Eligible first home buyers in NSW pay no stamp duty on new or existing homes valued up to $800,000, and a concessional (reduced) rate on homes up to $1,000,000. For vacant land you intend to build a home on, the full exemption applies up to $350,000 and the concession up to $450,000.
You generally need to be a genuine first home buyer, at least one buyer must be an Australian citizen or permanent resident, and occupancy requirements apply, including moving in within 12 months. Because duty comes out of your own cash, check where your price sits against these thresholds before you make an offer.
Which duty rates apply to your contract date?
The first home buyer thresholds come from the First Home Buyers Assistance Scheme (Revenue NSW, checked October 2026), while the general duty brackets are indexed each financial year. For a contract in 2026–27, use that year’s published rates.
The NSW duty estimator gives a standard residential estimate and flags the first-home exemption range. Use Revenue NSW’s official rates and calculators to confirm partial concessions and your final liability.
What is stamp duty?
Stamp duty is officially called transfer duty in NSW.
It is a state tax paid when property changes ownership. For first home buyers, NSW offers help through the First Home Buyers Assistance Scheme, often shortened to FHBAS.
Revenue NSW explains how transfer duty works on its transfer duty page (checked October 2026). First home buyers may be eligible for a full exemption or a reduced rate under the scheme.
That does not mean every first home buyer pays no duty.
It depends on:
- Property value.
- Property type.
- Whether it is a whole property transfer.
- Whether the buyer meets first-home buyer rules.
- Citizenship or permanent residency status.
- Residence requirements.
- Whether the buyer or their spouse has owned residential property before.
NSW first home buyer stamp duty thresholds in 2026
As at October 2026, Revenue NSW lists a full exemption from transfer duty for eligible first home buyers on new or existing homes valued up to $800,000, and a concessional rate on homes up to $1,000,000. For vacant land on which you intend to build a home, the exemption applies up to $350,000 and the concession up to $450,000 (Revenue NSW).
| Property type | Value | First home buyer transfer duty outcome |
|---|---|---|
| New or existing home | Up to $800,000 | Full exemption if eligible |
| New or existing home | Over $800,000 and below $1,000,000 | Concessional rate if eligible |
| New or existing home | $1,000,000 or above | No FHBAS home concession; standard duty applies |
| Vacant land | Up to $350,000 | Full exemption if eligible |
| Vacant land | Over $350,000 and below $450,000 | Concessional rate if eligible |
| Vacant land | $450,000 or above | No FHBAS vacant-land concession; standard duty applies |
Who is eligible for the First Home Buyers Assistance Scheme?
Revenue NSW eligibility rules include several moving parts.
In plain English, the buyer generally needs to be a genuine first home buyer, purchasing an eligible NSW property within the relevant value threshold, and at least one buyer needs to be an Australian citizen or permanent resident.
Occupancy requirements apply, including moving in within 12 months. Read the exact residence rules on the Revenue NSW scheme page before you exchange.
That residence rule is important.
If you are buying an investment property, do not assume stamp duty assistance applies. The owner-occupier requirement can change the entire answer.
What is the difference between an exemption and a concession?
A full exemption means no transfer duty is payable under the scheme.
A concession means transfer duty is reduced, not removed.
This distinction matters because buyers often think the rules are binary:
“Under the threshold, no stamp duty. Over the threshold, full stamp duty.”
That is not quite right. For eligible homes above $800,000 and below $1,000,000, a concessional rate may apply.
Once the home reaches $1,000,000, the FHBAS home concession generally does not apply and standard duty is payable.
Why does the $800,000 threshold matter?
The $800,000 threshold is a major planning point.
For an eligible first home buyer, buying at or below $800,000 may remove transfer duty under the scheme. Buying above it can still receive a concession if the price is below $1,000,000, but the funds-to-complete number changes.
That can affect:
- Deposit needed.
- Loan-to-value ratio.
- Whether LMI applies.
- Cash buffer after settlement.
- Whether family support is needed.
- Whether the buyer can bid confidently.
How much stamp duty would you pay at $650K, $800K, $1M or $1.2M?
The exact duty should be checked with the Revenue NSW calculator and your conveyancer before exchange. The concession shrinks as the price rises towards $1,000,000, so the benefit near the top of the range is small.
| Purchase price | Current FHBAS outcome for an eligible home buyer |
|---|---|
| $650,000 | Likely full exemption if all eligibility rules are met |
| $800,000 | Likely full exemption if all eligibility rules are met |
| $900,000 | Potential concessional rate if all eligibility rules are met |
| $1,000,000 | Generally no FHBAS home concession, because the concession applies to homes valued below $1,000,000 |
| $1,200,000 | Generally no FHBAS home concession |
This is why first home buyers should not only ask, “What can I borrow?”
They should also ask, “What cash do I need to settle?”
Is stamp duty relief different for new and established homes?
The First Home Buyers Assistance Scheme can apply to new or existing homes when the eligibility and value rules are met.
That is different from the NSW First Home Owner Grant.
The NSW First Home Owner (New Homes) Grant is $10,000 for eligible new homes valued up to $600,000, or house-and-land packages up to $750,000 (Revenue NSW, checked October 2026). It is only for homes that no one has lived in before.
So a buyer might:
- Qualify for stamp duty assistance on an established home.
- Not qualify for the $10,000 First Home Owner Grant because the property is not new.
These are separate benefits.
How does stamp duty affect your deposit?
Stamp duty is part of the funds-to-complete calculation.
For example, a buyer might have:
- A 10% deposit.
- A clean savings history.
- Stable income.
- A property target.
But if they do not qualify for a full exemption, they may need more cash to settle.
That can force a change to the plan:
- Lower the purchase price.
- Add family gift support.
- Use a different lender.
- Capitalise LMI if allowed and suitable.
- Delay the purchase.
- Change from owner-occupied to a different strategy.
This is why broker, buyer and conveyancer need to be aligned before the contract is signed. The Sydney house deposit guide shows how deposit and costs combine at common price points.
What stamp duty mistakes do first home buyers make?
Mistake 1: Assuming every first home buyer pays no duty
The scheme depends on eligibility and property value.
Mistake 2: Confusing the grant with duty assistance
The $10,000 First Home Owner Grant and FHBAS are different programs.
Mistake 3: Forgetting residence requirements
If the occupancy requirements are not met, the exemption or concession can be lost and duty may become payable. Check the rules with Revenue NSW and your conveyancer.
Mistake 4: Buying just above a threshold without checking the cost
The extra purchase price may be only a few thousand dollars. The total cash impact may be larger.
Mistake 5: Letting old pre-approval numbers drive today’s decision
Borrowing capacity, interest rates, lender policy, and expenses can move. Check the current position before relying on old numbers.
Should you keep your purchase under $800,000?
Sometimes, yes.
If you are eligible and can buy a suitable property at or below $800,000, avoiding transfer duty may improve your position.
But do not buy a weak property just to save duty.
Still check:
- Location.
- Resale appeal.
- Strata costs.
- Building condition.
- Commute.
- Lifestyle fit.
- Long-term lending plan.
The duty saving helps only if the property and loan structure still make sense.
What should you check before making an offer?
Before making an offer, confirm:
- The property value against the FHBAS threshold.
- Whether you meet first-home buyer eligibility.
- Whether you can meet the occupancy requirements.
- The full funds-to-complete number.
- Whether your lender and conveyancer have checked the same assumptions.
Use the stamp duty calculator as a first estimate, then verify the exact amount with Revenue NSW and your conveyancer before exchange. To see how duty relief combines with the 5% Deposit Scheme and the grant, read the NSW first home buyer schemes guide, or talk to NewGen about first home buyer loans.