NSW Stamp Duty 2026-27: Rates, First Home Buyer Concessions, and Foreign Surcharge

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New South Wales transfer duty — commonly referred to as stamp duty — is a state tax payable on the purchase of real property. The duty rates are CPI-indexed each July, meaning the 2026–27 thresholds differ from prior years. For a standard residential purchase at $900,000 by a non-first-home buyer, the duty payable is approximately $34,502. First home buyers benefit from the First Home Buyers Assistance Scheme (FHBAS), which provides a full exemption on new and existing homes valued up to $800,000, with a concessional phase-out to $1,000,000. Vacant land purchases up to $350,000 also qualify for a full exemption. Foreign purchasers pay an additional 9% surcharge on top of the standard duty — so a foreign buyer purchasing a $900,000 property would pay approximately $115,502 in combined duty and surcharge. The First Home Owner Grant (FHOG) of $10,000 applies to new homes valued at $600,000 or less, and is separate from the duty concession.

NSW Transfer Duty Rates 2026-27

The standard transfer duty rates for residential and investment property in New South Wales for the 2026–27 financial year are:

  • $0 – $18,000: 1.25% of the dutiable value
  • $18,001 – $38,000: $225 plus 1.5% of the amount over $18,000
  • $38,001 – $103,000: $525 plus 1.75% of the amount over $38,000
  • $103,001 – $387,000: $1,662 plus 3.5% of the amount over $103,000
  • $387,001 – $1,290,000: $11,602 plus 4.5% of the amount over $387,000
  • $1,290,001 – $3,870,000: $52,237 plus 5.5% of the amount over $1,290,000
  • $3,870,001 and above (residential premium rate): $194,137 plus 7% of the amount over $3,870,000

These thresholds are adjusted annually for CPI and published by Revenue NSW. The premium rate of 7% was introduced for residential properties above the $3,870,000 threshold. These rates apply to the purchase price or market value, whichever is higher, and are calculated on the total dutiable value of the transaction.

Worked Examples

$600,000 property (investor, non-first-home)

  • Duty: $11,602 + (4.5% × ($600,000 − $387,000))
  • = $11,602 + (4.5% × $213,000) = $11,602 + $9,585
  • Total duty: approximately $21,187

$900,000 property (investor, non-first-home)

  • Duty: $11,602 + (4.5% × ($900,000 − $387,000))
  • = $11,602 + (4.5% × $513,000) = $11,602 + $23,085
  • Total duty: approximately $34,687

$1,500,000 property

  • Duty: $52,237 + (5.5% × ($1,500,000 − $1,290,000))
  • = $52,237 + (5.5% × $210,000) = $52,237 + $11,550
  • Total duty: approximately $63,787

First Home Buyers Assistance Scheme (FHBAS)

The First Home Buyers Assistance Scheme provides a full or partial exemption from transfer duty for eligible first home buyers in NSW. The scheme applies to both new and existing homes.

Full Exemption

An eligible first home buyer pays no transfer duty on a property with a dutiable value of $800,000 or less. This applies regardless of whether the property is newly constructed or an existing dwelling. Vacant land intended for building a first home qualifies for full exemption up to a land value of $350,000.

Concessional (Partial) Exemption

For properties valued between $800,001 and $1,000,000, a concessional rate applies. The duty payable scales up progressively from the full exemption at $800,000 to the full standard duty at $1,000,000. The closer the purchase price is to $800,000, the smaller the duty payable; the closer to $1,000,000, the closer the duty is to the full standard amount.

For vacant land between $350,001 and $450,000, a similar phase-out applies.

Eligibility Requirements

To qualify for the FHBAS, all purchasers must be individuals (not companies or trusts), must be at least 18 years old, and at least one purchaser must be an Australian citizen or permanent resident. None of the purchasers can have previously owned residential property in Australia (or received a first home duty concession or grant in any jurisdiction). The property must be occupied as the purchaser’s principal place of residence for a continuous period of at least 12 months commencing within 12 months of settlement.

Foreign Purchaser Surcharge

Foreign purchasers acquiring residential property in NSW must pay a surcharge purchaser duty of 9% on the dutiable value, in addition to the standard transfer duty.

The surcharge applies to individuals who are not Australian citizens and not ordinarily resident in Australia. It also applies to companies and trusts where there is a foreign person with a substantial interest. A New Zealand citizen holding a Special Category Visa (subclass 444) who is ordinarily resident in Australia is generally not treated as a foreign person for surcharge purposes, but should verify their specific circumstances with Revenue NSW or a solicitor.

A foreign person purchasing a $900,000 residential property would pay:

  • Standard duty: approximately $34,687
  • Surcharge (9% of $900,000): $81,000
  • Combined total: approximately $115,687

The surcharge is calculated on the full dutiable value, not on the standard duty amount. It is not covered by the FHBAS — a first home buyer who is a foreign person loses the exemption and pays both standard duty and surcharge on the full purchase price.

First Home Owner Grant (FHOG)

The NSW First Home Owner Grant provides $10,000 to eligible first home buyers purchasing or building a new home. The grant and the FHBAS are separate — it is possible to receive both if the purchase meets the criteria for each scheme.

To qualify for the FHOG:

  • The home must be a new dwelling (not previously occupied or sold as a place of residence)
  • The total value of the property (house and land) must not exceed $600,000
  • For a house and land package, the combined value of vacant land and building contract must not exceed $750,000
  • At least one applicant must be an Australian citizen or permanent resident
  • The home must be occupied as the principal place of residence for at least 12 months

Unlike the FHBAS, which applies to both new and existing homes, the FHOG only applies to new dwellings. A first home buyer purchasing an existing home for $750,000 could receive a concessional duty rate under the FHBAS but would not be eligible for the $10,000 grant.

Interaction Between Concessions and Surcharge

The mechanisms interact, and a purchase can attract multiple components simultaneously. An Australian citizen first home buyer purchasing a new home for $580,000 would pay zero duty under FHBAS and receive the $10,000 FHOG — a significant combined benefit. A foreign person purchasing the same property would pay duty of approximately $8,762 plus a surcharge of $52,200 for a combined $60,962, and would not be eligible for the FHOG. This illustrates the substantial differential in upfront costs between eligible first home buyers and foreign purchasers at the same price point.

Frequently Asked Questions

When are NSW stamp duty thresholds updated?

Revenue NSW adjusts the transfer duty thresholds each July in line with the Consumer Price Index. The 2026–27 thresholds took effect from 1 July 2026. Duty is calculated based on the thresholds in force on the date of the contract, not the date of settlement.

Can I use the FHBAS on an investment property?

No. The FHBAS requires the property to be occupied as the purchaser’s principal place of residence for a continuous period of at least 12 months commencing within 12 months of settlement. Using the property as an investment during this period is a breach of the scheme conditions.

Does the foreign surcharge apply to Australian permanent residents?

Generally no. Australian citizens and permanent residents who are ordinarily resident in Australia are not subject to the surcharge. A permanent resident who has been outside Australia for an extended period should verify their status with Revenue NSW, as residency tests may apply.

Is the FHOG available for off-the-plan purchases?

Yes, provided the property is a new dwelling and the total value does not exceed the relevant cap. Off-the-plan purchases can also benefit from a deferral of the duty liability for up to 12 months in certain circumstances, though interest may apply.

What happens if I buy with a partner and one of us has owned property before?

The FHBAS requires that none of the purchasers have previously owned residential property or received a first home benefit. If one partner has previously owned property, the other partner cannot claim the concession, even if it is their own first purchase.

Do I pay stamp duty on the land and the building separately?

For a house and land package, duty is generally assessed on the dutiable value of the land at the date of the land contract. The building component is not subject to duty under the standard process, provided the land contract and building contract are with different parties and are genuinely separate. A combined house-and-land package with the same developer may attract duty on the total value.

Data Sources and Currency

This article is based on rates, thresholds, and scheme rules published by Revenue NSW. Key sources include:

Data current as at July 2026. Transfer duty thresholds are CPI-indexed and change annually. Concession rules, surcharge rates, and grant amounts are subject to legislative amendment. Verify with Revenue NSW or a licensed conveyancer.

Disclaimer

This article provides general information only and does not constitute financial, legal, property, or conveyancing advice. Stamp duty liability, concession eligibility, and surcharge status depend on individual circumstances including citizenship, residency, prior property ownership, and the specific characteristics of the transaction. Confirm all figures and your eligibility for any concession or grant with Revenue NSW or a licensed conveyancer or solicitor.