Stamp Duty in Australia: How It Works in Every State (2026)

Stamp duty — formally called transfer duty in most Australian states — is one of the largest upfront costs in a property transaction. Because every state and territory levies it independently, the same purchase price can produce a dramatically different bill depending on where the property sits, who is buying it and what type of property it is. This article explains how the tax works conceptually, why the liability varies so much across jurisdictions and where to find the current rates for your state.

What Is Transfer Duty?

Transfer duty is a state and territory tax charged on the purchase (or other dutiable transfer) of real property. Every state and territory revenue office administers the tax separately under its own legislation. The tax is commonly called stamp duty — a name left over from the era when a physical stamp was pressed onto paper deeds — but the current official name in most jurisdictions is transfer duty.

The tax is typically calculated on the dutiable value of the property, which is the higher of the purchase price or the unencumbered market value. It is the buyer's liability, not the seller's, and it must generally be paid at or before settlement.

Transfer duty on residential property is distinct from land tax, which is an annual holding tax on investment properties and land above certain thresholds. They operate under separate rules in every state.

How Sliding Scales Work

Transfer duty in Australia is calculated on a progressive (sliding scale) basis, not a flat percentage of the purchase price. Rates increase in steps as the dutiable value rises, with each band taxed at a different marginal rate. The total duty on a given price is the sum of the tax across each band — a concept closely analogous to how income tax brackets operate.

The practical effect is that duty rises faster than the purchase price as values move up the scale. A $500,000 property in the same state typically attracts proportionally less duty than a $1,500,000 property, because the lower value sits mostly in lower rate bands. Each state sets its own band boundaries and marginal rates, which is why comparisons across jurisdictions require checking the current schedule rather than applying a rule of thumb.

Why the Same Price Produces Different Duty Across States

Three variables drive the variation across jurisdictions.

Different rate schedules. Each state legislature sets its own sliding scale. The band boundaries and marginal rates are not harmonised nationally. A purchase that falls squarely in a low band in one state may sit in a high band in another at the same price.

Different concession structures. First home buyer concessions, off-the-plan concessions and pensioner concessions all vary by state. A buyer who qualifies for a full exemption in one state may receive only a partial discount in another and no relief at all in a third — on the same dollar purchase.

Different treatment of property types. Some states distinguish between new homes, off-the-plan purchases, vacant land and established homes for the purpose of concessions. A new apartment attracts very different duty outcomes across states depending on whether the state has an off-the-plan concession and how it is structured.

Revenue Offices by Jurisdiction

Each jurisdiction administers its own duty and publishes current rates, calculators and concession details on its official website. These are the authoritative sources — third-party calculators should be cross-checked against the official source before relying on any figure.

Concession thresholds and eligibility conditions change with each state budget. Always verify figures directly with the relevant revenue office before relying on any figure, including the above summary.

First Home Buyer Concessions

Most states provide a concession or full exemption for eligible first home buyers. The design varies considerably.

Threshold-based exemptions are the most common pattern: duty is waived or reduced up to a specified property value and full rates apply above the threshold. The thresholds are set by each state government and have been adjusted in recent years — sometimes significantly — in response to rising property prices.

Property type conditions matter in several states. South Australia's current full exemption applies only to new homes and vacant land, not established homes. Queensland introduced a full nil concession for new homes and vacant land for first home buyers from May 2025 while retaining a different (and lower) concession on established purchases. The distinction between new and established is increasingly important across the country.

Occupancy requirements apply universally. Concessions are available only to buyers who intend to occupy the property as their principal residence, commencing within a specified period of settlement (commonly 12 months) and continuing for a minimum continuous period (also commonly 12 months). Using a concession property as a rental before moving in, or selling quickly after, can trigger clawback of the duty.

Eligibility tests on prior ownership vary. States generally require that neither the applicant nor their spouse or partner has previously owned residential property in Australia. Some states have specific carve-outs or nuanced rules — check your state's revenue office for the precise test.

Off-the-Plan Concessions

Several states offer a separate off-the-plan concession, distinct from the first home buyer concession. Under these arrangements, duty on an off-the-plan purchase may be calculated on the land value at the time of contract rather than the completed dwelling value, or a deduction may apply to the construction component. The concession is intended to encourage new housing supply and is available in some states to investors as well as owner-occupiers, subject to conditions.

The design and availability of off-the-plan concessions has changed significantly across multiple states in recent years. Verify the current position for any off-the-plan contract with the relevant revenue office before exchanging.

When Duty Is Payable

Timing varies by state, but in most jurisdictions transfer duty is due at or before settlement. Lodging the transfer instrument with the revenue office (or the equivalent electronic transaction in PEXA or SYMPLI) is required within a specified timeframe after the contract or completion date — often 30 to 90 days depending on the state and transaction type. Late lodgement attracts penalties.

For off-the-plan purchases, the liability date in most states is the date of the contract (not the date of completion), which can mean duty must be assessed — and sometimes partially paid — years before settlement. Some states provide a deferred payment option for off-the-plan purchases; others require payment earlier. This is an area where the differences between states are material and professional advice is important.

Foreign Purchaser Surcharges

Most states and territories apply an additional transfer duty surcharge on residential property purchased by foreign persons or foreign corporations. These surcharges have increased substantially since their introduction and are levied on top of standard duty rates. The surcharge applies to the full dutiable value of the property.

The definition of a "foreign person" for duty purposes and the applicable rate vary by state and are set by each jurisdiction independently. Buyers who are not Australian citizens or permanent residents — including temporary residents, foreign students and overseas investors — should verify the applicable surcharge rate with the relevant revenue office before transacting.

Annual Property Tax Reforms

The ACT has been the leading jurisdiction in replacing stamp duty with an ongoing annual charge (general rates). The ACT's 20-year reform programme, begun in 2012, progressively expands the base of annual rates while reducing transfer duty. As at June 2026, the ACT is abolishing stamp duty for all first home buyers as a further step in this programme (verified via the ACT Revenue Office and the 2026-27 ACT Budget announcement of June 2026).

Other jurisdictions have not followed the ACT model in full, though the debate around duty-for-land-tax swaps has been active. No other state had implemented a comparable opt-in or mandatory annual property tax as a full replacement for transfer duty as at June 2026. Monitor each state's budget announcements — this is an active policy area.

Investment vs Owner-Occupied Purchases

Standard transfer duty rates are generally the same for investment and owner-occupied purchases. The difference lies entirely in concessions and exemptions, which typically require the buyer to occupy the property. An investor purchasing a property that will immediately become a rental receives no first home buyer concession, no off-the-plan owner-occupier concession and no pensioner concession. The full standard rates apply on the dutiable value.

Checking Your Position Before You Buy

The free Stamp Duty calculator at lenderbridge.com.au/stamp-duty provides indicative duty estimates across all 8 states and territories based on purchase price, property type and buyer status. The estimates are indicative only — they do not substitute for a formal assessment by the relevant revenue office and do not capture every concession or surcharge condition. Use the calculator to understand the order of magnitude of your liability and the variation across states, then verify the exact figure with the revenue office or your conveyancer.

Frequently Asked Questions

General information only, not credit assistance or financial product advice. LenderBridge connects borrowers and lenders; it does not advise or recommend. Check figures with your lender and the official source.