Stamp Duty NSW & VIC 2026-27: First Home Buyer Exemptions Explained
Stamp duty is the tax everyone forgets to budget for and nobody forgets after paying. On an $800,000 Sydney home, the standard bill is $30,187 — due at settlement, on top of your deposit, in cash. For first home buyers, though, both NSW and Victoria will wipe that bill entirely if your purchase sits under the right threshold.
The catch — and it’s a big one — is that these thresholds are cliffs. In Victoria, bidding $1,000 over $750,000 doesn’t cost you $1,000. It can cost you $15,000 or more in lost concessions. This guide maps exactly where the cliffs are in NSW and Victoria for 2026-27, with worked examples at every price point that matters.
Quick answer: In NSW for 2026-27, eligible first home buyers pay $0 stamp duty on homes up to $800,000, a concessional rate from $800,001 to $999,999, and full duty from $1,000,000. In Victoria, it’s $0 up to $600,000, concessional to $750,000, and full duty above that. Both states require you to move in within 12 months and live there for 12 continuous months.
NSW: the $800,000 line that matters most
NSW has the most generous first home buyer thresholds on the Australian mainland, run through the First Home Buyers Assistance Scheme (FHBAS) by Revenue NSW. Since July 2023, the same thresholds apply whether you’re buying new or established — it used to favour new builds, but that distinction is gone.
| What you’re buying | $0 duty up to | Concessional rate | Full duty from |
|---|---|---|---|
| New or existing home | $800,000 | $800,001 – $999,999 | $1,000,000 |
| Vacant land (to build on) | $350,000 | $350,001 – $449,999 | $450,000 |
What you’d actually pay at key prices (2026-27 rates):
| Purchase price | Standard duty | Eligible first home buyer |
|---|---|---|
| $600,000 | $21,187 | $0 |
| $800,000 | $30,187 | $0 |
| $900,000 | $34,687 | $19,594 |
| $1,000,000 | $39,187 | $39,187 (no relief) |
Read that $900,000 row carefully: the concession saves you $15,093. But nudge the price to $1,000,000 and the saving vanishes completely. Every extra $1,000 you pay above $800,000 adds roughly $196 in duty. When you’re negotiating, knowing exactly where you sit on that slope is worth real money.
NSW eligibility: the fine print that disqualifies people
- Never owned residential property in Australia — not just NSW. A unit you owned in Brisbane fifteen years ago disqualifies you. Your partner’s ownership history counts too.
- Move in within 12 months of settlement and live there for 12 continuous months. Break this and Revenue NSW can claw back the duty plus penalties.
- Australian citizen or permanent resident (standard requirement).
- The property must be your principal place of residence — not an investment.
The residence requirement is where the money gets lost at the edges. A job transfer six months in, a relationship change, a delayed renovation — any of them can breach the 12-month continuous residence test. If your circumstances might change, talk to your conveyancer before you claim.
NSW standard rates 2026-27 (for reference)
If you don’t qualify for the scheme, these are the rates Revenue NSW applies (effective 1 July 2026):
| Property value | Duty payable |
|---|---|
| Up to $17,000 | $1.25 per $100 (minimum $20) |
| $17,001 – $37,000 | $212 + $1.50 per $100 over $17,000 |
| $37,001 – $99,000 | $512 + $1.75 per $100 over $37,000 |
| $99,001 – $372,000 | $1,597 + $3.50 per $100 over $99,000 |
| $372,001 – $1,240,000 | $11,152 + $4.50 per $100 over $372,000 |
| Over $1,240,000 | $50,212 + $5.50 per $100 over $1,240,000 |
| Over $3,721,000 (premium property) | $186,667 + $7.00 per $100 over $3,721,000 |
You don’t need to memorise this — our stamp duty calculator applies the right bracket automatically. But it’s worth seeing how steeply the marginal rate climbs: that last bracket charges 7 cents on every dollar over $3.72 million.
Victoria: the $600,000 cliff is brutal
Victoria’s scheme is less generous and, frankly, more dangerous. The full exemption stops at $600,000 — and in a Melbourne market where the affordable-house medians cluster right around that number, the cliff edge sits exactly where the bidding gets competitive.
| Purchase price | Standard duty | Eligible first home buyer |
|---|---|---|
| $500,000 | $21,970 | $0 |
| $600,000 | $31,070 | $0 |
| $700,000 | $37,070 | $24,713 |
| $800,000 | $43,070 | $43,070 (no relief) |
The scenario that should keep you up at night: you’re at auction, bidding hits $745,000, and the auctioneer calls for $755,000. Your instinct screams “yes” — it’s only $10,000 more on the house. But you’ve just crossed $750,000, the concession vanishes entirely, and your stamp duty jumps from a discounted figure to the full ~$40,000+. That $10,000 bid really cost you $25,000.
Victoria’s eligibility mirrors NSW: first home, never owned residential property in Australia (partner included), move in within 12 months, live there 12 continuous months. It applies to houses, townhouses, apartments, units and vacant land. Claims go through the State Revenue Office’s digital duties form — your conveyancer normally handles it at settlement.
NSW vs Victoria: side by side
| NSW | Victoria | |
|---|---|---|
| Full exemption to | $800,000 | $600,000 |
| Concession to | $999,999 | $750,000 |
| New vs established | Same thresholds | Same thresholds |
| Vacant land relief | Yes ($350k/$450k) | Included in scheme |
| Foreign buyer surcharge | 9% | 8% |
| Residence requirement | 12 months in, 12 months continuous | 12 months in, 12 months continuous |
NSW is clearly the better deal for first home buyers — $200,000 more headroom on the full exemption. But Victoria’s medians are lower, so the practical difference narrows in the outer suburbs where first buyers actually shop.
Five ways buyers pay more duty than they should
1. Crossing a threshold mid-negotiation. The $800,000/$1,000,000 (NSW) and $600,000/$750,000 (VIC) lines are the most expensive numbers in your purchase. Know them before you make an offer, not after.
2. Not checking a partner’s history. Your partner owned a flat before you met? You’re both disqualified. This is the single most common reason claims get rejected.
3. Buying land + build as one contract (NSW). If you’re building, separate land and construction contracts where possible — you generally pay duty on the land value, not the finished house. On a $750,000 house-and-land package where the land is $400,000, that’s the difference between duty on $750,000 and duty on $400,000.
4. Forgetting the duty is due at settlement. It’s not part of your loan (unless you’ve specifically financed it). Budget 4–6% of the purchase price for total upfront costs: duty, legals ($1,500–$3,000), building and pest ($500–$1,000), and LMI if your deposit is under 20%.
5. Assuming off-the-plan is the same. Off-the-plan can reduce duty because it’s often calculated on the land value plus construction completed at the contract date — but the rules are specific. Get your conveyancer to model it before you sign.
Frequently asked questions
Does the NSW exemption apply to established homes or only new builds?
Both. Since July 2023, new and established homes share the same thresholds ($800,000 exemption, concession to $1 million). The First Home Owner Grant is separate and only applies to new homes.
What happens if I can’t move in within 12 months?
You risk losing the exemption and having to repay the duty plus penalties. Talk to Revenue NSW (or the SRO in Victoria) and your conveyancer immediately if your plans change — don’t just hope nobody notices.
Can I claim the exemption if my partner owned property before?
No. If any purchaser (or their spouse/partner) has previously owned residential property in Australia, the whole purchase is generally ineligible.
Is stamp duty calculated on the contract date or settlement date?
The dutiable value is generally set at the contract (exchange) date. Duty itself is usually paid at settlement, around 30–90 days later.
Do first home buyer schemes apply to vacant land?
In NSW, yes — $0 duty to $350,000 and concessional to $450,000 for land you intend to build your home on. In Victoria, vacant land is included in the scheme thresholds.
What about the NSW annual property tax option?
NSW previously offered eligible first home buyers a choice between upfront stamp duty and an annual property tax. Check the current status with Revenue NSW or your conveyancer, as scheme settings have changed over time — model both options if both are available to you.
The bottom line
For 2026-27: NSW first home buyers pay nothing to $800,000 and get relief to $1 million; Victorians pay nothing to $600,000 with relief to $750,000. The thresholds are cliffs — know exactly where your offer sits before you make it, check every purchaser’s ownership history, and protect your 12-month residence requirement like the $30,000 depends on it. Because it does.
Get your exact figure in seconds with our free stamp duty calculator — and if you’re selling an investment property down the track, our CGT calculator will show you the other side of the ledger.
