NSW Stamp Duty Calculator – A Guide for First Home Buyers

Buying your first home is an exciting milestone, but navigating the additional costs—like stamp duty—can be overwhelming. Understanding how stamp duty is calculated and knowing if you qualify for exemptions or concessions can make a big difference to your budget and home loan. In this guide, we’ll break down stamp duty for first home buyers in NSW, provide calculation examples, and explain how to use our stamp duty calculator to estimate your costs.

How Stamp Duty Is Calculated in NSW

Stamp duty in NSW is calculated based on a sliding scale. The stamp duty rate increases as the purchase price of the property rises. Here’s how it works:

1. Determine the purchase price of the property.
2. Refer to the NSW transfer duty rates table to find the applicable rate.
3. Apply the rate to calculate the amount of stamp duty to understand your stamp duty cost.

NSW Stamp Duty Rates for 2024

 

Example: Calculating Stamp Duty for a First Home Buyer in NSW

Example 1: Buying a house worth $650,000

• Base rate: $9,805 (for $315,000)
• Additional cost: $4.50 per $100 for the remaining $335,000
• Calculation: $9,805 + ($335,000 ÷ 100 × $4.50) = $24,880

Example 2: Buying vacant land worth $350,000

• Base rate: $9,805 (for $315,000)
• Additional cost: $4.50 per $100 for the remaining $35,000
• Calculation: $9,805 + ($35,000 ÷ 100 × $4.50) = $11,380

These examples demonstrate how the amount of stamp duty varies based on the property type and purchase price. Use our comprehensive stamp duty calculator NSW here to easily calculate your stamp duty.

Stamp Duty Concessions and Exemptions in NSW

First home buyers in NSW can benefit from the First Home Buyer Assistance Scheme (FHBAS). This scheme offers:

1. Full Stamp Duty Exemption:
   • For homes valued up to $800,000.
   • For vacant land valued up to $350,000.
2. Concessions:
   • For homes priced between $800,000 and $1,000,000.
   • For vacant land priced between $350,000 and $450,000.

For more information on understanding if you are eligible for a stamp duty concession or waiver read our First Home Buyers Assistance Scheme NSW guide here.

Additional information can be found on the New South Wales government website here.

Example: Buying a property for $900,000

• For non-first home buyers, you must pay stamp duty in New South Wales of $35,029
• For first home buyers that qualify for the First Home Buyers Assistance Scheme NSW you will be a discounted rate of stamp duty of $20,126 providing you with a saving of $14,903
• The concession reduces the payable amount of stamp duty, saving tens of thousands and enabling you to contribute an additional $14,903 towards the value of the property or reducing the home loan amount you need

When do I have to pay stamp duty?

• In NSW, you must pay your stamp duty within three months of signing the contract of sale or transfer, or by the settlement date, whichever comes first
• Off-the-plan purchases: If you’re buying a residential property off-the-plan and intend to live in it, you can defer stamp duty payment for up to 12 months
• If stamp duty is not paid on time, interest may be applied to the unpaid amount.  In most cases, your conveyancer will handle the paperwork and lodge the payment with Revenue NSW on your behalf

Stamp Duty Concessions for First Home Buyers in QLD and Victoria

Stamp Duty Concessions for Queensland (QLD)

First home buyers in Queensland can also access stamp duty waivers and concessions:

• First Home Concession: For homes up to $800,000
• For purchase prices up to $700,000 – no stamp duty is payable
• For purchase prices between $700,000 to $800,000 a concession or discount will apply
• For purchase prices over $800,000 there is no first home concession applicable

Pro tip: The Queensland government also provides a Home Concession scheme for non-first home buyers which provides a concession or discount as long as you meeting the eligibility below:

• Buying the property as individuals
• Move into the property and living there on a daily basis within 1 year of settlement (beware: this time cannot be extended)

• Vacant Land Concession: Reduced duty for land valued up to $400,000.
• Full concession applies, and no stamp duty is payable for purchase price up to $500,000

More information can be found on the Queensland Revenue Office website here.

Stamp Duty Concessions for Victoria

First home buyers in Victoria are eligible for:

• Full Exemption: For homes priced under $600,000.
• Concession: For homes valued between $600,001 and $750,000.

Example: Full Exemption for a home worth $600,000

• For non-first home buyers, you would need to pay stamp duty of $31,070
• For first home buyers, the stamp duty cost is completely waived

Example: Concessional or discounted stamp duty for a home worth $700,000

• For non-first home buyers, you would need to pay stamp duty of $37,070
• For first home buyers, you would only need to pay stamp duty of $24,713
• The concession or discount is equal to $12,357 which is an additional amount you can use your deposit to contribute towards the value of the property

When Are First Home Buyers Exempt from Stamp Duty?

You may qualify for a stamp duty exemption if:

• The property is within the eligible price range.
• It’s your first property purchase.
• You intend to live in the property.

Eligibility criteria:

• Buyers must be 18 or over at the date of the contract
• At least one buyer must be an Australian citizen or permanent resident
• Buyers must be individuals, not companies or trusts
• Buyers and their spouses/partners must never have owned residential property in Australia
• The property must become the principal place of residence within 12 months and for a continuous period of at least 12 months

For vacant land, exemptions apply if the land is within the price cap and you plan to build your first home.

Using our free online Stamp Duty Calculator to Estimate Costs

Our NSW Stamp Duty Calculator is an easy-to-use tool to estimate costs. Simply input:

• The purchase price.
• Property type (e.g., house, vacant land).
• Location (e.g., NSW, QLD, or VIC).
• Whether you’re a first home buyer or not
• Whether you’re a foreign purchaser or not

The calculator will provide an estimate of the amount of stamp duty payable, including any concessions or exemptions you may qualify for. Access our free online NSW Stamp Duty Calculator here

Additional Tips for First Home Buyers in NSW

1. Budget for Extra Costs: Consider other upfront costs like a mortgage application fee and legal expenses.
2. Explore Grants: Check your eligibility for the First Home Owner Grant (FHOG) to further reduce costs.
3. Seek Professional Advice: Work with conveyancers and brokers to ensure a smooth property purchase process.

FAQ: Common Questions About Stamp Duty for First Home Buyers

What happens if I don’t qualify for a concession or exemption?

You’ll need to pay the full amount of stamp duty, calculated based on the stamp duty rate for your purchase price.

Can I defer paying stamp duty?

In NSW, stamp duty is typically due within three months of settlement. Some states offer payment plans, but NSW doesn’t currently allow deferrals.

Does stamp duty apply if I’m buying an investment property?

Yes, stamp duty applies to investment properties, but concessions for first home buyers are only available if you intend to live in the property.

This guide provides an overview of stamp duty for first home buyers in NSW, helping you navigate the costs and concessions. Use our stamp duty calculator to get a clear picture of your potential costs and make informed decisions about your first home purchase!

How is stamp duty calculated if I pay below market value for the property?

Stamp duty is calculated based on the dutiable value of the property.  This is the higher of the property’s sale price or it’s current market value.

What is the foreign owner surcharge and who needs to pay this?

The foreign owner surcharge on stamp duty is an additional property tax that applies to foreign buyers of residential property in most Australian states and territories.  The additional surcharge can range from 7% to 8% on top of the standard stamp duty rates.

There are exemptions for citizens of certain foreign nations so make sure you check the specific state or territories policy on this surcharge.