When buying property in New South Wales (NSW), one of the key costs to consider is transfer duty (commonly known as stamp duty). This tax is levied by the NSW government on property transactions and can significantly impact your budget. In this guide, we’ll explain how transfer duty works, current transfer duty rates, and how to use a stamp duty calculator to estimate your costs.
What Is Transfer Duty (Stamp Duty)?
Transfer duty is a state tax applied when you purchase or acquire property, including:
- Residential homes
- Investment properties
- Vacant land
- Commercial real estate
The amount you pay depends on the property’s purchase price or market value (whichever is higher). First-home buyers may be eligible for exemptions or concessions, while other buyers must account for this cost in their budget.
Current Transfer Duty Rates in NSW (2024)
The NSW government uses a sliding scale to determine transfer duty rates, meaning the percentage increases with the property’s value. Here’s a breakdown of the current rates for residential properties:
| Property Value | Transfer Duty Rate |
| $0 – $16,000 | $1.25 per $100 |
| $16,001 – $80,000 | $200 + $1.50 per $100 above $16,000 |
| $80,001 – $300,000 | $1,160 + $1.75 per $100 above $80,000 |
| $300,001 – $1,000,000 | $5,060 + $3.50 per $100 above $300,000 |
| Over $1,000,000 | $29,560 + $4.50 per $100 above $1,000,000 |
For example, if you buy a home for $800,000, your transfer duty would be:
- $5,060 (for the first $300,000)
- Plus $17,500 ($3.50 per $100 for the remaining $500,000)
- Total duty = $22,560
How to Use a Stamp Duty Calculator
Calculating transfer duty manually can be complex, so using an online stamp duty calc is the easiest way to estimate costs. These tools consider:
- Property value
- Property type (residential, commercial, land)
- Buyer type (first-home buyer, investor, etc.)
Simply enter the purchase price, and the calculator will provide an instant estimate based on current transfer duty rates.
Exemptions and Concessions
Some buyers may qualify for reduced or exempt transfer duty:
- First-home buyers: Full exemption for properties under $800,000, with concessions up to $1,000,000.
- Principal place of residence (PPR): Lower rates may apply compared to investment properties.
- Pensioners & seniors: Discounts available in certain cases.
Planning for Transfer Duty
Since transfer duty can add tens of thousands to your purchase cost, it’s essential to:
1. Budget early: Include duty in your savings plan.
2. Check eligibility for concessions: First-home buyers should review NSW Revenue’s latest rules.
3. Use a stamp duty calculator: Get accurate estimates before making an offer.
Final Thoughts
Understanding transfer duty rates in NSW helps buyers avoid unexpected expenses. Whether you’re a first-home buyer or investor, using a stamp duty calculator ensures you’re financially prepared. Stay updated with NSW Revenue’s latest policies, as rates and exemptions can change.
By factoring in transfer duty early, you can make a smarter property investment in New South Wales.
