NSW transfer duty in 2026-27 uses CPI-indexed thresholds that took effect from 1 July 2026. A $750,000 home in Sydney costs approximately $27,937 in stamp duty for a non-first-home buyer — but drops to $0 for an eligible first home buyer under the First Home Buyers Assistance Scheme. Foreign purchasers face an additional 9% surcharge on top of the standard rates, meaning the same $750,000 property attracts an extra $67,500 just in foreign surcharge duty. Unlike your home loan deposit, stamp duty is an upfront cost lenders do not finance — it must be saved separately and paid at settlement.
NSW Transfer Duty Rates 2026-27: Full Tiered Scale
Revenue NSW publishes CPI-indexed thresholds each July. The 2026-27 rates are structured across seven brackets. Understanding which bracket your purchase falls into determines your total duty.
Tiered rates applicable from 1 July 2026:
For purchases up to $18,000, duty is calculated at 1.25% of the dutiable value — a minimum of $10 applies.
Between $18,001 and $38,000, the calculation is $225 plus 1.5% of the amount exceeding $18,000. This means a $30,000 vacant land purchase attracts $225 + 1.5% × $12,000 = $405.
Between $38,001 and $103,000, the formula is $525 plus 1.75% of the excess over $38,000. A $100,000 purchase yields $525 + 1.75% × $62,000 = $1,610.
Between $103,001 and $387,000, duty becomes $1,662 plus 3.5% of the excess over $103,000.
The most commonly encountered bracket for Sydney buyers runs from $387,001 to $1,290,000: $11,602 plus 4.5% of the excess over $387,000.
For higher-value properties between $1,290,001 and $3,870,000, the rate is $52,237 plus 5.5% of the excess over $1,290,000.
The premium bracket above $3,870,000 attracts $194,137 plus 7% of the excess.
Worked Example: $900,000 Sydney Apartment (Non-First-Home Buyer)
A $900,000 purchase falls in the $387,001–$1,290,000 bracket. The calculation is $11,602 plus 4.5% of ($900,000 − $387,000) = $11,602 + 4.5% × $513,000 = $11,602 + $23,085 = $34,687. This is the amount payable at settlement before any concessions.
Worked Example: $1,500,000 House
A $1,500,000 purchase falls in the $1,290,001–$3,870,000 bracket: $52,237 plus 5.5% of ($1,500,000 − $1,290,000) = $52,237 + 5.5% × $210,000 = $52,237 + $11,550 = $63,787.
First Home Buyers Assistance Scheme: $800K Full Exemption
The FHBAS is the most valuable state benefit for NSW first home buyers. For purchases up to $800,000 — covering both new and existing homes — the transfer duty is fully exempt. Between $800,001 and $1,000,000, a sliding scale concession applies, with the concession amount reducing as the price approaches the upper threshold.
The sliding scale works as follows: the concession equals the full duty amount multiplied by ($1,000,000 minus the purchase price) divided by $200,000. Once the purchase price reaches $1,000,000, no concession remains.
Worked Example: $900,000 First Home Purchase
Full duty on $900,000 is $34,687 (calculated above). The concession fraction is ($1,000,000 − $900,000) ÷ $200,000 = 0.5, meaning half the duty is waived. The first home buyer pays $34,687 × 0.5 = $17,344 — a saving of $17,343 compared to the standard rate.
Worked Example: $750,000 First Home Purchase
At $750,000, the full standard duty would be $27,937. But since the purchase is under $800,000, the FHBAS delivers a full exemption: $0 stamp duty. That is $27,937 kept in the buyer's pocket for other settlement costs or the deposit itself.
Vacant land purchases also qualify: full exemption up to $350,000 with a sliding concession through to $450,000.
Eligibility requires at least one applicant to be an Australian citizen or permanent resident, at least 18 years old, never having owned residential property in Australia previously, and occupying the home as a principal place of residence for 12 continuous months starting within 12 months of settlement.
The First Home Owner Grant of $10,000 for new homes up to $600,000 stacks on top — but the FHBAS is the larger financial benefit for most Sydney buyers given the median unit and house prices in the market. For context on how these benefits work alongside financing, see our guide on NSW first home buyer loans.
Foreign Purchaser Surcharge: 9% on Top
NSW imposes a 9% surcharge purchaser duty on residential-related property acquired by foreign individuals, corporations, and trusts. This surcharge is calculated on the full dutiable value and is additional to the standard transfer duty — it is not subject to the FHBAS or any other concession.
Worked Example: Foreign Buyer Purchasing a $900,000 Apartment
Standard duty: $34,687. Foreign surcharge: 9% × $900,000 = $81,000. Total duty payable: $115,687 — more than triple the standard amount. On a $1,500,000 house, the surcharge alone is $135,000, bringing total duty to $198,787.
A 5% surcharge land tax also applies to foreign owners with no tax-free threshold, meaning the full unimproved land value is subject to the surcharge annually. This makes holding costs materially higher for foreign investors compared to local buyers. For more on how foreign buyers navigate the financing side, see our foreign buyer home loans guide.
From 1 July 2026, a new refund mechanism allows foreign purchasers of operational build-to-rent properties and certain retirement villages to recover the 9% surcharge duty, subject to conditions including a minimum five-year operational period.
NSW vs VIC: Same Property, Different Duty
Comparing the two largest state markets reveals meaningful differences. Take a $750,000 home purchased by a non-first-home buyer:
In NSW, standard duty is $27,937 (calculated as $11,602 + 4.5% × $363,000). In Victoria, the same $750,000 property attracts $40,070 in duty ($2,870 + 6% × $620,000) — a difference of $12,133.
For first home buyers, the gap widens further. NSW fully exempts a $750,000 purchase ($0 duty), while Victoria's first home concession phases out completely at $750,000 — meaning the VIC first home buyer pays the full $40,070. That is a $40,070 difference on the same priced home, purely due to state policy design.
For foreign buyers, NSW's 9% surcharge edges out VIC's 8%, meaning the NSW foreign buyer on a $750,000 property pays an extra $7,500 in surcharge compared to VIC — but the base duty is lower, partially offsetting the difference.
Connecting Stamp Duty to Your Mortgage
Stamp duty is an upfront settlement cost, not a cost that lenders capitalise into the loan. This means it must be funded from savings — separate from the deposit. For a $900,000 purchase in NSW with a 20% deposit ($180,000), the buyer also needs $34,687 for stamp duty (if not eligible for FHBAS), plus legal fees, building inspection, and loan application costs. Total upfront cash required can approach $220,000 before the loan funds are drawn.
This is where the FHBAS becomes genuinely transformative. At $800,000 with a 5% deposit through the federal First Home Guarantee ($40,000) and zero stamp duty, the total upfront cash requirement collapses to approximately $45,000–$50,000 including conveyancing and inspection costs — a threshold within reach for many more buyers.
Use our stamp duty calculator to model your specific scenario before talking to a lender about borrowing capacity.
Data Source
All rates and thresholds in this article are sourced from Revenue NSW, effective 1 July 2026 (CPI-indexed for the 2026-27 financial year). First Home Buyers Assistance Scheme thresholds and foreign surcharge rates verified against the Revenue NSW website as at July 2026.
FAQ
Does the FHBAS apply to existing homes or only new builds?
Both. Unlike the FHOG which is restricted to new or substantially renovated homes, the FHBAS covers new and existing dwellings equally. A $790,000 established apartment attracts zero stamp duty for an eligible first home buyer.
Can a permanent resident couple qualify if one has previously owned property overseas?
Yes, provided neither has owned residential property in Australia before. Previous overseas ownership does not disqualify you from the FHBAS. The test is Australian residential property ownership only.
Is the 9% foreign surcharge refundable if I later become a permanent resident?
Generally, no. The surcharge is assessed at the date of the transaction. However, if you hold a permanent resident visa at the time of purchase but have not yet completed the 200-day residency requirement (spent fewer than 200 days in Australia in the preceding 12 months), you may be able to seek a refund once you meet the residency condition. Check with Revenue NSW for your specific circumstances.
How does off-the-plan affect stamp duty timing?
For off-the-plan purchases, the duty liability is generally deferred — typically up to 15 months from the contract date or until settlement, whichever occurs first. This deferral can provide meaningful cash flow relief, but the dutiable value is based on the contract price, not the completed value.
Can I use the FHOG and FHBAS simultaneously?
Yes. If you buy a new home valued at or under $600,000, you can claim both the $10,000 FHOG and the full stamp duty exemption under FHBAS. Above $600,000, the FHOG drops off but the FHBAS continues providing benefits through to $1,000,000.
This article provides general information only and does not constitute financial or legal advice. Stamp duty rates and thresholds may change. Confirm your specific liability with Revenue NSW or a qualified conveyancer before exchange. For personalised guidance on your property purchase, connect with an Arrivau advisor — typically within one business day.