First Home Buyer Stamp Duty in NSW

Eligible NSW first home buyers may receive a full exemption or reduced rate of transfer duty under the First Home Buyers Assistance Scheme.

Under the current rules, a new or existing home valued at $800,000 or less may receive a full exemption. Homes above $800,000 but below $1 million may receive a concession.

This can materially change the amount a buyer needs at settlement. At the current 2026–27 standard duty rates, transfer duty on an $800,000 home is $30,187 before any first-home-buyer benefit.

Current NSW thresholds

New or existing home

• Full exemption may apply at $800,000 or less

• A concession may apply above $800,000 and below $1 million

Vacant land

• Full exemption may apply at $350,000 or less

• A concession may apply above $350,000 and below $450,000

How much is the exemption worth at $800,000?

Using the NSW 2026–27 standard transfer-duty scale:

$11,602 plus $4.50 for every $100 above $387,000

$11,602 + ($413,000 × 4.5%) = $30,187

An eligible first home buyer at the full-exemption threshold may therefore avoid $30,187 in transfer duty.

Your solicitor or conveyancer should confirm the final duty amount and eligibility. Rates are indexed and may change after 30 June 2027.

Going above $800,000

A common misunderstanding is that buying for $800,001 creates the full standard duty immediately.

The benefit phases out through a concessional rate for eligible purchases above $800,000 and below $1 million. Even so, the required funds can change quickly as the price rises, so compare the deposit and duty at several offer amounts before negotiating.

Main eligibility points

• The property is a new or existing home, or eligible vacant land, in NSW and within the relevant value threshold

• The transfer is for the whole property and the buyer is an individual rather than a company or trust, subject to limited waiver provisions

• The buyer is at least 18, subject to limited waiver provisions

• The buyer and their spouse or partner have not previously owned or co-owned residential property in Australia

• The buyer and their spouse or partner have not previously received a benefit under the Scheme

• At least one eligible buyer is an Australian citizen or permanent resident

• For a home, at least one eligible buyer moves in within 12 months after settlement and lives there as their principal place of residence for at least 12 continuous months

Can duty assistance and the 5% Deposit Scheme work together?

Yes, a buyer may be eligible for both because they are separate programs.

For example, an eligible buyer purchasing a $700,000 established home in Tamworth may potentially use the Australian Government 5% Deposit Scheme and receive the NSW full duty exemption. The buyer would still need to meet both sets of criteria and the participating lender’s credit assessment.

What about the $10,000 First Home Owner Grant?

The NSW First Home Owner Grant is separate again. It currently applies to eligible newly built or substantially renovated homes up to $600,000, or land plus an eligible building contract with a combined value up to $750,000.

It does not apply to an established home. Revenue NSW states that the grant may be paid in addition to other exemptions or concessions for eligible buyers.

NSW stamp duty FAQ

Is the threshold based on my loan amount?

No. Duty is based on the property’s dutiable value, generally the higher of the purchase price and market value.

Does my conveyancer apply?

Applications and supporting documents are generally lodged through the buyer’s solicitor or conveyancer after contracts are exchanged.

Can I buy with someone who is not eligible?

A limited shared-equity arrangement may be available where eligible buyers acquire at least half the property, but special rules apply and an ineligible spouse is treated differently. Obtain legal and Revenue NSW guidance for the exact ownership structure.

Does a duty exemption mean I only need the deposit?

No. Legal fees, inspections, settlement adjustments, registration costs and a post-settlement buffer may still be needed.

Compare the funds needed at more than one purchase price

Send me the property price, state and whether it is established, new or vacant land. I can help you map the deposit and home-loan position, while your conveyancer confirms the final duty treatment.

Call Lauren on 0458 053 943 or use the “Speak to us today” button to check your buying costs.