance Guide
- Updated 2026
Quick answer
Stamp duty is often one of the
1 of the largest upfront costs
Alongside your deposit, legal fees and settlement costs
- Usually based on state rules + property value
- Often payable around settlement or shortly after
- First home buyer relief May reduce or remove duty
1300 421 044
1300 421 044
Detailed explained
Stamp duty is one of the main upfront transaction costs when buying property. Although the language differs between jurisdictions, the core idea is similar: a duty amount is assessed on the transfer of property, usually using the greater of the purchase price or market value where required under local rules. For buyers, this means the advertised purchase price is rarely the full amount of cash needed to complete a deal.
How stamp duty is usually worked out
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Each state and territory has its own transfer duty scale, thresholds and exemptions, so the amount is not uniform across Australia
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Duty is commonly calculated using the dutiable value, which may be the purchase price, market value or whichever is higher under local legislation
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Your duty outcome can change depending on whether you are buying as an owner occupier, first home buyer, investor, company, trust or foreign person
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Concessions may apply for eligible first home buyers, principal place of residence purchases, vacant land in some jurisdictions, or specific off the plan transactions
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STAMP DUTY SNAPSHOT
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Base duty
varies by state
-
Possible concession
may reduce cost
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Before you buy
Check duty, concessions and surcharge rules before signing a contract
How stamp duty applies in practice
Property price
01
The price and dutiable value are the starting point for working out how much duty may apply
Buyer status
02
Your result changes depending on whether you are a first home buyer, owner occupier, investor or foreign purchaser
Concessions
03
Eligible concessions or exemptions are then applied under the rules of the relevant state or territory
Payment timing
04
The assessed duty is then paid in line with local settlement and lodging requirements, usually through your conveyancer or solicitor
What affects stamp duty
Property value
Higher value transactions usually attract higher duty because most duty scales are progressive
State or territory
Rates, thresholds, naming conventions and exemptions differ across Australia
Buyer type
Owner occupiers, investors, companies, trusts and foreign buyers may all face different duty outcomes
First home buyer status
Many jurisdictions offer meaningful exemptions or concessions for eligible first home buyers
Property use
Whether the property will be your principal place of residence can affect the duty payable
Special transaction rules
Off the plan purchases, vacant land, relationship transfers and surcharge rules can materially change the result
Important budgeting point
Stamp duty is usually an upfront buying cost and is not always something borrowers want bundled into the loan, so it should be included in your cash to complete estimate early
Need Help with your Purchase?
When stamp duty is dealt with
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01. Before signing, your conveyancer or solicitor can estimate the likely duty and confirm whether any concession may apply
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02. After exchange or contract signing, the transaction is lodged and the duty position is formally assessed under the relevant jurisdiction rules
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03. Duty is usually arranged as part of the settlement process or paid within the required post settlement timeframe set by the relevant revenue office
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04. If you are claiming a first home or home buyer concession, the paperwork and eligibility declarations generally need to be completed accurately before settlement is finalised
Common problems
Stamp duty often catches buyers off guard because it is easy to focus on the deposit and loan approval while overlooking taxes, concessions and local rules. Problems usually arise when buyers assume the same rules apply nationally or when they rely on rough online estimates without checking the actual transaction details.
Underestimating upfront costs
Some buyers save only for the deposit and then realise stamp duty, legal fees and adjustments create a much larger cash requirement.
Possible solutions include:
Prepare a full cash to complete budget before making offers- Include duty, legal fees, inspections and settlement adjustments
- Check whether any first home or home concession applies
- Avoid signing before the overall funding position is clear
Assuming the wrong concession
Buyers sometimes assume a first home benefit or owner occupier concession applies automatically when the fine print says otherwise.
Possible solutions include:
- Check occupancy and timing rules carefully
- Confirm price caps and property eligibility before exchange
- Make sure all buyers on title meet the concession requirements
- Have your solicitor or conveyancer verify the duty treatment
State based rule differences
A buyer moving between states can easily misjudge the cost because thresholds, terminology, payment timing and surcharge rules are not identical.
Possible solutions include:
- Use the correct state or territory calculator
- Check whether the property is treated as new, established, vacant land or off the plan
- Identify any foreign purchaser surcharge before committing
- Review the final figures before settlement funds are called
Steps to budget for stamp duty
Step
01
Estimate the purchase price and total funds needed, not just the deposit.
Step
02
Check the duty rules in the relevant state or territory.
Step
03
Test whether any first home, home buyer or off the plan concession may apply.
Step
04
Have your solicitor or conveyancer confirm the likely duty and timing.
Step
05
Allow for duty in your settlement funds and lender cash contribution.
Step
06
Complete any declarations correctly so exemptions or concessions are not lost.
Speak with a Property Finance Specialist
Property buying costs can vary significantly depending on the state or territory, the purchase price, the buyer profile, and whether any duty concession or exemption is available.
A specialist can help you work out the likely cash required, including deposit, stamp duty and other completion costs before you commit to a property.
Speak with a finance specialist about your property purchase costs
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