Stamp duty in NSW: What it is, when you pay it, and how much it costs

Stamp duty, or transfer duty, is a government tax applied to the purchase of your new home. Whether you’re planning to buy land, build a new home, or step into NSW’s property market for the first time, you will be required to pay stamp duty.

As a big upfront cost, it’s important to understand how it works and why you have to pay it. With careful consideration, you could even reduce how much you pay.

What Is Stamp Duty and What Do You Pay It On?

Stamp duty applies to the purchase of many assets. While many people associate it with buying an existing home, you may need to pay it on vacant land, investment properties, commercial real estate, motor vehicles, and certain insurance policies.

In property transactions, stamp duty is paid by the buyer and must be paid within three months of settlement. When building a home, you’ll only pay stamp duty on the land, not the cost of the construction, which can make a house-and-land package far more affordable upfront.

How Much Is Stamp Duty in NSW?

Stamp duty in NSW is calculated on the value of the property (or land) you’re purchasing. NSW uses a tiered bracket system, with higher-value properties paying a higher rate. It’s easiest to remember by thinking about it this way: the more expensive the property, the more stamp duty you’ll pay. Land-only purchases attract significantly less stamp duty than buying an established home, while first-home buyers may qualify for home-buying schemes, subject to eligibility criteria and property value.

As an example, a $400,000 land purchase costs around $13,000 in stamp duty, while a $1,000,000 established home costs around $40,000+ in stamp duty. This is why many buyers choose to buy land and build their homes, as the transfer duty savings alone can be tens of thousands.

For current rates, Mojo Homes provides a stamp duty calculator that estimates your exact amount based on the purchase price and property type. Most banks and NSW government websites also offer tools that mirror these rates for quick budgeting.

Do You Pay Stamp Duty on a New Build?

If you’re building a brand-new home, you don’t pay stamp duty on the construction cost. You only pay stamp duty on the land value, making new builds one of the most cost-effective paths into the market.

For example, if you purchase a block of land for $450,000 and spend $350,000 building your home, stamp duty is calculated only on the $450,000.

This can make packaged solutions, like Mojo Homes’ house and land packages, highly appealing due to stamp duty savings.

How to Calculate Stamp Duty in NSW

Using Mojo Homes Stamp Duty Calculator is easy! Just follow these three simple steps:

1. Open the Mojo Homes Stamp Duty Calculator in a new tab. Start by selecting your state, the type of purchase (such as vacant land, house and land, or new home). Then add the purchase price of the property or land you're considering.
2. Add your buyer information. Choose whether you're a first-home buyer, an investor, or an owner-occupier. These details matter because certain concessions or exemptions may apply, especially for eligible first home buyers.
3. View your estimated stamp duty. Once your details are entered, the calculator instantly generates an estimate of the stamp duty amount. Use this number to budget for your upfront costs and compare different buying options. Compare the savings available when buying land and building with Mojo Homes.

How to Minimise Stamp Duty in NSW

While stamp duty is unavoidable for most buyers, there are several legitimate ways to reduce what you pay.

Buying land and building on it means that stamp duty only applies to the land component. This alone can save tens of thousands, especially in Sydney and coastal NSW. This is one reason many new buyers build with Mojo Homes: to save upfront costs.

Buy land in lower-value suburbs. If you’re calculating stamp duty on the land price, choosing emerging or high-growth suburbs with affordable land can substantially reduce your transfer duty bill.

Buy your first home with NSWs First Home Assistance Scheme. NSW periodically offers stamp duty concessions and exemptions for first-home buyers on new homes or land purchases. Eligibility criteria often include price caps and residency requirements.

Consider your property type carefully, as established homes attract higher stamp duty than vacant land. If keeping upfront costs down is a priority, a land purchase may be the more strategic move.

FAQs

How much is stamp duty in NSW?

Stamp duty is calculated on the value of the property or land you purchase. Costs vary by price bracket and property type. Calculate your stamp duty here.

How much is stamp duty on a house in NSW?

Established homes attract higher stamp duty than land-only purchases. For an $800,000 home, expect roughly $31,000 in duty (estimate only).

Do you pay stamp duty on a new build?

No, you pay stamp duty only on the land, not the construction cost.

How much is stamp duty overall?

Stamp duty rates differ by state and property value. In NSW, the rate is calculated using a tiered scale, with higher-value properties paying higher rates.