NSW Stamp Duty Exemption for First Home Buyers (2026)
NSW Stamp Duty Exemption for First Home Buyers (2026)
If you’re buying your first home in NSW, stamp duty is the biggest single cost you may not have to pay. The First Home Buyers Assistance Scheme (FHBAS) gives you a full exemption on homes up to $800,000 and a sliding-scale concession on homes between $800,000 and just under $1 million. Vacant land is treated separately, with its own threshold pair at $350,000 and $450,000.
This guide walks you through the current rates, who qualifies, what you’d actually pay at common purchase prices, and a few traps worth knowing before you sign a contract. Transfer duty figures are based on rates effective 1 July 2025, sourced from Revenue NSW. FHBAS thresholds have been in force since 1 July 2023.
What stamp duty actually is
Stamp duty (legally called “transfer duty” in NSW since 2022) is a state government tax you pay when you buy property. It’s paid to Revenue NSW and calculated on the dutiable value of the property, which is normally the purchase price.
For most first home buyers, transfer duty is the second-largest upfront cost after the deposit itself. On a $750,000 home with no concession, you’d be looking at roughly $28,000 in duty alone. That’s why the FHBAS matters so much: it can wipe that bill out entirely if your purchase price falls under the threshold.
NSW transfer duty rates for 2025-26
These are the general rates that apply to anyone buying property in NSW (before any first-home concession is applied). They’re calculated on a marginal-rate basis, the same way income tax works.
| Dutiable value | Duty payable |
|---|---|
| $0 – $17,000 | $1.25 per $100 (minimum $20) |
| $17,001 – $37,000 | $212 plus $1.50 per $100 over $17,000 |
| $37,001 – $99,000 | $512 plus $1.75 per $100 over $37,000 |
| $99,001 – $372,000 | $1,597 plus $3.50 per $100 over $99,000 |
| $372,001 – $1,240,000 | $11,152 plus $4.50 per $100 over $372,000 |
| Over $1,240,000 | $50,212 plus $5.50 per $100 over $1,240,000 |
A premium duty rate of $7 per $100 kicks in for residential property valued above $3,721,000 (very rare territory for a first home buyer).
One change worth flagging: since 1 July 2024, NSW has indexed these bracket thresholds annually each 1 July to track Sydney CPI. The next indexation lands 1 July 2026. The FHBAS thresholds, by contrast, are static. We’ll come back to that.
How the First Home Buyers Assistance Scheme works
The FHBAS is the main NSW concession for first home buyers. It does two things: it exempts you from stamp duty up to a threshold, and it gives you a partial concession on a sliding scale between that threshold and a hard upper limit.
| Property type | Full exemption | Concessional rate (sliding scale) |
|---|---|---|
| New home | Dutiable value up to $800,000 | Above $800,000 and less than $1,000,000 |
| Existing home | Dutiable value up to $800,000 | Above $800,000 and less than $1,000,000 |
| Vacant land (intended as site of first home) | Up to $350,000 | Above $350,000 and less than $450,000 |
At or above the upper limit ($1 million for homes, $450,000 for vacant land), no FHBAS benefit applies and you pay full transfer duty. The scheme treats new and existing homes the same way, which is a useful simplification compared with how it operated pre-2017.
Worked examples: what you’d actually pay
The numbers below come straight from the Revenue NSW FHBAS Calculator, run on 27 April 2026. Each shows the duty before the concession, the FHBAS benefit, and what you’d actually pay.
Existing home at $700,000
| Line | Amount |
|---|---|
| Dutiable value | $700,000 |
| Full transfer duty (no concession) | $25,912 |
| FHBAS benefit | Full exemption |
| Net duty payable | $0 |
| Saving | $25,912 |
Existing home at $850,000
| Line | Amount |
|---|---|
| Dutiable value | $850,000 |
| Full transfer duty (no concession) | $32,662 |
| FHBAS concession | $22,809 |
| Net duty payable | $9,853 |
| Saving | $22,809 |
New home at $900,000
| Line | Amount |
|---|---|
| Dutiable value | $900,000 |
| Full transfer duty (no concession) | $34,912 |
| FHBAS concession | $15,206 |
| Net duty payable | $19,706 |
| Saving | $15,206 |
Vacant land at $400,000 (intended site of first home)
| Line | Amount |
|---|---|
| Dutiable value | $400,000 |
| Full transfer duty (no concession) | $12,412 |
| FHBAS concession | $5,191 |
| Net duty payable | $7,221 |
| Saving | $5,191 |
The sliding-scale logic is worth noticing in the $850,000 example. You’re well past the full-exemption threshold, but the concession still saves you about $23,000. As your purchase price approaches $1 million, that saving phases out.
The $1 million cliff edge
Here’s a planning gotcha that catches buyers out: at exactly $1,000,000, you get nothing from FHBAS. Even $999,000 still picks up a small concession ($152). At $1,000,000, the full duty bill of $39,412 lands on you with no offset.
If you’re stretching the budget to a property right at the upper end, every dollar above $999,999 costs you that lost concession plus the duty on the extra dollar. In practice, that means an offer at $999,500 can leave you significantly better off after duty than an offer at $1,000,000. Worth keeping in mind during negotiation.
FHBAS eligibility: who qualifies
For contracts exchanged on or after 1 July 2023, the rules are:
- Citizenship or residency: at least one of the first home buyers must be an Australian citizen or permanent resident.
- Age: all applicants must be at least 18 years old. The age requirement can be waived in limited cases on application to the Chief Commissioner.
- Move-in window: you must move into the home within 12 months of settlement.
- Minimum residency: you must live there as your principal place of residence for at least 12 continuous months. (This was tightened from 6 months on 1 July 2023.)
- Prior property ownership: you and your spouse or partner must never have owned or co-owned residential property anywhere in Australia, and you must never have previously received an FHBAS exemption or concession.
- No income test, no asset test: FHBAS doesn’t have either, and never has. Only your purchase price matters.
- Individuals only: companies and trusts can’t claim FHBAS (with limited waivable exceptions). The buyers must purchase the entire property.
- Property must be in NSW: the scheme is state-based.
Defence Force members on the Permanent Forces who are enrolled to vote in NSW are exempt from the residence requirement (effective for contracts on or after 19 May 2022). That’s a useful one if you’re posted away from your purchased home.
Stacking FHBAS with the First Home Owner Grant
A lot of first home buyers don’t realise these are separate benefits that can be claimed together. The First Home Owner Grant (FHOG) in NSW is currently $10,000 and applies only to new homes, not existing ones.
| FHOG eligibility point | Detail |
|---|---|
| Grant amount | $10,000 |
| Property type | Newly constructed home, or substantially renovated home |
| Cap (built new home) | Purchase price under $600,000 |
| Cap (house and land package) | Combined cost under $750,000 |
| Citizenship | At least one applicant Australian citizen or permanent resident |
| Age | All applicants 18+ |
| Residency requirement | Move in within 12 months, live there for 12 continuous months |
If you’re building a new home for $580,000, you can claim the $10,000 FHOG and get a full FHBAS exemption (saving you about $21,000 in duty) at the same time. That’s roughly $31,000 in combined benefits, which makes a real difference on a build budget.
Off-the-plan: deferring your stamp duty
Buying off-the-plan as an owner-occupier? You can defer the stamp duty payment for up to 15 months from the date of agreement, or until completion of the contract (whichever is earlier). This is genuinely useful if your settlement is months or years away.
A few rules to know:
- Owner-occupiers only. Investors haven’t been able to defer off-the-plan duty since 1 July 2017, and that hasn’t changed.
- No foreign buyers. All purchasers must be Australian citizens or permanent residents who’ve lived here for more than 200 days in the 12 months before exchange.
- Same residency requirement as FHBAS. At least one purchaser must move in within 12 months and live there for 12 continuous months.
- Defence Force members on the Permanent Forces enrolled to vote in NSW are exempt from the residence requirement.
Other NSW stamp duty exemptions
Stamp duty isn’t only about first home buyers. Two other exemption pathways come up regularly:
Transfers between married couples or de facto partners. No duty is payable when residential land is transferred between partners (during the relationship) where the property is the family home or vacant land intended as the site of the family home. The property must be held 50/50 after the transfer. De facto couples need to have lived together for at least two years, or have a child of the relationship. Use form ODA 068.
Property transfers on relationship breakdown. Section 68 of the Duties Act 1997 (NSW) provides a full exemption when property is transferred between parties as a result of marriage or de facto relationship breakdown. The Chief Commissioner needs to be satisfied that the relationship has ended, and you’ll need supporting documentation (financial agreement, court orders, or written agreement). Use form ODA 069.
If either applies to your situation, get advice from your conveyancer or solicitor before signing.
When and how is stamp duty paid?
For standard transactions, transfer duty is payable within 3 months of the contract exchange date. In practice, your conveyancer or solicitor will arrange payment as part of the settlement. With most six-week contracts, settlement falls inside the 3-month window, so duty is paid at settlement.
Off-the-plan owner-occupier purchases are the exception: deferred up to 15 months as covered above.
What about the Property Tax for First Home Buyers?
You may have heard of the “First Home Buyer Choice” scheme, which let first home buyers opt for an annual property tax instead of upfront stamp duty. That scheme operated for one window only, from 16 January 2023 to 30 June 2023, before the Minns Government abolished it from 1 July 2023.
Buyers who opted in during that brief window are grandfathered and continue paying the annual property tax. For everyone buying today, FHBAS is the only relevant first home buyer concession on stamp duty.
A note on indexation
It’s worth being aware of a structural quirk that’s been building since 2024. The general transfer duty brackets are now indexed annually each 1 July, but FHBAS thresholds are not. The $800,000 full-exemption ceiling has been static since 1 July 2023, so as median Sydney prices keep climbing, the FHBAS net is gradually catching fewer buyers in real terms. Whether the government revisits the thresholds is anyone’s guess, but it’s a reason to act on FHBAS while you’re still under the cap.
Frequently asked questions
Who actually pays the stamp duty?
The buyer pays it. Payment goes to Revenue NSW and is normally arranged by your conveyancer or solicitor at settlement.
Do I pay stamp duty on the land plus the build, or just the land?
Just the land. If you’re buying a house and land package on two separate contracts (one for the land, one for the build), stamp duty is calculated on the land contract only. The construction cost isn’t dutiable. This is one of the most common misconceptions we see at Mortgage World.
Can I get FHBAS if I’m buying with my partner who has owned property before?
No. The rule applies to both you and your spouse or partner. If either of you has previously owned property in Australia, neither qualifies for FHBAS on this purchase. There’s no workaround for joint applications.
Is there a stamp duty discount for pensioners or downsizers?
NSW doesn’t currently have a stamp duty exemption specifically for pensioners or seniors downsizing. Other states have variations of these schemes, but in NSW, they don’t apply. Always check Revenue NSW directly for the most current state of play.
What happens if I buy at exactly $1,000,000?
You pay full transfer duty with no FHBAS benefit. The scheme caps out at “less than $1 million”, so even $999,999 still attracts a small concession, but $1,000,000 doesn’t. If you’re negotiating around that price, the difference can be five figures.
Do I qualify if I’ve inherited a property in the past?
If you inherited a residential property and held it (whether you lived in it or not), you’ve owned property in Australia and FHBAS doesn’t apply. Some narrow exceptions exist around inherited interests, so if your situation is unusual, get specific advice from Revenue NSW or a property lawyer.
Can I buy with a friend or sibling and still claim FHBAS?
Yes, as long as both buyers (and their respective spouses or partners) meet the eligibility rules. Each of you needs to be a first home buyer, and at least one of you needs to live in the property as your principal place of residence for the 12-month period.
Final word
Stamp duty is a big-ticket item, and FHBAS is the most valuable concession a NSW first home buyer can access. The numbers move with property prices, the thresholds don’t, and the $1 million cliff is a real planning consideration if you’re aiming at the upper end of the Sydney market.
If you’re working out what your true upfront cost looks like (deposit, stamp duty after concession, lenders’ mortgage insurance, conveyancer’s fees), talk it through with a mortgage broker who can model it against your borrowing capacity. Getting the picture right before you offer keeps you out of nasty surprises at settlement.
This article contains general information only and does not constitute financial advice. Your personal financial situation, objectives and needs have not been considered. Before acting on any information, you should consider its appropriateness to your circumstances. Speak to a qualified mortgage broker for advice tailored to your situation. Mortgage World Australia Pty Ltd is a credit representative (CR No. 396946) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
