Stamp Duty for First Home Buyers in NSW: What You Actually Pay in 2026

Stamp duty is usually the upfront cost first home buyers in NSW are not fully prepared for. It is also one of the areas where NSW offers genuine relief to eligible first home buyers, which means a lot of buyers pay far less than they initially assume, or nothing at all.

What Stamp Duty Actually Is

Stamp duty is a state government tax charged when property changes ownership. It is calculated on a sliding scale based on the purchase price of the property. Because it is due at settlement, it needs to be accounted for as cash you have available, separate from your deposit.

The First Home Buyers Assistance Scheme

Under the NSW First Home Buyers Assistance Scheme, eligible first home buyers can receive a full exemption or a concessional rate on stamp duty, depending on the value of the property.

• A full exemption applies to eligible properties valued up to $800,000.

• A concessional, reduced rate applies to eligible properties valued between $800,000 and $1,000,000.

• For vacant land intended for a first home, a full exemption applies up to $350,000, with a concession available up to $450,000. 

Who Actually Qualifies

To be eligible, you generally need to be at least 18 years old, an Australian citizen or permanent resident (at least one applicant if buying with a partner), and neither you nor your spouse can have previously owned residential property in Australia. You also need to move into the property and live there as your main residence, generally within 12 months of settlement, for a continuous period of at least 12 months.

A Worked Example

To make this concrete: a first home buyer purchasing an established property for $750,000 in the Eastern Suburbs would generally qualify for a full exemption under current thresholds, paying no stamp duty at all, instead of paying the standard amount of $28,513. A buyer purchasing at $900,000 would fall into the concessional band, paying a reduced amount of $20,057 rather than the full standard duty amount of $35,263. A buyer purchasing at $1,100,000 would receive no concession and pay full standard stamp duty of $44,263. To calculate your potential stamp duty visit Home Loan Calculator Sydney | Orca Home Loans - Property Fees. 

What Happens If Your Property Is Above the Threshold

If your purchase price sits above $1,000,000, or above $450,000 for vacant land, the exemptions and concessions no longer apply, and standard stamp duty rates are charged in full. Noting that much of Sydney's Eastern Suburbs sits above these thresholds, this is worth factoring into your budget early, rather than assuming the exemption automatically applies to any first home purchase.

Vacant Land and New Builds: A Different Set of Rules

If you're planning to buy land and build rather than purchase an established home, it's worth reading the thresholds above carefully, since the vacant land caps are considerably lower than the established property caps. This path also opens up the First Home Owner Grant, which does not apply to established homes. If a knockdown rebuild or a genuine new build is part of your plan, our guide to construction loans covers how financing works differently for this kind of purchase compared to buying something move-in ready.

How This Interacts With Other Support You Might Be Using

Stamp duty relief is rarely used in isolation. Many first home buyers combine it with the First Home Guarantee (5% deposit scheme) or a family guarantee from a parent, covered in our Bank of Mum and Dad guide. It's also worth understanding NSW's 12-month rule, which in some cases allows you to keep your stamp duty exemption even if you eventually want to rent the property out, provided you live in it first for a continuous 12-month period.

Common Misunderstandings About the Exemption

A few misunderstandings come up regularly. Some buyers assume the exemption applies automatically simply because they're a first home buyer, when in reality it needs to be claimed as part of the purchase process, generally through your conveyancer or solicitor at settlement. Others assume a property priced just above $800,000 loses the exemption entirely, when in fact the concessional rate still applies up to $1,000,000, just at a reduced rather than zero rate. And some assume the scheme is a one-off government payment, when it is in fact a reduction or removal of a cost you would otherwise pay, not money paid to you directly.

Other Costs That Sit Alongside Stamp Duty

Even where stamp duty is reduced or exempted, it is not the only upfront cost. Conveyancing and legal fees, building and pest inspections, and Lenders Mortgage Insurance if your deposit is under 20% all sit on top of the purchase price. A full breakdown of what to budget for is covered in our guide to the hidden costs of buying a home, which is worth reading alongside this one, along with the rest of the support covered in our full guide to available government support.

Working Out How Much Stamp Duty You Need To Pay 

Because eligibility and thresholds depend on your specific purchase price and personal circumstances, the most reliable way to know exactly what you will pay is to run your own numbers rather than relying on a general guide. If you are a first home buyer in Sydney working out your total upfront costs, this is exactly the kind of detail worth confirming before you make an offer on a property, not after. Our stamp duty calculator can give you a starting estimate, or you can speak with us directly about your specific purchase.

Frequently Asked Questions

Do I pay stamp duty if I am a first home buyer in NSW?

It depends on the property value. Eligible first home buyers pay no stamp duty on properties valued up to $800,000, and a reduced concessional rate between $800,000 and $1,000,000. Above $1,000,000, standard rates apply in full.

Does the exemption apply to an investment property?

No. The First Home Buyers Assistance Scheme requires the property to become your main residence, generally within 12 months of settlement, for a continuous period.

Can I buy with someone who has owned property before and still get the exemption?

Partially. Eligible buyers can purchase with an ineligible person, such as a parent, provided the eligible buyers acquire at least 50% of the property. The ineligible party pays duty on their share.

What is the difference between an exemption and a concession?

An exemption means no stamp duty is payable at all. A concession means a reduced, discounted rate is payable, rather than the full standard amount.

Are the rules different for vacant land?

Yes. Vacant land intended for a first home has considerably lower thresholds than established properties, so it is worth checking the current caps carefully if this applies to your situation.

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This article is general in nature and does not constitute personal financial, legal, or tax advice. Stamp duty thresholds, eligibility criteria, and exemptions are set by the NSW Government and are reviewed periodically, so figures should be confirmed against the NSW Revenue Office before making a decision. Subject to lender criteria and approval.