Stamp duty is one of the largest upfront costs when buying property in Australia, and for first home buyers, the rules around concessions and exemptions vary considerably by state and territory. This guide covers the 2025-26 thresholds for every state, with real dollar examples, so you can work out what you might actually owe before you make an offer.
Stamp duty is a state government tax on the purchase of property. It is calculated as a percentage of the purchase price, and the rate typically increases in tiers as the price rises. On a $700,000 purchase in a state without a first home buyer exemption, stamp duty can easily reach $25,000 to $30,000. For first home buyers, most states offer either a full exemption below a threshold, a concessional rate, or both. Knowing which side of a threshold you are on can change your upfront costs by tens of thousands of dollars.
These thresholds and concessions are set by state governments and can change with each budget cycle. The figures below reflect 2025-26 rates. Always confirm with the relevant state revenue office before you exchange contracts.
NSW offers first home buyers a full exemption from stamp duty on properties valued up to $800,000. Properties valued between $800,000 and $1,000,000 receive a concessional rate. Properties above $1,000,000 are charged full duty with no concession.
The exemption applies to both new and existing homes, provided the buyer has never previously owned property in Australia and will occupy the home as their principal place of residence for at least 12 months.
Example: A first home buyer purchasing a $750,000 property in Sydney pays $0 in stamp duty under the exemption. The same buyer purchasing at $850,000 would pay a reduced rate, typically around $5,000 to $8,000 depending on the exact calculation.
NSW also introduced a land tax option in January 2023 for eligible first home buyers. Instead of paying stamp duty upfront, buyers can opt to pay an annual land tax of $400 plus 0.3% of the land value. This option is available on properties up to $1.5 million. It suits buyers who plan to sell or move within a few years, because the annual tax can accumulate to more than the stamp duty avoided if you hold the property for many years.
Victoria offers a stamp duty exemption for first home buyers on properties valued up to $600,000. Properties between $600,001 and $750,000 receive a sliding scale concession. Above $750,000, full duty applies.
Example: A first home buyer purchasing at $580,000 in Melbourne pays $0 in duty. At $650,000, the concession reduces the duty to around $7,000 rather than the full $31,000 that would otherwise apply. At $780,000, full duty of around $41,000 applies.
Victoria's thresholds have not kept pace with Melbourne property prices, which means a large portion of first home buyers purchasing in metro areas receive no benefit. The thresholds are more useful for regional purchases where prices are below $600,000.
Queensland applies stamp duty (called transfer duty) on all property purchases but offers first home buyer concessions through the First Home Concession. This gives a concessional rate on homes valued up to $700,000. The concession amount reduces as the purchase price rises.
Example: On a $600,000 purchase, a Queensland first home buyer would typically pay around $0 under the full concession. On a $700,000 purchase, the duty falls to approximately $7,175 rather than the standard rate of around $21,850. Above $700,000, the standard rate applies in full.
Queensland's First Home Owner Grant of $30,000 is also available for new homes built or purchased below $750,000, which can offset stamp duty on higher-value purchases.
South Australia does not have a broad stamp duty exemption for first home buyers. Standard rates apply on all purchases. However, first home buyers in SA may be eligible for the First Home Owner Grant of $15,000 on new homes, which partially offsets the stamp duty cost.
Example: On a $550,000 purchase in Adelaide, a buyer would pay full stamp duty of approximately $21,330. The $15,000 grant reduces the net cost if the property is newly built, but stamp duty is still payable upfront.
Western Australia offers a first home buyer duty exemption on established homes valued up to $430,000 and on vacant land up to $300,000. A concessional rate applies to established homes up to $530,000 and vacant land up to $400,000.
Example: On a $420,000 purchase in Perth, a first home buyer pays $0 in duty. At $500,000, the duty reduces to approximately $6,900 under the concession. At $600,000, full duty of around $17,765 applies.
WA's thresholds are low relative to current Perth prices. The city has seen significant price growth in recent years, and the exemption thresholds have not been updated to reflect this, leaving many Perth first home buyers ineligible.
The Australian Capital Territory operates a different model. The ACT abolished stamp duty for eligible first home buyers with household incomes below $160,000 under the Home Buyer Concession Scheme. The concession applies to both new and established homes with no upper property value limit, though it phases out at higher incomes.
Example: An ACT first home buyer with household income under $160,000 purchasing a $700,000 home pays $0 in duty. The same buyer with income above the threshold pays full duty of around $26,750.
Tasmania offers a 50 per cent concession on stamp duty for first home buyers on established homes valued up to $600,000. New homes may qualify for additional grant assistance through the First Home Owner Grant of $30,000.
Example: On a $500,000 purchase in Hobart, the standard duty would be around $15,300. The 50% concession reduces this to approximately $7,650.
The NT provides a First Home Owner Discount of up to $18,601 off the transfer (stamp duty) for first home buyers. This effectively eliminates duty on purchases below a certain value and reduces it on higher purchases.
Example: On a $400,000 purchase in Darwin, the standard duty of around $16,500 is reduced to approximately zero under the discount. At $600,000, the full discount amount applies but is less than the total duty, leaving approximately $6,500 to $9,000 payable.
Beyond state-level stamp duty concessions, the federal government's First Home Guarantee (part of the Home Guarantee Scheme) allows eligible first home buyers to purchase with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI). This is not a stamp duty concession, but it reduces a separate significant cost. The scheme is administered through the National Housing Finance and Investment Corporation (NHFIC) via approved lenders, and places are limited each financial year.
State revenue offices all publish online calculators. The Office of State Revenue in your state is the authoritative source. Thresholds change at state budget time, so confirm current figures if you are purchasing more than a few months from when this article was written. Also check whether concessions apply to your property type: some concessions exclude investment properties, some exclude land only purchases, and most require owner-occupation for a minimum period after settlement.
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