Understanding Stamp Duty: A State-by-State Guide
Navigating the Complex World of Stamp Duty
Buying a property is a big step, and one of the significant upfront costs you'll encounter is stamp duty. This state-imposed tax can vary significantly depending on where you're purchasing, the property's value, and your specific circumstances. Let's break down the complexities of stamp duty across Australia, offering a clear and concise guide to help you understand your potential costs.
What is Stamp Duty?
Stamp duty is essentially a tax levied by state governments on the purchase of assets, including real estate. It's a crucial factor to consider when calculating the total cost of a new home. The amount you'll pay depends on several factors, including:
- The state or territory you're buying in: Each state has its own calculation methods and rates.
- The property value: Generally, the more expensive the property, the higher the stamp duty.
- The type of property: Vacant land typically has lower stamp duty compared to established homes.
- Whether you're a first home buyer, investor, or owner-occupier: Different categories may have varying rates or exemptions.
A State-by-State Breakdown of Stamp Duty
First-time buyers purchasing a home valued under a certain threshold may be eligible for a full or partial exemption from stamp duty. It's important to check the current thresholds and rates on the State Revenue Office website.
New South Wales (NSW)
- Transfer duty: The primary tax on property purchases.
- Standard rates: Apply to most properties.
- Premium rates: For residential properties valued over $3 million.
- Concessions: Available for first home buyers and pensioners.
- Calculator: Use the NSW Revenue Office's transfer or land or business revenue calculator for accurate calculations.
| Property Value | Duty Rate |
| $0 to $16,000 | $1.25 per $100 with a minimum duty of $10, before 1 February 2024 |
| $16,000 to $35,000 | $200 + $1.50 per $100 over $16,000 |
| $35,000 to $93,000 | $485 + $1.75 per $100 over $35,000 |
| $93,000 to $351,000 | $1,500 + $3.50 per $100 over $93,000 |
| $351,000 to $1,168,000 | $10,530 + $4.50 per $100 over $351,000 |
| Over $1,168,000 | $47,295 + $5.50 per $100 over $1,168,000 |
Premium Transfer Duty Rates:
| Property Value | Duty Rate |
| Over $3,505,000 | $175,830 + $7.00 per $100 over $3,505,000 |
From 1 July 2023, a full exemption from transfer duty will be available if you are buying a new or existing home valued up to $800,000, while homes valued over $800,000 and less than $1,000,000 may qualify for a concessional rate.
If you are purchasing vacant land on which you intend to build a home, you may receive an exemption for land valued up to $350,000 and a concessional rate for land valued over $350,000 and less than $450,000.
Source: NSW Revenue.
Victoria
- General rates: Apply to most property purchases.
- Concessions: Available for first home buyers and pensioners.
- Foreign purchaser additional duty: Applies to foreign buyers.
- Calculator: Use the State Revenue Office of Victoria's calculator for accurate calculations.
| Property Value | Duty Rate |
| $0 to $25,000 | 1.4% of the dutiable value of the property |
| $25,000 to $130,000 | $350 plus 2.4% of the dutiable value of more than $25,000 |
| $130,000 to $960,000 | $2870 plus 6% of the dutiable value of more than $130,000 |
| $960,000 to $2,000,000 | 5.5% of the dutiable value |
| Over $2,000,000 | $110,000 plus 6.5% of the dutiable value of more than $2,000,000 |
Source: State Revenue Office of Victoria General land transfer duty current rates
Queensland
Queensland generally has lower stamp duty rates compared to other states. However, foreign purchasers face an additional 7% duty.
- Lower rates: Compared to other states.
- Concessions: Available for first home buyers.
- Foreign purchaser additional duty: Applies to foreign buyers.
- Calculator: Use the Queensland Revenue Office's calculator for accurate calculations.
| Dutiable Value | Duty Rate |
| Not over $5,000 | None |
| $5,000 to $75,000 | $1.50 per $100 |
| $75,000 to $540,000 | $1,050 + $3.50 per $100 |
| $540,000 to $1,000,000 | $17,325 + $4.50 per $100 |
| Over $1,000,000 | $38,025 + $5.75 per $100 |
Western Australia (WA)
- General rates: Apply to most property purchases.
- Concessional rates: Available for first home buyers.
- Exemptions: For specific transactions like transfers between spouses.
- Calculator: Use the WA Stamp Duty Assessment calculator for accurate calculations.
WA General Stamp Duty Rates
| Property Value | Duty rate |
| $0 to $120,000 | $1.90 per $100 or part thereof |
| $120,001 to $150,000 | $2,280 + $2.85 per $100 or part thereof above $120,000 |
| $150,001 to $360,000 | $3,135 + $3.80 per $100 or part thereof above $150,000 |
| $360,001 to $725,000 | $11,115 + $4.75 per $100 or part thereof above $360,000 |
| Over $725,000 | $28,453 + $5.15 per $100 or part thereof above $725,000 |
First Home Buyer Rates
| Property Value (Home) | Duty Rate |
| $0 to $430,000 | None |
| $430,001 to $530,000 | $19.19 per $100 or part thereof above $430,000 |
| Over $530,000 | Residential duty rates may apply |
| Property value (Land) | |
| $0 to $300,000 | None |
| $300,001 to $400,000 | $13.01 per $100 or part thereof above $300,000 |
| $400,001 and above | Residential duty rates may apply |
Source: WA Stamp Duty Assessment
South Australia (SA)
- Sliding scale: Rates increase with property value.
- Foreign purchaser additional duty: Applies to foreign buyers.
- Concessions: Available for first home buyers and pensioners.
- Calculator: Use the RevenueSA Rate of Stamp Duty calculator for accurate calculations.
| Property Value | Duty Rate |
| Not over $12,000 | $1.00 for every $100 or part of $100 |
| $12,000 to $30,000 | $120 with an additional $2.00 for every $100 or part of $100 over $12,000 |
| $30,000 to $50,000 | $480 with an additional $3.00 for every $100 or part of $100 over $30,000 |
| $50,000 to $100,000 | $1,080 with an additional $3.50 for every $100 or part of $100 over $50,000 |
| $100,000 to $200,000 | $2,830 with an additional $4.00 for every $100 or part of $100 over $100,000 |
| $200,000 to $250,000 | $6,830 with an additional $4.25 for every $100 or part of $100 over $200,000 |
| $250,000 to $300,000 | $8,955 with an additional $4.75 for every $100 or part of $100 over $250,000 |
| $300,000 to $500,000 | $11,330 with an additional $5.00 for every $100 or part of $100 over $300,000 |
| Over $500,000 | $21,330 with an additional $5.50 for every $100 or part of $100 over $500,000 |
Source: RevenueSA Rate of Stamp Duty
Tasmania
- Sliding scale: Rates increase with property value.
- Concessions: Available for first home buyers and pensioners.
- Exemptions: For specific transactions like transfers between spouses.
- Calculator: Use the State Revenue Office of Tasmania's calculator for accurate calculations.
| Property Value | Duty rate |
| Not over $3,000 | $50 |
| $3,000 to $25,000 | $50 with an additional $1.75 for every $100, or part, by which the dutiable value exceeds $3,000 |
| $25,000 to $75,000 | $435 with an additional $2.25 for every $100, or part, by which the dutiable value exceeds $25,000 |
| $75,000 to $200,000 | $1,560 with an additional $3.50 for every $100, or part, by which the dutiable value exceeds $75,000 |
| $200,000 to $375,000 | $5,935 with an additional $4.00 for every $100, or part, by which the dutiable value exceeds $200,000 |
| $375,000 to $725,000 | $12,935 with an additional $4.25 for every $100, or part, by which the dutiable value exceeds $375,000 |
| Over $725,000 | $27,810 with an additional $4.50 for every $100, or part, by which the dutiable value exceeds $725,000 |
Source: State Revenue Office of Tasmania Rates of Duty
Australian Capital Territory (ACT)
- Conveyance duty: The term for stamp duty in ACT.
- Lower rates: For owner-occupiers on properties valued up to $260,000 (as of July 2023).
- Exemptions: For commercial properties valued under $1,800,000 (as of July 2023) and For properties over $1,800,000, a flat rate of 5% applies.
- Calculator: Use the ACT Revenue Office's calculator for accurate calculations.
Eligible Owner-Occupier Transactions (from July 1, 2023):
| Property Value | Duty Rate |
| Not over $260,000 | $0.49 per $100 or part of thereof up to $260,000 |
| $260,001 to $300,000 | $1,274 with an additional $2.20 per $100 or part thereof by which the value exceeds $260,000 |
| $300,001 to $500,000 | $2,154 with an additional $3.40 per $100, or part thereof by which the value exceeds $300,000 |
| $500,001 to $750,000 | $8,954 with an additional $4.32 per $100, or part thereof by which the value exceeds $500,000 |
| $750,001 to $1,000,000 | $19,754 with an additional $5.90 per $100, or part thereof by which the value exceeds $750,000 |
| $1,000,001 to $1,455,000 | $34,504 with an additional $6.40 per $100, or part thereof by which the value exceeds $1,000,000 |
| Over $1,455,000 | A flat rate of $4.54 per $100 applied to the total transaction value |
ACT Non-Commercial Rates of Duty for Non-Eligible Owner Occupier Transaction (Transactions on or after 1 July 2023)
| Property Value | Duty Rate |
| Not over $200,000 | $1.20 per $100 or part thereof up to $200,000 |
| $200,001 to $300,000 | $2,400 with an additional $2.20 per $100 or part thereof by which the value exceeds $200,000 |
| $300,001 to $500,000 | $4,600 with an additional $3.40 per $100 or part thereof by which the value exceeds $300,000 |
| $500,001 to $750,000 | $11,400 with an additional $4.32 per $100 or part thereof by which the value exceeds $500,000 |
| $750,001 to $1,000,000 | $22,200 with an additional $5.90 per $100, or part thereof by which the value exceeds $750,000 |
| $1,000,001 to $1,455,000 | $36,950 with an additional $6.40 per $100, or part thereof by which the value exceeds $1,000,000 |
| Over $1,455,000 | A flat rate of $4.54 per $100 applied to the total transaction value |
Source: ACT Revenue Office Conveyance duty
Northern Territory (NT)
Percentage-based rates: Calculated as a percentage of property value.
Rebate: Available for pensioners, senior citizens, and carers.
Calculator: Use the NT Stamp Duty Calculator for accurate calculations.
| Property Value | Duty Rate |
| Not over $525,000 | (0.06571441 x V) + 15V (where V is 1/1,000 of the dutiable value) |
| $525,001 to $3,000,000 | 4.95% |
| $3,000,000 to $5,000,000 | 5.75% |
| Over $5,000,000 | 5.95% |
Additional Considerations
- State-specific exemptions: Some states offer additional exemptions or concessions for certain groups, such as veterans or people with disabilities.
- Property type: The type of property you're buying can also affect stamp duty costs. For example, vacant land might have different rates than established homes.
- Transaction structure: The way you structure your transaction can impact stamp duty. For instance, if you're buying a property with a partner, you might be eligible for certain exemptions or concessions.
- Consulting with a professional: If you're unsure about your stamp duty obligations, it's always a good idea to consult with a financial advisor or property expert. They can provide tailored advice based on your specific circumstances.
Minimizing Stamp Duty
While stamp duty is a necessary expense, there are ways to potentially minimize its impact:
- Timing your purchase: Some states offer concessions or exemptions during specific periods.
- Considering property value: Buying a property below certain thresholds can reduce stamp duty.
- Negotiating with the seller: In some cases, you might be able to negotiate a lower purchase price to reduce the stamp duty.
- Exploring exemptions: If you qualify as a first home buyer, pensioner, or meet other criteria, you might be eligible for exemptions or concessions.
Stamp duty is a tax imposed by state governments on the purchase of property. It's a significant upfront cost that can vary significantly across different states and territories. When considering property investment, understanding stamp duty rates is crucial.
Stamp Duty Rates by State and Property Value
The following table provides a comparison of stamp duty rates across Australian states for different property value ranges. Final figure is the calculation at the top value of that range except last one where it is calculated at the initial amount:
| State | $100,000-$250,000 | $250,001-$500,000 | $500,001-$750,000 | $750,001-$1,000,000 | $1,000,001-$1,500,000 | $1,500,001-$2,000,000 | $2,000,001+ |
| NSW | 3.5% | 3.5% | 4.5% | 4.5% | 4.5% | 5.5% | 5.5% |
| VIC | 2.4% | 6% | 6% | 6% | 6.5% | 6.5% | 6.5% |
| QLD | 3.5% | 3.5% | 4.5% | 4.5% | 5.75% | 5.75% | 5.75% |
| WA | 3.8% | 3.8% | 4.75% | 4.75% | 5.15% | 5.15% | 5.15% |
| SA | 3.5% | 4% | 4.75% | 5% | 5.5% | 5.5% | 5.5% |
| TAS | 2.25% | 3.5% | 4% | 4.25% | 4.25% | 4.5% | 4.5% |
| ACT | 2.2% | 3.4% | 4.32% | 5.9% | 6.4% | 7.5% | 8% |
| NT | 1.51% | 4.95% | 5.75% | 5.95% | 5.95% | 5.95% | 5.95% |
Note: These are approximate values based on the provided rates. Actual stamp duty amounts may vary slightly depending on the exact property value within each range. For precise calculations, please consult the relevant state revenue office.
This table provides a clearer picture of the stamp duty rates across different states and property value ranges, making it easier to compare and assess the impact of stamp duty on your investment decisions.