How is Transfer Duty / Stamp Duty Calculated?
Transfer duty is calculated on the higher of the property purchase price and market value using the applicable transfer duty rate of the state or territory that the property is located in.
Additionally, there are other factors that can significantly affect the amount of transfer duty payable:
- Property Location: each state and territory has its separate transfer duty rates.
- Purchase price or Property value: different transfer duty rates apply to different price or value ranges. Generally, the rate increases as the price or value of the property increases. In NSW, a premium duty rate applies to residential property valued above an indexed threshold ($3,870,000 for 2026–27, adjusted each 1 July). The specific rates and thresholds vary depending on the contract date.
- Buyer's circumstances: first-home buyers and owner occupiers may be eligible for transfer duty concessions or exemptions while foreign buyers may need to pay additional surcharge duty.
- Property type: the transfer duty exemptions and concessions available differ depending on the property type (new and existing home or vacant land) and the buyer's intended use for the property (principal home or investment property).
- Exemptions and concessions (e.g., home concession transfer duty, first home buyer duty exemption or concession)
How a progressive scale actually works
Duty isn't a single flat percentage of the price. The value is split into brackets, and each bracket is taxed at its own rate — so for most brackets you pay a fixed base amount for the value up to that bracket, plus a set rate on the part of the value above the bracket's threshold. Because the lower brackets are taxed at lower rates, the effective rate you actually pay (total duty divided by the price) is lower than the top rate your value reaches. It's also why duty rises faster than price: as the value climbs into higher brackets, more of it is taxed at the higher rates.
When duty is charged on market value, not the price
Duty is assessed on the higher of the purchase price and the property's market value. In an ordinary sale between unrelated parties at arm's length, the agreed price is accepted as the market value. But where a property is transferred between related parties — family members, for example — or for a nominal or below-market amount (including a gift), the revenue office generally assesses duty on the market value instead, and usually requires an independent valuation. A discounted price between relatives doesn't reduce the duty payable. Debts secured against the property, such as a mortgage, don't reduce the dutiable value either.
Transfer Duty vs. Stamp Duty
Originally stamp duty was imposed on documents evidencing property transactions and physical stamps were affixed on the physical documents. Duty could be legally avoided if there was no document in existence.
Today the duty is imposed on transactions rather than documents and in most jurisdictions, stamp duty is officially referred to as "transfer duty".
The terms "transfer duty" and "stamp duty" are often used interchangeably and both refer to the same tax.
Transfer Duty Rates by State
Below is an example of how transfer duty amounts vary across different states for the same property value, based on 2026–27 financial year rates, with no surcharge, exemption or concession applicable:
| State | Property Value | Transfer Duty Payable |
|---|---|---|
| NSW | $600,000 | $21,187 |
| VIC | $600,000 | $31,070 |
| QLD | $600,000 | $20,025 |
How to Calculate Transfer Duty Using a Stamp Duty Calculator
- Determine the market value or purchase price.
- Apply the applicable state transfer duty rates.
- Factor in stamp duty exemptions and stamp duty concessions if eligible.
- Factor in surcharge duty if the buyer is a foreigner.
All state or territory revenue offices have transfer duty calculator tool available on their websites. You can utilise these calculators for easy and accurate calculation of transfer duty.
- NSW transfer duty calculator
- NSW transfer duty calculator for first home buyers
- QLD transfer duty calculator
- VIC transfer duty calculator
Common Exemptions and Concessions
Each state and territory has its separate transfer duty exemptions and concessions. Below are the common exemptions and concessions:
- First-home buyer exemptions and concessions
- Principal place of residence/home buyer concessions
- Exemption for pensioners
- Concessions for off-the-plan purchases
- Exemptions for transfers between married couples and de facto partners
- Exemptions for transfers related to marriage, de facto and domestic relationship break-ups
- Exemptions and concessions for deceased estate transfers