You’ve saved for your first home, and have a deposit ready. Great, how about for stamp duty? (Here’s a stamp duty calculator for reference.)
Purchasing a property should be moment to celebrate – it shouldn’t be the first time you hear of stamp duty! Don’t let taxes sting you on your special day, understand the fees before you buy.
What is stamp duty?
Stamp duty is a tax, in this case on the purchase of a property. It covers the cost of changing the property title and ownership details. State and territory governments use these funds to pay for sectors such as health, transport, police and emergency services.
How much do I have to pay?
Calculating how much you’ll pay in stamp duty depends on a number of factors, including:
The type of home you buy. For instance, a vacant property will have a smaller stamp duty than purchasing a home.
The cost of the property. Simply that the more you spend on a property, the more tax you will pay.
Your state. NSW stamp duty is based on either the price you paid for the property or the market value of the property – whichever is greater. Rates vary between states and territories, which calculate stamp duty differently.
Foreign residents. From this tax year, foreign buyers of residential land in NSW may also see an additional 4 per cent stamp duty and land charges.
Be aware that additional fees often accompany stamp duty, such as the transfer fee and mortgage registration fee.
|Value of NSW property||NSW duty payable|
|Up to $14,000||$1.25 for every $100|
|$14,001 – $30,000||$175 + $1.50 for every $100 over $14,000|
|$30,000 – $80,000||$415 + $1.75 for every $100 over $30,000|
|$80,001 – $300,000||$1290 + $3.50 for every $100 over $80,000|
|$300,001 – $1 million||$8,990 + $4.50 for every $100 over $300,000|
|$1 million +||$40,490 + $5.50 for every $100 over $1 million|
|$3 million +||$150,490 + $7.00 for every $100 over $3 million|
Do I qualify for an exemption?
While stamp duty can easily run into the tens of thousands, there are some exemptions available.
First time homeowners. In NSW, first time homeowners are exempt from stamp duty tax if the home is valued under $650,000. There are also discounts for new homes valued between $650,000 – $800,000. Exemptions are available for vacant land valued up to $350,000, with discounts for land between $350,000 – $450,000.
Pensioners and health card holders. If you currently receive government benefits, you may be eligible for a concession or exemption. Check your local Office of State Revenue or ask us .
Transfers. There is no stamp duty if you transfer ownership to a spouse or make a change of tenure.
Still not sure what it all means? Ask us! We’re here to help.