Stamp duty for first home buyers in NSW
By Ali Hasani, Founder and Principal Mortgage Broker at Buyvest, MFAA accredited. Last updated July 2026. Duty figures are 2026/27 financial year rates, verified against Revenue NSW.
This guide covers how transfer duty is calculated, who qualifies under the First Home Buyers Assistance Scheme, what you actually save at each price point, and how to combine the concession with other first home buyer benefits. Our property deposit calculator shows how the saving changes what you can afford.
The short version: Eligible first home buyers pay $0 transfer duty on a new or existing home up to $800,000. Above $800,000 and under $1,000,000 a concessional rate applies on a sliding scale. At $1,000,000 and above there is no relief. Vacant land is exempt up to $350,000, with a concession under $450,000. You must move in within 12 months of settlement and live there for 12 continuous months.
What is stamp duty in NSW?
Stamp duty, officially transfer duty, is a NSW state tax paid by the buyer when property changes hands. It is calculated on the dutiable value, which is the higher of the purchase price or the property's market value.
Duty is charged on a sliding scale, so the rate rises with the value. The rate year is set by your contract date, not your settlement date, which matters because Revenue NSW indexes the thresholds to Sydney CPI every 1 July.
For a buyer with no concession, the cost is significant. On a $500,000 property the duty is around $16,700. On $750,000 it is roughly $27,900. At $800,000 it reaches about $30,200. You can check an exact figure for any price with the Revenue NSW transfer duty calculator, then use our property deposit calculator to see what that leaves for your deposit and our mortgage repayment calculator to model the loan itself.
What is the First Home Buyers Assistance Scheme?
The First Home Buyers Assistance Scheme (FHBAS) is the NSW concession that removes or reduces transfer duty for eligible first home buyers. A full exemption applies up to $800,000, and a concessional rate applies above $800,000 and under $1,000,000.
For vacant land you intend to build on, the full exemption applies up to $350,000 and a concession applies above that and under $450,000.
The concession applies to new and existing homes alike, and it does not matter whether you buy by private treaty, at auction or off the plan. Note that Revenue NSW treats a substantially renovated home, or a home built to replace demolished premises, as a new home.
Who is eligible for the stamp duty concession?
You and your spouse or partner must never have owned residential property in Australia, or previously received an FHBAS benefit. At least one buyer must be an Australian citizen or permanent resident, the property must be within the thresholds, and you must live in it.
First home buyer status
Neither you nor your spouse or partner can ever have owned or co-owned residential property in Australia. The test is Australia only, so property owned overseas does not disqualify you. Neither of you can have previously received an exemption or concession under this scheme, even on a different property.
For this scheme, a spouse means someone you are legally married to or living with in a de facto relationship. If you are legally married but separated, Revenue NSW does not treat that person as your spouse provided you are not living together and have no intention of doing so.
Citizenship and age
At least one of the first home buyers must be an Australian citizen or permanent resident. Not every buyer needs to be. You must also be an individual rather than a company or trust, and over 18, though Revenue NSW can waive both of those requirements on application.
Living in the property
You, or one of the other eligible buyers, must move into the home within 12 months after settlement and live there as your principal place of residence for at least 12 continuous months. Investment purchases do not qualify. Members of the permanent Australian Defence Force are exempt from the residence requirement if everyone buying is on the NSW electoral roll.
Property value
For new and existing homes, the value must be $800,000 or less for the full exemption, or under $1,000,000 for the concessional rate. For vacant land, the figures are $350,000 and $450,000. The transfer must also be for the whole property.
Buying with someone who is not eligible: this does not automatically rule you out. Revenue NSW allows a shared equity arrangement where you and any other eligible buyers acquire at least half of the property. The ineligible buyers pay duty on the share they acquire. The exception is that shared equity does not apply if the ineligible buyer is your spouse.
How much stamp duty will you save?
At $800,000 an eligible first home buyer saves about $30,200, because the duty drops to $0. Below that threshold the saving equals the full duty that would otherwise apply.
Full exemption, properties up to $800,000
| Purchase price | Duty without the concession | Eligible first home buyer pays | Your saving |
|---|---|---|---|
| $500,000 | $16,687 | $0 | $16,687 |
| $600,000 | $21,187 | $0 | $21,187 |
| $700,000 | $25,687 | $0 | $25,687 |
| $800,000 | $30,187 | $0 | $30,187 |
Calculated on 2026/27 transfer duty rates. Revenue NSW indexes the thresholds to Sydney CPI each 1 July, so these figures change annually. Your rate year is set by your contract date.
Concessional rate, properties above $800,000 and under $1,000,000
Between $800,001 and $999,999 you pay a reduced amount rather than nothing, and the discount shrinks as the price climbs towards $1,000,000. At $1,000,000 and above there is no relief at all.
Revenue NSW does not publish a simple formula for the concessional amount, and third party figures for this band often disagree. Rather than give you a number that might be wrong by thousands, use the official First Home Buyers Assistance Scheme calculator, which returns the exact concession for your price. Then run the result through our property deposit calculator to see what it means for your deposit.
The $800,000 line is worth watching. One dollar over the threshold moves you from a full exemption into the concessional band. Where a property is priced close to $800,000, that gap is worth discussing with your conveyancer before you sign.
Vacant land
If you are buying vacant land to build your first home, the full exemption applies up to $350,000 and a concession applies above that and under $450,000. The completed home must be your principal place of residence. Building also means a construction loan, which draws down in stages.
How do you combine stamp duty savings with other benefits?
The stamp duty concession stacks with the federal deposit schemes and, on a qualifying new home, the $10,000 First Home Owner Grant. The grant has its own price cap of $600,000, which is lower than the stamp duty threshold and catches people out.
Example: a $750,000 established home
The price sits under $800,000, so transfer duty is $0 and the saving is around $27,900. The Australian Government 5% Deposit Scheme means a deposit of $37,500 rather than $150,000, and no Lenders Mortgage Insurance, which on a purchase this size can be worth tens of thousands. There is no First Home Owner Grant here, because the home is established and the price is above the $600,000 new home cap.
Example: a $580,000 new apartment
Transfer duty is $0, saving roughly $20,300. The property is new and under $600,000, so the $10,000 First Home Owner Grant applies. A 5% deposit is $29,000 with no LMI. This is the combination where all three benefits land together.
You can also accelerate your deposit through the First Home Super Saver Scheme, or look at Help to Buy, where the federal government takes an equity share and you contribute as little as 2%. Income limits apply to Help to Buy and you cannot use it alongside the 5% Deposit Scheme. Our deposit options guide compares every pathway, and the benefits and risks guide weighs up the low deposit route.
Work out what you actually save
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How do you apply for the stamp duty concession?
You apply after exchanging contracts, through your solicitor or conveyancer, using the Revenue NSW FHBAS application form plus a purchaser declaration and proof of identity. The concession is not applied automatically.
Step 1: Exchange contracts
You cannot apply before exchange. Once contracts are exchanged, the application can be lodged. Your contract date also fixes which year's duty rates apply to you.
Step 2: Complete the forms
For contracts exchanged on or after 1 July 2023, that is the First Home Buyers Assistance Scheme application form ODA 066B, together with a Purchaser or Transferee Declaration. Your solicitor or conveyancer normally prepares both.
Step 3: Provide proof of identity
You lodge your identity documents with the forms through your solicitor or conveyancer, along with the contract of sale.
Step 4: Assessment and settlement
Revenue NSW assesses the application and, if approved, you pay reduced or $0 duty. Timeframes vary, so start early in your home buying journey rather than in the week before settlement. Keep your documentation, because the residence obligations are legally binding.
Common scenarios and special situations
Buying with a partner
Where you buy with a spouse or de facto partner, neither of you can have owned residential property in Australia or received an FHBAS benefit before. Where you buy with someone who is not your spouse and who is not eligible, the shared equity arrangement described above may still allow you to claim on your share.
Building on purchased land
The concession applies to the land purchase, with a full exemption to $350,000 and a concession under $450,000. The completed home must become your principal place of residence. A new build under $750,000 for land and construction combined may also attract the First Home Owner Grant.
Off-the-plan purchases
Duty is assessed on the dutiable value at the contract date. Separately from the FHBAS concession, owner occupiers buying off the plan can defer payment of duty for up to 12 months. The two work independently, so you can reduce the duty under the concession and defer whatever remains. Your residence clock starts at completion, not exchange.
Inherited property
Inheriting residential property in Australia counts as having owned it, and selling it afterwards does not restore first home buyer status. If this applies to you, confirm your position directly with Revenue NSW before you commit to a purchase.
What happens if you do not meet the requirements?
If your circumstances change and you cannot meet the residence requirement, you must tell Revenue NSW immediately to arrange the correct duty payment. Failing to do so can attract interest and penalties.
Revenue NSW does consider special cases, and may allow a shorter residence period or waive the requirement. That is a written request assessed individually, not an automatic entitlement, and it needs details of your circumstances, your contract and settlement dates, how long you have lived in the property, whether you intend to return, and a copy of your duties notice of assessment.
There are also substantial penalties for false or misleading information on an application. Revenue NSW checks applications against data from other government agencies.
Frequently asked questions
How much stamp duty do first home buyers pay in NSW?
Nothing on a new or existing home valued at $800,000 or less, if you are eligible. Between $800,001 and $999,999 a reduced amount applies on a sliding scale. At $1,000,000 and above, full duty applies with no relief. For an exact figure, use the Revenue NSW FHBAS calculator.
Can I buy with someone who has owned property before?
Possibly. If the ineligible buyer is not your spouse or de facto partner, Revenue NSW allows a shared equity arrangement where you and any other eligible buyers acquire at least half of the property. The ineligible buyers pay duty on their share. If the ineligible buyer is your spouse or partner, the concession is not available.
Do all buyers need to be Australian citizens or permanent residents?
No. At least one of the first home buyers must be an Australian citizen or permanent resident. The other eligibility conditions, including never having owned residential property in Australia, still apply to you and your spouse or partner.
Can I claim the concession on an investment property?
No. You must move into the home within 12 months of settlement and live there as your principal place of residence for at least 12 continuous months. Members of the permanent Australian Defence Force can be exempt from the residence requirement if all buyers are on the NSW electoral roll.
What if I owned property overseas but never in Australia?
The test is Australian property only, so overseas ownership does not disqualify you from the First Home Buyers Assistance Scheme. Individual circumstances vary, so confirm your position with Revenue NSW before you exchange.
Can I claim both the stamp duty concession and the First Home Owner Grant?
Yes, if the property qualifies for both. The stamp duty exemption covers homes up to $800,000, new or existing. The $10,000 First Home Owner Grant applies to new homes only, valued under $600,000, or $750,000 for land plus a building contract combined. You can also use a federal deposit scheme alongside both.
Do I need to stay in the property forever to keep the concession?
No. Move in within 12 months of settlement and live there for at least 12 continuous months. Once you have met that, you can sell, rent it out or move without repaying the concession.
Is the concession automatic or do I need to apply?
You must apply. Your solicitor or conveyancer normally lodges the Revenue NSW application form and purchaser declaration after contracts are exchanged, but responsibility for it being submitted sits with you.
What if I cannot move in within 12 months due to renovations?
The deadline is firm, but Revenue NSW considers exceptional circumstances and can allow a shorter residence period or waive the requirement. That is a written request assessed case by case, so raise it before you purchase rather than assuming an extension.
Calculators and next steps
Work out the numbers before you commit. Our property deposit calculator shows the maximum price your deposit supports once duty is accounted for. The mortgage repayment calculator models what the loan costs month to month. The home equity calculator estimates your position at different LVRs. For the duty figure itself, the Revenue NSW FHBAS calculator is the official source.
Then read our budgeting guide for the rest of the upfront costs, and the pre-approval to settlement guide for the full process.
Maximise your first home buyer benefits
We help first home buyers navigate stamp duty concessions, grants and home loan options across 35+ lenders at $0 cost to you.
Email: hello@buyvest.com.au
Related resources
First home buyer tips | NSW First Home Owner Grant | 5% Deposit Scheme guide | Help to Buy | LMI explained | Loan to Value Ratio | Purchase methods and valuations
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This article is general information only and does not take your personal circumstances into account. Transfer duty thresholds are indexed each 1 July and scheme rules change, so confirm current settings with Revenue NSW and your conveyancer before relying on them. For tax questions, speak with your accountant or financial adviser. Ali Hasani is an Authorised Credit Representative (CRN 567392) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).
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