Stamp Duty Exemptions NSW: Eligibility, Savings & 2026 Guide

Stamp duty exemptions NSW: who qualifies and how to save

On a $750,000 home in Western Sydney, stamp duty costs roughly $28,000. What most buyers don’t realise: if you’re a first-home buyer, you might pay zero.

NSW offers three main stamp duty exemptions and concessions that can save you tens of thousands of dollars, if you qualify. But the rules are specific, the thresholds matter, and getting it wrong is expensive.

Over 25 years, we’ve helped first-home buyers save an average of $18,500 in stamp duty — mostly by catching them before they breached the $800,000 threshold. This guide covers every current exemption and concession available in NSW as of 2026, with worked examples showing what you’ll actually pay.

What is stamp duty in NSW?

Stamp duty (officially called “transfer duty”) is a state government tax you pay when you buy property or land in NSW. Revenue NSW collects it, and your solicitor or conveyancer typically handles the payment at settlement. To estimate what you’ll owe before you sign, try our stamp duty calculator NSW.

The amount depends on your purchase price. NSW uses a tiered calculation — not a flat percentage — so the rate increases as the property value rises.

How stamp duty is calculated

Here’s the current NSW stamp duty schedule for residential property:

Rates effective 1 July 2025. Source: Revenue NSW.

To put that in real terms: on a $650,000 property, standard stamp duty is $23,662. On a $1,000,000 property, it’s $39,412. These are significant amounts, which is exactly why the exemptions below matter.

Stamp duty exemptions for first home buyers

The First Home Buyers Assistance Scheme (FHBAS) is the biggest stamp duty concession in NSW. It applies to both new and existing properties, and the savings are substantial. For more on this, see our how stamp duty compares across all Australian states guide.

Full exemption: homes under $800,000

If you’re buying your first home and the property is valued at $800,000 or less, you pay zero stamp duty. On a $750,000 purchase, that’s a saving of roughly $28,000.

To qualify, you need to meet all of these criteria:

• You’re an Australian citizen or permanent resident
• You’re at least 18 years old
• You (or your spouse/partner) have never owned residential property in Australia
• You move into the property within 12 months of settlement
• You live there continuously for at least 12 months

Both the price cap and the residency requirement must be met. We see buyers trip up on the residency rule more often than you’d expect. More on that below.

Concession rate: homes $800,001 to $1,000,000

Bought something between $800,001 and $1,000,000? You still get a discount, but not a full exemption. The concession works on a sliding scale. The closer your purchase price is to $800,000, the bigger the discount.

The concession reduces smoothly as your price increases from $800,000 toward $1,000,000. At $850,000 you save $22,809 — still significant. By $950,000, the saving is $7,603. And close to $1,000,000, the concession becomes negligible: at $995,000 it’s only $760, at $999,000 just $152. Above $1,000,000, there’s no concession at all. The most meaningful savings are in the $800,000 to $900,000 range. If you can get below $800,000 entirely, duty is zero.

Vacant land exemption: under $350,000

Planning to buy land and build? First home buyers get a full stamp duty exemption on vacant land valued up to $350,000. Between $350,001 and $450,000, a sliding-scale concession applies.

In parts of Western Sydney, land-and-build packages under $350,000 are still available. If you’re open to building, this route can save you both stamp duty and give you a new home tailored to your needs.

How much stamp duty will you pay? (worked examples)

Here are three scenarios we see regularly with Western Sydney buyers.

First-home buyer, $650,000 Parramatta apartment Standard stamp duty: $23,662. Under the $800,000 threshold, you pay $0. We see this play out most often in unit markets within 20km of the CBD.

First-home buyer, $870,000 Blacktown house Standard stamp duty: $33,562. The sliding scale applies — you’ll pay $13,794 and save $19,768. Still a meaningful concession at this price point.

Upgrader, $1,100,000 Baulkham Hills house Standard stamp duty: $43,912. No exemptions apply. For upgraders at this level, the conversation shifts to loan structure and timing rather than duty concessions.

The gap between the first-home buyer at $650,000 and the upgrader at $1.1 million is over $43,000 in stamp duty alone. And the first-home buyer scenario gets better: they paid zero. Structuring your purchase correctly before you sign a contract can save more than months of extra saving.

Quick caveat: stamp duty rules change, and your eligibility depends on your exact circumstances. Always verify with your conveyancer or broker before signing a contract.

Stamp duty for pensioners and seniors in NSW

This comes up a lot, so it’s worth addressing directly: NSW does not have a dedicated stamp duty concession or exemption for pensioners or seniors.

Unlike some other Australian states, holding a Pensioner Concession Card, Seniors Card, or Health Care Card does not reduce your transfer duty in NSW. If you’re a senior buying a property, you’ll pay the same stamp duty rates as any other buyer, unless you happen to qualify for another exemption (such as a relationship breakdown transfer or deceased estate).

The only way a pensioner can reduce stamp duty in NSW is if they have never owned property before and qualify as a first home buyer under the FHBAS. That’s uncommon for seniors, but it does occasionally apply.

If you’re downsizing and the stamp duty bill is a concern, speak to a mortgage broker about structuring the purchase. There may be ways to reduce your overall costs even without a duty concession.

Family transfers and inheritance exemptions

Not every property transaction attracts stamp duty in NSW. Several types of transfers are exempt or attract only nominal ($50) duty:

Relationship breakdowns: Property transfers between spouses or de facto partners as part of a separation or divorce are exempt from stamp duty. This applies to transfers made under a court order, binding financial agreement, or written separation agreement. The exemption also covers transfers to a trustee under a family trust arrangement arising from the breakdown.

Deceased estates: Transfers of property from a deceased estate to a beneficiary named in the will are generally exempt from stamp duty. This includes transfers to the executor or administrator during the estate administration process.

Transfers between spouses (outside of breakdown): Adding or removing a spouse from a property title during the relationship may attract concessional rates, but it’s not a full exemption. The rules here are specific to the circumstances — talk to your conveyancer about the duty implications before making changes.

How to apply for the FHBAS (step by step)

Applying for the First Home Buyers Assistance Scheme isn’t complicated, but you need to get the timing right.

1. Confirm your eligibility before signing a contract. Check Revenue NSW’s eligibility criteria or speak to your mortgage broker. Don’t assume you qualify — verify it.

2. Tell your solicitor or conveyancer that you’re claiming the exemption or concession. They handle the application as part of the settlement process.

3. Complete the First Home Buyers Assistance Scheme application form (the Purchaser/Transferee Declaration). Your solicitor will provide this, or you can download it from the Revenue NSW website.

4. Lodge the form with Revenue NSW before or at settlement. Your solicitor typically does this through the electronic duties return system.

5. Move in within 12 months and stay for at least 12 continuous months. Revenue NSW can and does check this.

There is no separate grant application — the FHBAS is a duty exemption, not a cash payment. Don’t confuse it with the First Home Owner Grant (FHOG), which is a separate $10,000 payment for new homes only.

Common mistakes that cost first home buyers their exemption

We’ve seen buyers lose their stamp duty exemption for avoidable reasons. Here are the ones that come up most often:

Buying with someone who has previously owned property. In most cases, if any purchaser on the contract has previously owned property in Australia, no one qualifies for the exemption. There is an exception: if you are purchasing at least 50% of the property and the co-purchaser is not your spouse or de facto partner, you may still be eligible under a shared equity arrangement (s78B, Duties Act 1997). This is a nuanced area — Revenue NSW’s own guidance and the legislation set out specific conditions. Get advice from your conveyancer before assuming you’re excluded.

Not meeting the residency requirement. You must move in within 12 months and live there for 12 continuous months. Buyers who purchase off-the-plan sometimes run into timing issues if construction delays push their move-in date beyond 12 months from settlement. If this happens, contact Revenue NSW before the deadline — extensions are sometimes granted.

Renovating before moving in. If your renovation takes longer than 12 months and you haven’t moved in, you risk breaching the residency requirement. The clock starts at settlement, not when renovations finish.

Buying through a trust or company. The FHBAS only applies to individuals. If you purchase through a family trust, SMSF, or company structure, you don’t qualify for the exemption regardless of the property value. Trust and company ownership also have different annual cost consequences — see how land tax affects investors holding NSW property through these structures.

Misunderstanding how the sliding scale works. Many buyers assume they need to get below $800,000 for any meaningful saving — but the scheme applies all the way to $999,999. At $850,000, you’re still saving $22,809. The important thing to understand: the concession tapers smoothly and becomes very small near $1,000,000. There’s no sharp cliff — just a steady reduction. The most valuable part of the range is $800,000 to $900,000, where savings are substantial. Negotiating a property from $1,010,000 to $999,000 won’t unlock significant savings ($152 in concession). But negotiating from $900,000 to $850,000 saves an extra $7,603 in duty, on top of the $50,000 lower purchase price.

How a mortgage broker helps you maximise stamp duty savings

A mortgage broker does more than find you a rate. We help you structure the entire purchase to keep costs down.

On stamp duty specifically:

Pre-purchase planning — Before you start looking, we calculate your total exposure including stamp duty, so you know your real budget. This matters: a $700,000 purchase and an $850,000 purchase look very different after duty is factored in.

Threshold awareness — The concession is most valuable in the $800,000 to $900,000 range. We run the numbers before auction day so you know exactly what different price points cost in duty, and where it’s worth negotiating.

Scheme stacking — The FHBAS exemption stacks with the First Home Owner Grant ($10,000 for new homes) and the Australian Government 5% Deposit Scheme (buy with 5% deposit, no LMI). We make sure you’re claiming everything you’re entitled to.

Off-the-plan timing — Off-the-plan buyers don’t get a reduction in duty, but they can defer payment for up to 15 months from signing the contract (rather than the standard 3 months). This can improve cash flow during construction. To qualify, you must be an Australian citizen or permanent resident and intend to live in the property as your principal place of residence.

With access to 52+ lenders, we also make sure your loan is structured correctly from the start.

Under $800,000: claim the full exemption — you pay zero duty. $800,000 to $900,000? The sliding scale gives you $15,206 to $22,809 in savings. $900,000 to $999,999? The concession still applies but tapers significantly — $7,603 at $950,000, under $200 near $999,000. $1,000,000 or above? No concession applies. The rules are clear, but how they apply to your exact situation is worth a conversation.

Ready to see how much you could save? Talk to a mortgage broker at Mortgage World Australia — we’ll model it for your exact situation.

FAQ: Stamp duty in NSW

Who is eligible for a stamp duty exemption in NSW?

First home buyers purchasing a property valued up to $800,000 (or vacant land up to $350,000) qualify for a full exemption under the FHBAS. You must be an Australian citizen or permanent resident, at least 18, never owned property in Australia, and move in within 12 months for a minimum of 12 continuous months.

How much is stamp duty on an $800,000 house in NSW?

For a non-first-home buyer, stamp duty on an $800,000 property is approximately $30,412 (based on rates from 1 July 2025). Eligible first home buyers pay $0 under the FHBAS, saving the full $30,412.

Are seniors exempt from stamp duty in NSW?

No. NSW does not have a dedicated stamp duty concession or exemption for pensioners or seniors. Unlike some other states, holding a Pensioner Concession Card, Seniors Card, or Health Care Card does not reduce your transfer duty. You’ll pay the same rates as any other buyer unless another exemption applies (such as a relationship breakdown transfer).

Can you transfer property without paying stamp duty in NSW?

In some cases, yes. Transfers between separating spouses, deceased estate distributions, and certain family farm transfers may be exempt or attract only nominal duty. Each type has specific eligibility criteria — your conveyancer can confirm whether an exemption applies.

What happens if I breach the FHBAS residency requirement?

Revenue NSW can reassess your transaction and require you to pay the full stamp duty amount, plus interest. If you’re at risk of breaching (e.g., construction delays), contact Revenue NSW before the 12-month deadline to discuss an extension.

This guide is general information only and does not constitute financial, legal, or tax advice. Stamp duty rates and exemptions are subject to change — always verify current thresholds with Revenue NSW. For advice tailored to your situation, speak to a qualified mortgage broker or financial adviser.

Patrick O’Brien, Director and Home Loan Specialist since 2001 — Mortgage World Australia

Patrick O'Brien

Patrick is a Director and a Home Loan Specialist. He has been helping Australians with home loans since 2001. Prior to working as a mortgage broker Patrick was employed by Macquarie Bank for 3 years and also worked as an accountant for a publicly listed company. Patrick’s qualifications include:

Bachelor of Business, UTS Sydney. Majored in accounting and sub-majored in Finance and Marketing.
Diploma of Finance and Mortgage Broking Management FNS50310
Certificate IV in Financial Services (Finance/Mortgage Broking) FNS40804