Stamp Duty Explained for First Home Buyers (2026 State-by-State Guide)

How stamp duty is calculated

Each state publishes a progressive rate table — marginal brackets, much like income tax. As an indicative 2026 example, NSW charges about 1.25% on the portion of value between $33,000 and $93,000, rising to about 5.5% above $350,000 (plus a premium rate above $3.1 million); Victoria, Queensland, South Australia and Western Australia each have their own tables with different breakpoints and top rates. Foreign purchasers pay a surcharge on top in most states.

The crucial point for new-build buyers: duty is assessed on the dutiable value, and for house and land packages contracted as separate land and building contracts, most states assess duty primarily on the land component — not the finished home. That is a structural saving of tens of thousands of dollars versus buying an equivalent completed home, and it stacks with first home buyer concessions. Use our calculators to model a full purchase budget including duty.

First home buyer concessions and exemptions in 2026

New South Wales offers the cleanest exemption: under the First Home Buyer Assistance scheme, eligible buyers pay no duty at all on new and existing homes up to $800,000, with a concessional rate for purchases between $800,000 and $1,000,000. Victoria exempts first homes up to $600,000 and phases concessions to $750,000. Queensland provides a full concession for owner-occupied homes (new or established) at or below $500,000 and partial relief to $550,000. Western Australia exempts purchases up to $430,000 with concessions to $530,000, and South Australia targets its relief at apartments and off-the-plan city dwellings.

Two cautions. First, these thresholds are adjusted only occasionally and 2026 figures should be confirmed with the state revenue office before you sign — the figures here reflect published settings as at October 2026. Second, eligibility usually requires you to live in the property for a continuous period (commonly six or twelve months). Renting it out straight away can trigger a clawback of both duty relief and the First Home Owner Grant.

Worked examples for typical 2026 purchases

Consider a first home buyer purchasing a $750,000 house and land package in a Queensland growth corridor: duty on the $380,000 land component (using QLD's first-home concession structure) can be as little as zero to a few thousand dollars, plus the $30,000 FHOG — a total government contribution that can exceed $30,000. The same buyer purchasing a $750,000 established home in Sydney would pay no duty under the NSW exemption, but would receive no grant. An investor buying either property pays full duty with no concessions.

The pattern to notice: concessions are strongest where governments want supply — new homes and growth corridors. That is not an accident; it means a well-chosen house and land package stacks the FHOG, duty relief, and (for eligible buyers) the First Home Guarantee's 5%-deposit no-LMI loan. Our schemes hub maps every program by state, and each suburb page lists current land prices so you can see which corridors keep you under the caps.

Frequently asked questions

Do first home buyers pay stamp duty in 2026?

In most cases, far less than other buyers — and often nothing. NSW exempts eligible purchases to $800,000, Victoria to $600,000, Queensland's concession effectively eliminates duty on homes under $500,000, and WA to $430,000. Thresholds differ for established vs new homes in some states.

Is stamp duty payable on house and land packages?

Yes, but usually only on the land component when the land and build are separate contracts. On a $400,000 lot the duty is a fraction of what the same home would attract as a completed sale — one of the quiet advantages of building new.

Can stamp duty be added to my mortgage?

Some lenders will capitalise duty into the loan, but that means paying interest on it for 25–30 years. Where possible it is cheaper to fund duty from savings or the FHOG, which can arrive at settlement when applied through an approved agent.

What happens if I move out within 12 months?

Most states require continuous owner-occupation for 6–12 months to keep concessions and the grant. Moving out early can trigger a clawback — notify the revenue office if your circumstances change rather than waiting to be audited.

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