Guide · 2025-26

How Is Stamp Duty Calculated in Australia?

Stamp duty looks mysterious until you see the mechanism: a dutiable value, a sliding scale of brackets, and then any concessions or surcharges. Here's the whole sequence in plain English.

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The four-step sequence

1

Find the dutiable value

Usually the higher of the price you pay and the property's market value.

2

Apply the state's scale

Each slice of value is taxed at its bracket rate — the rate rises as value rises.

3

Subtract concessions

First home, owner-occupier and other concessions reduce or remove the duty.

4

Add any surcharges

Foreign purchasers pay an extra percentage on top of the standard duty.

Why it's a sliding scale, not a flat rate

Australian transfer duty is progressive. Just like income tax, only the portion of value inside each band is charged at that band's rate. That's why a small increase in price near a bracket edge only lifts duty a little — and why the "effective rate" (duty ÷ price) is always lower than the top bracket rate.

A quick example

In NSW, an $800,000 home isn't taxed at one flat rate. The first slices are taxed lightly and only the portion above $387,000 attracts the $4.50 per $100 rate — giving about $30,188 in total, an effective rate of roughly 3.77%.

What changes your number

See it on your own numbers

The fastest way to understand your duty is to watch it change as you type. Open the stamp duty calculator, choose your state and slide the price.

Frequently asked questions

What is dutiable value?

It is the amount duty is charged on — usually the greater of the purchase price and the property's market value. Duty is then applied to that figure using your state's scale.

Is stamp duty a percentage?

Not a flat one. It is a progressive, sliding scale: higher-value slices are taxed at higher rates, so the effective rate rises with price.

When do I pay stamp duty?

Usually within a set period after signing the contract or at settlement, depending on the state. Your conveyancer normally arranges payment.