If you’re looking to buy a property in NSW, stamp duty is likely to be one of your biggest expenses aside from the home deposit. Here’s what you need to know about paying stamp duty in NSW, first home buyer exemptions and more.
What is stamp duty?
Stamp duty is a type of tax payable on certain purchases, such as transfers of property and motor vehicle registrations. In the case of buying property, you’re required to pay stamp duty in NSW any time you purchase a property over the value of $650,000.
Like other taxes, the amount you pay in stamp duty is invested into the economy by the state or territory government that collects it.
How much is stamp duty in NSW?
The cost of stamp duty varies from state to state. Ultimately though, stamp duty is calculated based on the by the dutiable value of your property at the time of purchase.
Here are the current stamp duty rates and thresholds for NSW*:
|Value of the property subject to the transaction||Rate of duty|
|$0 - $14,000||$1.25 for every $100 or part of the value|
|$14,001 - $30,000||$175 plus $1.50 for every $100 that the value exceeds $14,000|
|$30,001 - $80,000||$415 plus $1.75 for every $10 that the value exceeds $30,000|
|$80,001 - $300,000||$1,290 plus $3.50 for every $100 that the value exceeds $80,000|
|$300,001 - $1m||$8,990 plus $4.50 for every $100 that the value exceeds $300,000|
|Over $1m||$40,490 plus $5.50 for every $100 that the value exceeds $1,000,000|
|Premium Property Duty: over $3m||$150,490 plus $7.00 for every $100 that the value exceeds $3,000,000.|
|(Source: The NSW State Office of Revenue)|
|*From 1 July 2019, the price brackets used to calculate stamp duty in NSW will change.|
When do I have to pay stamp duty?
In NSW, stamp duty must be paid within three months of settlement. If a property purchase is made ‘off the plan,’ stamp duty is payable within three months of the date of the completion of the agreement, or within three months of the assignment of the purchaser’s interest in the agreement.
Are there exemptions for stamp duty in NSW?
For first home buyers, the NSW Government has abolished stamp duty on new and existing homes worth up to $650,000. That means you won’t be required to pay any stamp duty if you’re a first home buyer buying a property in NSW up to the value of $650,000. Stamp duty discounts are also given on homes between $650,000 and $800,000. For more information, see the NSW Government’s guide to stamp duty for first home buyers.
Additionally, you may be eligible for a concession or exemption on stamp duty in NSW if the property is changing hands following a death or divorce.