Stamp Duty Calculation, Process, Exemptions, and Factors Affecting it

The national or state governments charge you a tax called stamp duty once you purchase a property. It is a transfer duty arising from purchase and paid in addition to the home price as part of the settlement process. What does this mean? It is currently an upfront mandatory tax charge that can have an important bearing on the total cost of your property.

The amount of stamp duty expected for payment is not the same for all states. The calculation of the stamp duty is based on the property’s value and other variables like the kind of property you have (i.e., newly built, vacant land, or an existing home), if you intend to live there or not, and if you are authorized to have concessions as a first home buyer.

Use the Stamp Duty Calculator we have for you below to check the stamp duty you may need to pay by filling up all the details.

Using our Stamp Duty Calculator

Before we start, let us inform you that our stamp duty calculator is user-friendly and responsive. By this, it means that you should get the same experience if you are using it via mobile or desktop.

To begin – please ENTER the following:

  • Value of Property or Land
  • State or Territory where the property you’re buying is located.

Choose Other Options based on the state or territory:

  • Property Type – Primary Residence could provide you a few concessions.
  • First Home Buyer – Several states provide concessions and First Home Buyer Grants.
  • Items being Purchased – Some concessions are available only for a new home.
  • Other Options – Will define if you’re eligible for more concessions.

Then, click CALCULATE – that’s it!!!

Disclaimer: The Stamp Duty Calculator shows you an indication of how much you would have to pay – your Solicitor or Conveyancer will provide the final costing on your new purchase. It is recommended that you seek appropriate legal advice.

What’s important to note is that the stamp duty payable amount is based on a few changing factors whereby the total cost is affected by the territory or state where you’re buying in, if the property will be your primary place of residence or an investment, and the property’s value or purchase price.

There are discounts available for first-home buyers and low-income earners, subject to various eligibility requirements, such as:

  • Applicant should be a person, not a company or trust;
  • Applicant must be over 18 years of age;
  • Applicant must be a permanent resident or Australian citizen;
  • Must be a primary place of residence for six months continuously;
  • No co-purchaser may have owned a residential property within Australia in the past.

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What is Stamp Duty?

The tax imposed by state and territory governments on your transactions indicated below is what is referred to as a transfer duty or stamp duty:

  • insurance policies;
  • mortgages;
  • motor vehicle transfers, and registrations;
  • the sale and transfer of the real estate, businesses and certain shares.

Transfer duty or general duty is the amount that’s payable based on the territory or state where you are buying and it varies state by state.

How much is Stamp Duty in Australia?

The stamp duty differs per state in Australia. The rule of thumb is that it is about 3 to 4% of the property’s value or purchase price. Nevertheless, to get an accurate stamp duty for your situation, we recommend that you use our calculator.

Who is Exempted from Stamp Duty?

It is the first-home buyers who could be entitled to stamp duty exemptions or concessions under specific circumstances.

We suggest you view your state’s government website below if you need to check the present conditions applicable for any stamp duty exemptions and discounts:

State / TerritoryLink
Australian Capital
New South

Is Land Transfer Duty the Same as Stamp Duty?

YES – land transfer duty and stamp duty mean the same thing. However, land transfer duty drills down the objective of the tax more evidently as it is a one-off payment for the land transfer on which the property is located, from a person to the next or simply, from the seller to buyer. This transaction may also be termed as ‘transfer duty.’

Factors Affecting Stamp Duty

Several factors determine what the cost of stamp duty will be and it is important to know more about it. If one of these applies to you, then it could save you some money.

Besides the location of the property and its value for duty, you should consider the following:

  • It will not be obligatory for the new owner to pay stamp duty if a property is given to a family member after a divorce or death.
  • Some states do not require first-time home buyers in paying stamp duty, up to a certain amount. This will fall under the ‘first-home owner schemes and grants.’
  • There are also available concession rates for carers, pensioners, and farmers. But these are all subject to the varying laws in each state and territory.
  • Your residency situation is an important consideration– if you are a foreign person, there is an additional surcharge applicable to foreign buyers.
  • The objective for the property also impacts the stamp duty, if it is being bought as a home or for investment.

Do we Pay Stamp Duty on Transfer of Property Between Family Members?

No transfer duty is payable if the transfer is between couples and existing partners and the house is your primary residence. You could be exempted from paying the duty if there’s a break-up in the domestic relationship, thus, requiring a title transfer. Whenever there are other family members involved in the transaction, you are required to get a valuation with the help of a valuer so you can evaluate the property’s market value. The stamp duty to be paid on the property is based on the valuation of the market value and not on the listed price of the contract or gift.