If you’re starting your property journey in New South Wales, you’ve probably heard about stamp duty. These days, it’s officially known as transfer duty. And let’s be honest: it’s one of the most confusing (and expensive) parts of buying a home.
Maybe you’ve asked yourself:
- “How much is stamp duty in NSW?”
- “Can I avoid it as a first home buyer?”
- “Do I pay it upfront or with my loan?”
These are all valid questions, and at Unconditional Finance, we hear them every week from clients just like you. Whether you’re buying your first home, upsizing, or investing, understanding transfer duty is crucial. It can affect your deposit, borrowing power, and how smoothly your settlement goes.
As mortgage brokers, we help break it all down in a way that makes sense, without overwhelming you with financial jargon. Let’s explore what transfer duty means for you in 2025 and how we can help make your next steps easier and clearer.
Many buyers mistakenly believe stamp duty in NSW can be added to their home loan, but banks typically won’t finance this cost. Planning ahead with a broker helps you structure your deposit strategy so you’re not caught short just before settlement.
What Is Transfer Duty (Stamp Duty) in NSW?
Transfer duty in NSW is a state government tax that applies when you purchase property. While it’s still commonly referred to as stamp duty, the official term used by Revenue NSW is transfer duty.
It’s based on the dutiable value of the property, usually the purchase price, and is paid within three months of settlement unless you’re buying off the plan or fall under specific exemptions. This isn’t a cost your bank usually covers. It’s separate from your deposit and loan, meaning it needs to be factored into your upfront budget.
Transfer duty can also apply to property transfers that don’t involve a traditional sale, such as gifting property to a family member or settling an estate. These scenarios still trigger duty obligations unless a specific exemption applies, making professional guidance essential in non-standard purchases.
How Much Is Transfer Duty in 2025? (Latest NSW Rates from 1 July 2024)
Transfer duty in New South Wales is calculated on a sliding scale. The more the property costs, the more duty you may need to pay.
Here are the updated NSW stamp duty rates for 2025, effective from 1 July 2024:
| Dutiable Value | Transfer Duty Payable |
| $0 to $17,000 | $1.25 for every $100 (minimum $20) |
| $17,000 to $36,000 | $212 plus $1.50 for every $100 over $17,000 |
| $36,000 to $97,000 | $497 plus $1.75 for every $100 over $36,000 |
| $97,000 to $364,000 | $1,564 plus $3.50 for every $100 over $97,000 |
| $364,000 to $1,212,000 | $10,909 plus $4.50 for every $100 over $364,000 |
| Over $1,212,000 | $49,069 plus $5.50 for every $100 over $1,212,000 |
For example, if you’re purchasing a home for $850,000, your estimated transfer duty is approximately $32,839, assuming no exemptions apply.
Because the rate increases progressively across brackets, even a $5,000 jump in your purchase price can push you into a higher duty range. Understanding how these NSW stamp duty brackets work can help you make more informed decisions during property negotiations.
Are You a First Home Buyer? You Might Be Eligible for Duty Relief
The First Home Buyer Assistance Scheme (FHBAS) allows eligible buyers to pay no transfer duty or access a concessional rate, depending on the property value and use.
In 2025:
- No duty applies for homes priced up to $800,000
- Discounted duty may apply for homes priced between $800,000 and $1 million
To qualify, the property must generally be used as your principal place of residence, and you must meet criteria around citizenship, previous ownership, and residency.
Some buyers assume they’re eligible because they’ve never owned property in Australia, only to find out a past purchase overseas can still count against them. Eligibility checks are nuanced, and working with a broker can help you clarify your status before applying.
Considering Annual Property Tax Instead of Transfer Duty?
In 2023, the NSW Government introduced an opt-in Annual Property Tax for eligible first home buyers. This allowed buyers to avoid an upfront transfer duty in exchange for an annual property-based tax.
As of 2025, this option has been phased out for new buyers, but it still applies if you previously opted in.
If you’re purchasing a home from someone who opted into the annual property tax, that obligation passes on to you. This means you could be agreeing to ongoing tax costs without realising. That’s why it’s essential to check a property’s transfer duty history during due diligence.
When Is Stamp Duty Paid, and How Do You Plan for It?
Transfer duty is typically payable within three months of signing the contract, or by settlement (whichever comes first).
Your conveyancer or solicitor usually handles the lodgement and payment process, transferring funds directly to Revenue NSW.
Since this cost isn’t included in your home loan, it must be covered from your savings or from sale proceeds if you’re purchasing a new home after selling.
Some lenders might let you use a gifted deposit to help pay transfer duty, but strict documentation is required. A mortgage broker in Sydney can ensure your loan application includes the right supporting evidence so your finance isn’t delayed at the final hurdle.
What About Investors and Vacant Land Buyers?
Transfer duty also applies to investment properties, vacant land, and commercial premises. These purchases typically attract the same duty rates unless a separate exemption applies.
Foreign buyers may face additional surcharges on top of standard duty. Vacant land purchases are usually assessed at land value only. But timelines matter. If construction doesn’t start within a certain timeframe, you may lose access to exemptions or fall outside eligibility for certain concessions.
How a Mortgage Broker Helps You Stay One Step Ahead
As Sydney mortgage brokers, our role is to make sure you understand your full financial position, not just your borrowing limit.
We support you by:
- Calculating your estimated transfer duty upfront
- Checking eligibility for concessions and exemptions
- Structuring your loan to ensure you have enough cash for duty at settlement
- Coordinating with your solicitor to avoid delays or penalties
- Providing strategy and insights that align with your financial goals
We also look at your contract timelines to ensure there are no conflicts between settlement and duty payment deadlines. This often gets overlooked by lenders focused solely on the loan. But it’s one area where a broker can help protect you from late fees or stress on settlement day.
Ready to take the next step? Book your free consultation with Unconditional Finance and feel confident about your property purchase.
Frequently Asked Questions (FAQs)
In most cases, stamp duty (also known as transfer duty) in NSW can’t be added to your home loan. It’s typically due within three months of signing the contract, and your lender won’t cover it as part of your loan amount. That means you’ll usually need to pay it separately from your savings, or sometimes from the proceeds of a sale if you’re upgrading.
If this is something you’re unsure about, a mortgage broker can help you plan your upfront costs, including transfer duty, so you’re not scrambling to come up with extra cash just before settlement.
As of 1 July 2024, the estimated transfer duty on a $750,000 home in NSW is around $28,632, assuming no exemptions apply. That said, if you’re a first home buyer, you may qualify for a full or partial exemption under the First Home Buyer Assistance Scheme (FHBAS).
Because transfer duty is calculated using a sliding scale and can vary based on property type and eligibility, it’s worth speaking with a broker who can run the numbers for your specific situation.
You may be able to avoid stamp duty if you meet the eligibility criteria under the NSW First Home Buyer Assistance Scheme. As of 2025, first home buyers purchasing a property up to $800,000 may pay no duty at all. Concessional rates may apply for purchases up to $1 million.
However, eligibility depends on factors like whether you’ve owned property before (even overseas), your residency status, and how you plan to use the property. These details can get a bit tricky, so it’s a good idea to check with a broker before assuming you qualify.
Yes, the transfer duty on vacant land is usually calculated based on the land value only, which can be lower than if you were buying an established property. That said, there are important timing and eligibility conditions to be aware of, especially if you’re applying for any grants or exemptions.
If your construction timeline gets delayed or the land use changes, you could risk losing certain benefits. It’s worth getting tailored advice to make sure your plans still meet the necessary requirements.
If transfer duty isn’t paid within the required timeframe, generally within three months of signing the contract, you could face interest charges or late penalties from Revenue NSW. In some cases, it may also delay your settlement or final registration of title, which can cause issues with your property purchase.
This is why many buyers work with a mortgage broker and a conveyancer to map out timelines and make sure nothing gets overlooked. Having a clear plan for how and when transfer duty will be paid can save you from unnecessary stress later on.
