How do I calculate stamp duty when buying a home?

Stamp duty, also called transfer duty, can be one of the largest upfront costs of buying a home, and it catches many buyers out because it is separate from the deposit. It is a state tax, so the rules differ across the country. Here is how it works and how to calculate it accurately for your situation.

It is a state tax

Stamp duty is charged by each state and territory, not by the federal government, so the rates, thresholds and concessions differ depending on where you buy. That is why a single national figure does not exist, and why advice from one state may not apply in another. Always check the rules for the state you are buying in.

How it is generally calculated

In most states stamp duty is calculated on a sliding scale based on the property value, so a higher priced property attracts more duty, often at an increasing rate. The duty is usually payable around settlement. Because it scales with price, it can be a substantial sum, which is why it needs to be in your budget from the start.

First home buyer concessions

Most states offer first home buyers reduced or waived stamp duty, and the relief is often most generous on new homes or vacant land you intend to build on. The thresholds and conditions vary widely by state, so whether you pay duty, and how much, can depend heavily on whether you are a first home buyer and what type of property you are buying.

South Australia

In South Australia, first home buyers may receive stamp duty relief on eligible new homes and on vacant land bought to build a first home, for contracts entered into on or after 15 June 2023. Eligibility conditions apply, including that the property is a new home or land for a new home and that you meet the first home buyer requirements. The reliable figure comes from the RevenueSA calculator.

Other states differ

Other states have their own rules. Some offer full exemptions for first home buyers on new homes and vacant land, some apply concessions up to certain value thresholds, and some treat established and new homes differently. Because these settings change and differ by state, you should not assume one state rule applies elsewhere, and you should check the current rules for your state.

Use the official calculator

The accurate way to calculate stamp duty is the official calculator on your state or territory revenue office website. These calculators apply the current rates, thresholds and concessions, and let you indicate whether you are a first home buyer and what type of property you are buying, so they give a figure you can rely on for budgeting.

Why estimates online can mislead

General stamp duty estimates from third party sites can be out of date or fail to apply the right concession for your situation, which can leave you budgeting the wrong amount. The official state calculator is the source to trust, because it reflects the current rules and your eligibility, rather than a generic figure.

Factor it in early

Because stamp duty can be significant and varies with your state, property type and first home buyer status, it is best worked out early, before you commit. A broker can help you understand how duty and any concession affect your total funds needed, alongside your deposit and other costs, usually at no cost to you. Always confirm the duty figure with your state revenue office.