Transfer duty, still widely called stamp duty, is usually the largest single cost after the deposit. It is payable to Revenue NSW within three months of exchange.
The rates below are the current published brackets. They are reproduced here for reference, and the calculation should always be confirmed against the Revenue NSW calculator for your specific purchase.
Duty is calculated on the dutiable value, which is normally the purchase price or the market value, whichever is higher.
| Dutiable value | Duty payable |
|---|---|
| $0 to $18,000 | $1.25 per $100, minimum $20 |
| $18,001 to $38,000 | $225 plus $1.50 per $100 over $18,000 |
| $38,001 to $103,000 | $525 plus $1.75 per $100 over $38,000 |
| $103,001 to $387,000 | $1,662 plus $3.50 per $100 over $103,000 |
| $387,001 to $1,290,000 | $11,602 plus $4.50 per $100 over $387,000 |
| Over $1,290,000 | $52,237 plus $5.50 per $100 over $1,290,000 |
Most Sydney house purchases fall in the top two brackets, which is why duty on a typical purchase runs well into five figures. Source and calculator: Revenue NSW, how to calculate transfer duty.
A higher rate applies to residential property above a premium threshold.
| Threshold | Duty payable |
|---|---|
| Residential property over $3,870,000 | $194,137 plus $7.00 per $100 over $3,870,000 |
Premium duty applies to residential land only. It is relevant across much of Sydney’s eastern suburbs, lower north shore and northern beaches, where it adds materially to the cost of a purchase.
Which rate year applies is set by the date of the contract, or by the transfer date where there is no contract. A purchase exchanged in one financial year and settled in the next is assessed on the contract date.
Eligible first home buyers pay no duty below the exemption threshold and a reduced amount in the concession band.
| Purchase type | Full exemption | Concession applies |
|---|---|---|
| New or existing home | Up to and including $800,000 | Above $800,000 and below $1,000,000 |
| Vacant land to build on | Up to and including $350,000 | Above $350,000 and below $450,000 |
These thresholds have applied to contracts exchanged since 1 July 2023 under the First Home Buyers Assistance Scheme. Eligibility conditions apply, including a residence requirement, and they are set out by Revenue NSW rather than by your lender.
Work out your own figure with the stamp duty calculator, and read the first home buyer duty exemption for the eligibility detail.
Transfer duty is payable within three months of the date of exchange, although in practice it is usually paid at settlement by your conveyancer as part of the settlement figures. If settlement falls more than three months after exchange, which happens with off the plan and some delayed settlements, the duty may fall due before you receive the keys.
Not directly, because duty is a government charge rather than part of the purchase price, and lenders calculate the loan against the property value. In practice it is funded from your own cash, which is why duty should be budgeted alongside the deposit rather than treated as an afterthought when the settlement figures arrive.
No. The First Home Buyers Assistance Scheme requires you to move into the property and live in it for a continuous period, so a purchase intended solely as an investment does not qualify. The residence requirement is a condition of the concession, and Revenue NSW can reassess duty if the condition is not met after settlement.
The general transfer duty rates in the table apply to commercial purchases as well, but none of the first home buyer exemptions or concessions are available, and premium property duty applies only to residential land. Commercial buyers should budget the full duty amount as a cash cost, since there is no concession to reduce it.
Duty is the cost most often underestimated, because it does not appear in the loan figure a lender quotes you. Work it out before you bid, not after.
Read more about residential lending or buying with a low deposit.
Ask us to work out your total purchase costs.
Paritosh Wadhwani | Director and Principal Broker, APW Finance
Member of the Finance Brokers Association of Australia (FBAA). Arranging residential, commercial and specialist lending for Sydney clients across a panel of more than 50 lenders.
APW Finance Pty Ltd, 304/20a Lexington Drive, Bella Vista NSW 2153. Email: info@apwfinance.com. Phone: +61 447 959 546.
ACN 620 646 479 | ABN 79 620 646 479
This guide is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial or credit advice. Lending criteria, interest rates, duty thresholds and government schemes change, and every application is subject to lender approval. Consider whether this information suits your circumstances and seek independent advice before acting. Figures quoted are current at the date below and should be confirmed before you rely on them. Last reviewed: October 2026.
APW Finance Pty Ltd delivers expert lending solutions with personalised service, empowering clients across residential, commercial, and business sectors.