Stamp duty in New South Wales is a tiered transfer tax you pay once, upfront, when you buy property. In 2026, the thresholds are CPI-indexed each July and cover eight brackets from 1.25% to 7.0%. The cost is real money that leaves your deposit before the loan is funded, and every dollar of duty you pay is a dollar that does not reduce your loan-to-value ratio. For a first-home buyer purchasing at $750,000 in Sydney, the general duty would be approximately $29,000 — but under the First Home Buyers Assistance Scheme, that same buyer could pay nothing. If you are an Australian resident buying an established home above $1,000,000, or a foreign purchaser facing the 9% surcharge, the numbers change fast. Under APRA’s 3% serviceability buffer, paying $30,000 in duty instead of putting that money toward your deposit can lift your LVR by roughly 4 to 5 percentage points, pushing you into a higher interest-rate tier and shrinking your maximum loan.
NSW Transfer Duty Rates for 2026
Revenue NSW adjusts the duty thresholds each July in line with the Consumer Price Index. The legislated rates for the 2026 financial year are:
For a dutiable value of $18,000 or below, the duty is $1.25 for every $100, or part of $100, of the dutiable value. At the minimum, you pay $225 on a property valued at exactly $18,000.
For dutiable values from $18,001 to $38,000, the duty is $225 plus $1.50 for every $100 over $18,000. A property valued at $38,000 attracts duty of approximately $525.
For values from $38,001 to $103,000, you pay $525 plus $1.75 for every $100 over $38,000. At $103,000, the total reaches around $1,662.
For values from $103,001 to $387,000, the duty is $1,662 plus $3.50 for every $100 over $103,000. A $387,000 property generates duty of approximately $11,602.
For values from $387,001 to $1,290,000, the cost is $11,602 plus $4.50 for every $100 over $387,000. This bracket covers the bulk of Sydney apartment and townhouse purchases. At $750,000, the duty is roughly $27,940. At $1,000,000, it reaches approximately $39,190.
For values from $1,290,001 to $3,870,000 — the premium bracket — the rate rises to $52,237 plus $5.50 for every $100 over $1,290,000. A house at Sydney’s median of approximately $1,600,000 would attract duty of around $69,300.
For residential property above $3,870,000, a premium rate of $194,137 plus $7.00 for every $100 over $3,870,000 applies.
These rates apply to the full dutiable value, including any GST component for new properties. A separate transfer of land only, or a transaction involving a mixed-use property, may attract a different set of rules, and you should confirm the exact classification with Revenue NSW before settlement.
First-Home Buyer Assistance in NSW
The First Home Buyers Assistance Scheme (FHBAS) is the main relief channel for first-home buyers in New South Wales. The rules are straightforward:
If you buy a new or existing home with a dutiable value of $800,000 or less, you pay no transfer duty at all. The exemption is full — your duty bill is zero.
If the home is valued between $800,001 and $1,000,000, you receive a concessional rate that phases out as the price rises. The closer you are to $800,000, the more duty you save. At $1,000,000 and above, the concession is fully exhausted and you pay the general rate.
If you are buying vacant residential land to build your first home, the full exemption applies for land valued at $350,000 or below. Between $350,001 and $450,000, a partial concession applies.
To qualify, at least one buyer must be an Australian citizen, permanent resident, or New Zealand citizen holding a special category visa. The buyer must move into the home within 12 months of settlement and live there for at least six continuous months. The scheme applies per transaction, not per person — meaning a couple buying together can access it once.
For a buyer purchasing at Sydney’s entry-level apartment price of $650,000, the FHBAS saves roughly $22,000 in duty. That $22,000 stays in the deposit and directly reduces the LVR. On a property at that price, a 20% deposit is $130,000. If $22,000 goes to duty, the effective equity falls to $108,000 — an LVR of 83.4% instead of 80%. Crossing the 80% LVR threshold typically triggers Lenders Mortgage Insurance and shifts you into a higher interest-rate tier. The saving is therefore not just $22,000 at settlement; it compounds across the life of the loan in the form of a lower rate and no LMI premium.
How Stamp Duty Affects Your Borrowing Capacity
Stamp duty is a cash cost you must pay from savings before the lender disburses funds. It cannot be capitalised into the loan for most standard residential mortgages. When a buyer has $100,000 in savings and faces $30,000 in duty, the effective deposit available for the property drops to $70,000.
Lenders assess your application on the net deposit. For a property priced at $700,000, a $70,000 deposit represents a 10% equity stake and a 90% LVR. At 90% LVR, lenders apply a risk margin to the interest rate — often 10 to 30 basis points above the rate offered at 80% LVR. APRA’s 3% serviceability buffer then tests your repayment capacity at roughly 3 percentage points above that already-higher product rate. A borrower who could qualify for a $630,000 loan at 80% LVR might only qualify for $560,000 at 90% LVR — a $70,000 reduction in maximum borrowing power, driven entirely by the stamp duty cost.
The effect is larger at higher price points. At $1,200,000, with general duty of approximately $48,000, the LVR impact alone can reduce assessed borrowing capacity by $80,000 to $110,000 for a single-income applicant.
For foreign purchasers, the mathematics is sharper. The 9% foreign purchaser surcharge is payable on top of the general rate. A foreign buyer paying $1,000,000 for a Sydney apartment faces general duty of roughly $39,190 plus a surcharge of $90,000 — a combined $129,190. That sum must come from savings. The effective LVR on a 20% cash deposit jumps above 90%, and many lenders either decline the application or impose stricter serviceability tests. For a detailed explanation of how APRA’s rules shrink borrowing limits, read our guide on APRA’s 3% serviceability buffer and borrowing power in 2026.
The interaction between stamp duty and the Medicare Levy Surcharge is also worth considering: both are cash costs that reduce the net income or savings pool lenders use to assess your application. An Arrivau adviser can model the combined effect on your specific numbers.
Foreign Purchaser Surcharge in NSW
New South Wales imposes a surcharge purchaser duty of 9% on the dutiable value of residential property acquired by a foreign person. The surcharge is in addition to the general transfer duty rates described above.
A foreign person includes an individual who is not an Australian citizen, not a permanent resident, and not a New Zealand citizen holding a special category visa. Temporary residents — including those on a 482, 485, or student visa — generally fall within the definition. The surcharge also applies to foreign corporations and trusts with a foreign beneficiary.
The surcharge is calculated on the full purchase price (dutiable value), not on the difference after concessions. If a foreign buyer purchases at $900,000, the general duty is approximately $34,700 and the surcharge is $81,000 — a total of $115,700. On a $1,500,000 property, the combined burden can exceed $200,000.
Some exemptions apply. A foreign person buying as a joint tenant with an Australian citizen spouse may qualify for relief, depending on the specific structure. Developers acquiring land for a substantial subdivision may also be exempt from the surcharge. These are narrow carve-outs, and you should not assume eligibility without specific advice.
First Home Owner Grant in NSW
The NSW First Home Owner Grant (FHOG) is a $10,000 payment available to first-home buyers purchasing or building a new home. The key conditions:
The property must be a new home — meaning it has not been previously occupied or sold as a place of residence. Off-the-plan apartments, house-and-land packages, and owner-builder constructions all qualify if the construction is new.
The total value of the home (house and land combined) must not exceed $600,000. This cap has not changed in several years, and in Sydney, it limits the grant to entry-level apartments in outer suburbs and regional centres.
The buyer, or at least one buyer in a joint application, must be an Australian citizen, permanent resident, or eligible New Zealand citizen. The buyer must move into the home within 12 months of completion and occupy it for at least six continuous months.
For a first-home buyer purchasing a new apartment in Western Sydney at $580,000, the FHOG provides $10,000 in cash after settlement or at the first progress payment for a construction loan. Combined with the FHBAS full exemption at that price, a buyer can enter the market with zero stamp duty and a $10,000 grant — effectively a starting equity boost of approximately $32,000 to $34,000 compared with a general-rate buyer at the same price point.
Frequently Asked Questions
How much stamp duty do I pay on a $750,000 home in NSW in 2026?
If you are a first-home buyer who qualifies for the FHBAS, your duty at $750,000 is zero — the full exemption applies for purchases up to $800,000. If you are not a first-home buyer, the general duty on $750,000 is approximately $27,940, calculated as $11,602 plus $4.50 per $100 on the portion between $387,001 and $750,000. A foreign purchaser would pay an additional surcharge of $67,500, making the total approximately $95,440. These are estimates — Revenue NSW publishes an online calculator that provides exact figures, and your conveyancer will confirm the final amount before settlement.
Can I add stamp duty to my home loan in NSW?
Most mainstream lenders do not allow capitalising stamp duty into the loan for an owner-occupied purchase. The duty must be paid from your savings at or before settlement, and the lender will verify the source of funds as part of the application. A small number of lenders allow capitalisation under specific product structures — typically for investment loans or construction lending — but these are exceptions. Treat stamp duty as a cash cost that directly reduces your deposit, and factor it into your savings plan accordingly.
Does the foreign purchaser surcharge apply to permanent residents in NSW?
No. Australian permanent residents and New Zealand citizens holding a special category visa (subclass 444) are not considered foreign persons for the purpose of the surcharge. If you hold a provisional or temporary visa — including partner visa subclass 820 prior to the permanent stage, or a 482 skilled worker visa — you are generally considered a foreign person and the 9% surcharge applies. The test is applied at the date of the contract, not at settlement. If you obtain permanent residency between exchange and settlement, the surcharge may still apply unless the contract provides otherwise. Confirm your status with Revenue NSW before signing.
What happens if I buy just below the $800,000 FHBAS threshold?
The FHBAS exemption is a cliff-edge design with a phase-out zone. At $800,000 or below, you pay zero duty. At $800,001, the concession begins to phase out, meaning you pay a reduced amount rather than the full general rate. The phase-out formula reduces the concession gradually until it reaches zero at $1,000,000. If you are negotiating a purchase price in the $790,000 to $810,000 range, the duty differential between $799,000 and $801,000 can be substantial — potentially $20,000 or more — so it is worth calculating the exact figure with your conveyancer before making an offer.
Data Sources
All duty rates, thresholds, and concession rules in this article are sourced from official New South Wales government publications as at July 2026:
- Revenue NSW — Transfer duty rates and thresholds for 2026: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty — The authoritative source for all NSW transfer duty brackets, including the annual CPI adjustment.
- Revenue NSW — First Home Buyers Assistance Scheme: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyers-assistance — Details the full exemption up to $800,000 and the concessional phase-out to $1,000,000.
- Revenue NSW — Surcharge purchaser duty: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/surcharge-purchaser-duty — Sets the 9% foreign purchaser surcharge and defines foreign person status.
- Revenue NSW — First Home Owner Grant: https://www.revenue.nsw.gov.au/grants-schemes/first-home-owner-grant-new-homes — The $10,000 grant, eligibility criteria, and the $600,000 cap.
- Australian Prudential Regulation Authority — Prudential Standard APS 220: Credit Risk Management: https://www.apra.gov.au/aps-220-credit-risk-management — The 3% serviceability buffer and its effect on borrowing capacity.
How an Arrivau Adviser Can Help
Stamp duty is the single largest upfront cost most buyers face, and the rules differ by state, buyer type, and property value. An Arrivau licensed mortgage adviser can calculate your exact duty, model how it interacts with your deposit and LVR, and identify lenders who assess your application on the strongest terms. We respond within one business day.
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Disclaimer: This article is for general informational purposes only and does not constitute financial, tax, or legal advice. Stamp duty rates and thresholds are based on Revenue NSW publications as at July 2026 and are subject to annual CPI adjustment and legislative change. For personalised advice on your borrowing capacity, stamp duty position, and loan structure, speak with an Arrivau licensed mortgage adviser.