Stamp Duty for First Home Buyers in NSW: What You'll Pay

Reviewed by Brenda Gately, Licensed Conveyancer (NSW Licence No. 05006556, AIC member) — 36 years' experience.

First home buyers in NSW pay no transfer duty on a home worth $800,000 or less, and a reduced amount on homes between $800,001 and $1,000,000. Above $1,000,000 the full rate applies. For vacant land, duty is nil up to $350,000 and reduced between $350,001 and $450,000. The scheme covers both new and existing homes, and you must move in within 12 months and live there for at least 12 continuous months.

Thresholds last reviewed 13 September 2026 against Revenue NSW. These figures change with NSW budgets — check the current position before you rely on them.

Transfer duty — most people still call it stamp duty — is usually the largest single cost of buying after the deposit. For first home buyers it is also the cost most likely to be reduced to nothing, which makes it worth understanding properly before you set a budget.

The thresholds

Existing or new homes

• $800,000 or less — no transfer duty at all.
• $800,001 to $1,000,000 — a concessional rate, sliding upward as the price rises.
• Above $1,000,000 — full transfer duty, with no first home buyer concession.

Vacant land you intend to build on

• $350,000 or less — no transfer duty.
• $350,001 to $450,000 — a concessional rate.
• Above $450,000 — full duty.

A point worth being clear about, because older articles get it wrong: the First Home Buyers Assistance Scheme applies to both new and existing homes. You do not have to buy a newly built property to qualify.

The cliff edge at $1 million

The concession does not taper gently past $1,000,000 — it stops. A first home buyer purchasing at $1,000,000 receives a concession; at $1,000,001 they pay full duty on the whole purchase price.

If you are negotiating near that line, the duty consequence can exceed the amount you are haggling over. The same is true at $800,000 and, for land, at $350,000 and $450,000. Know which side of a threshold your offer sits on before you make it.

Who is eligible

• At least one purchaser must be an Australian citizen or permanent resident.
• You must be 18 or older (the Chief Commissioner can waive this).
• You and your spouse must never have owned residential property in Australia, and must not have previously received a benefit under the scheme.
• Individuals only — companies, partnerships and trustees are not eligible, with limited guardian and trustee exceptions.

The residence requirement

For contracts entered into on or after 1 July 2023, you must move in within 12 months of settlement and live there for at least 12 continuous months. Permanent members of the Australian Defence Force are exempt from the residence requirement; reservists are not.

This catches people out. If you intend to rent the property out immediately, you do not qualify — and Revenue NSW can reassess the duty later if the requirement is not met.

The First Home Owner Grant is a separate thing

The grant and the duty concession are two different schemes, and it is common to confuse them.

The First Home Owner (New Homes) Grant is $10,000. Unlike the duty concession, it applies only to new homes: the purchase price must not exceed $600,000, or $750,000 in total for a house-and-land or building contract.

Applications are lodged either through an approved agent — usually your bank or lender, which is the common route because it lets the grant be applied at settlement — or directly with Revenue NSW, typically where the purchase or construction is already complete. You have 12 months from settlement or completion to apply.

Your conveyancer does not lodge the grant application. We will tell you whether you appear eligible and make sure the timing works with your settlement, but the application itself goes through your lender or to Revenue NSW.

Budgeting for the rest

Duty is the big number, but it is not the only one. Alongside it, budget for lender and mortgage registration fees, building and pest or strata reports, insurance, moving costs, and your conveyancing fee plus conveyancing disbursements — the third-party search and certificate costs.

Our guide to total conveyancing costs sets out what a NSW transfer typically costs end to end.

Getting help

If you are buying your first home, the duty position is worth checking before you start making offers — not after. Brenda will tell you where your purchase sits against the thresholds and what it means for your budget. If you are looking for a Sydney conveyancer who handles first home purchases personally, start with a quote.

Request a Free Quote or call (02) 8815 8148.

Frequently asked questions

Do first home buyers pay stamp duty in NSW?

Not on a home worth $800,000 or less. Between $800,001 and $1,000,000 a reduced amount applies, and above $1,000,000 full duty is payable. Thresholds last reviewed 13 September 2026.

Does the first home buyer concession apply to existing homes?

Yes. The First Home Buyers Assistance Scheme covers both new and existing homes. The $10,000 First Home Owner Grant is the scheme that applies only to new homes.

What happens if I buy just over $1 million?

You pay full transfer duty on the entire purchase price — the concession does not taper past $1,000,000. It is worth knowing which side of the threshold an offer sits on before you make it.

Do I have to live in the property?

Yes. For contracts on or after 1 July 2023 you must move in within 12 months of settlement and live there for at least 12 continuous months. Permanent ADF members are exempt.

Can I get both the duty concession and the grant?

They are assessed separately against different criteria. The duty concession covers new and existing homes up to the thresholds; the $10,000 grant applies only to new homes up to $600,000 (or $750,000 for house-and-land). Depending on the property, you may qualify for one, both, or neither.