Stamp duty (transfer duty) is a state tax you pay when you buy property in Australia, and it's usually the biggest buying cost. On a A$1,000,000 home it's A$39,188 in New South Wales. On a A$800,000 home it's A$43,070 in Victoria. Foreign buyers pay an extra 9% in NSW or 8% in Victoria. They also need federal approval, and until 31 March 2027 most can't buy established homes at all.
Key points
- Each state sets its own stamp duty. This guide covers NSW and Victoria.
- First home buyers pay no duty up to A$800,000 in NSW and A$600,000 in Victoria, with reduced duty above that.
- Foreign buyers pay a surcharge on top: 9% in NSW (surcharge purchaser duty) and 8% in Victoria (foreign purchaser additional duty).
- Foreign persons generally need approval through the FIRB process before buying, and must pay an application fee.
- From 1 April 2025 to 31 March 2027, foreign persons are banned from buying established homes, with limited exceptions. New homes and vacant land are still possible with approval.
How stamp duty works in NSW
Revenue NSW charges transfer duty in bands on the dutiable value, which is usually the price. The thresholds are indexed every 1 July. From 1 July 2026 the rate reaches 4.5% between A$387,000 and A$1,290,000, and 5.5% above that. Premium property duty of 7% applies to the part of the price over A$3,870,000.
| Price | NSW transfer duty |
|---|---|
| A$600,000 | A$21,188 |
| A$1,000,000 | A$39,188 |
| A$1,500,000 | A$63,788 |
The rates depend on the date of your contract, so a contract signed before 1 July 2026 uses the earlier thresholds.
First home buyers in NSW
Under the First Home Buyers Assistance scheme, you pay no transfer duty on a new or existing home worth up to A$800,000. You pay reduced duty between that and A$1,000,000. For vacant land the limits are A$350,000 and A$450,000. To qualify:
- at least one buyer must be an Australian citizen or permanent resident
- you and your partner must never have owned residential property in Australia
- you must move in within 12 months and live there for at least 12 continuous months
Example. A first home buyer pays A$0 on a A$750,000 home in NSW, and about A$17,344 on a A$900,000 home. The second figure is our estimate of the concession, so check it with the Revenue NSW calculator.
Every cost for your price and situation in Australia, including taxes for buyers from abroad.
How stamp duty works in Victoria
The State Revenue Office Victoria charges land transfer duty at 1.4% up to A$25,000, 2.4% from A$25,000 to A$130,000 and 6% from A$130,000 to A$960,000. Between A$960,000 and A$2 million the duty is a flat 5.5% of the whole price. Above A$2 million it's A$110,000 plus 6.5% of the amount over A$2 million.
| Price | Victorian land transfer duty |
|---|---|
| A$600,000 | A$31,070 |
| A$800,000 | A$43,070 |
| A$1,200,000 | A$66,000 |
If you'll live in the home, a lower principal place of residence rate can apply between A$130,000 and A$550,000. Our calculator shows the general rate.
First home buyers in Victoria
First home buyers pay no duty on a home worth up to A$600,000, and reduced duty up to A$750,000. You must live in the home, and there are other conditions, so check them with the State Revenue Office.
Example. A first home buyer pays A$0 on a A$550,000 home in Victoria, and about A$24,713 on a A$700,000 home. The second figure is our estimate of the sliding concession.
Foreign buyer stamp duty in Australia
On top of normal duty, foreign persons pay a surcharge on residential property:
- NSW surcharge purchaser duty: 9% of the dutiable value. The rate went up from 8% to 9% for transactions on or after 1 January 2025. It's paid on the foreign person's share of the property. Even if you qualify for the first home buyer scheme, you still pay the surcharge. New Zealand citizens who aren't ordinarily resident in Australia can still be liable.
- Victoria foreign purchaser additional duty: 8% of the value of residential property.
Both states also charge foreign owners an extra yearly land tax surcharge, and the federal government charges a vacancy fee if a foreign-owned home is empty for more than half the year.
| Example (new home, foreign buyer) | Normal duty | Foreign surcharge |
|---|---|---|
| NSW, A$1,000,000 | A$39,188 | A$90,000 |
| Victoria, A$800,000 | A$43,070 | A$64,000 |
Add the FIRB fee of A$15,600 (2026–27, for a new home over A$75,000 and up to A$1 million), plus registration and legal costs.
Can foreigners buy property in Australia?
Yes, but with tight limits. A "foreign person" generally needs approval from the Treasurer before buying residential land, whatever the price. Applications are made online through the ATO. Australian citizens, permanent residents and New Zealand citizens on a Special Category Visa generally don't need approval. Temporary residents, such as people on student or work visas, generally do.
The ban on buying established homes
From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents, are generally banned from buying established dwellings. Exceptions are narrow. They cover things like redevelopments that add at least 20 homes, build-to-rent and other housing at commercial scale, and some employers housing Pacific and Timor-Leste workers. Land that has ever had a home on it counts as established.
What foreign persons can usually still buy, with approval:
- New dwellings that haven't been sold or lived in before
- Vacant residential land, usually on condition that you build within four years and don't sell before the home is finished
FIRB fees
You pay a fee when you apply. For 2026–27, the fee for residential land other than established dwellings is:
| Price | Fee |
|---|---|
| Under A$75,000 | A$4,600 |
| A$75,000 to A$1 million | A$15,600 |
| Up to A$2 million | A$31,300 |
| Up to A$3 million | A$62,600 |
Fees are indexed each year. Fees for established dwellings are much higher (A$46,800 up to A$1 million), but they only matter if you fall within an exception to the ban.
Common mistakes
- Signing an unconditional contract before FIRB approval. Make the contract conditional on approval.
- Assuming the first home buyer exemption cancels the surcharge. It doesn't.
- Using last year's thresholds. NSW thresholds change every 1 July.
- Forgetting yearly costs. Land tax surcharges and the vacancy fee continue after you buy.
Tax back home
Buying abroad can create tax to pay and forms to file where you live, not just where you buy.
- UK residents are generally taxed on their worldwide income and gains. Rent from a home abroad goes on your Self Assessment return, and when you sell you may owe UK Capital Gains Tax. You can usually claim Foreign Tax Credit Relief for tax already paid in the other country, so the same income isn't fully taxed twice.
- US citizens and green-card holders are taxed on worldwide income wherever they live. Report foreign rental income on your US return. If your foreign bank accounts together go over $10,000 at any time in the year, file an FBAR (FinCEN Form 114), and you may also need Form 8938 (FATCA) if your foreign financial assets pass its thresholds. A home you own directly isn't reported on Form 8938, but the foreign account you pay through may be.
- Everyone else: check how your country taxes foreign rent and gains, and whether it has a tax treaty with the country you're buying in.
Plan this before you buy, ideally with a tax adviser who knows both countries.
Work out your own figures
Use our NSW or Victoria calculator to see stamp duty, any foreign surcharge and other buying costs for your price. Then confirm with Revenue NSW or the State Revenue Office before you sign.
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