How To: Calculate Stamp Duty (With Stamp Duty Calculator)

Joshua Chadwick By Joshua Chadwick May 16th

When a property is up for sale, the value of a home and the subsequent purchase price seems pretty straightforward.

In theory, once you receive your home loan you’re good to proceed with purchasing a residential property. However, what isn’t mentioned is the other expenses that add up, one of which is stamp duty (land transfer duty).

Stamp duty isn’t as clear-cut as the purchase price of a property, with its own set of sums that add to the total price of stamp duty. Here, we’ll dive into everything you need to know about stamp duty, and how you can calculate exactly how much you need to pay before purchasing your new home.

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What Is Stamp Duty?

Stamp duty is a state government tax that can be found in several transactions. These payments can range from purchasing a motor vehicle to insurance policies, and of course real estate. Stamp Duty can also be referred to as “land transfer duty” when in reference to property.

Each state in Australia has its own government fees surrounding stamp duty, meaning the transfer fee you pay in Victoria (VIC) will not be the same as the charges you pay in Queensland (QLD). Check with your state’s revenue office to verify local government fees.

How Much Stamp Duty Do I Pay?

The amount of stamp duty and interest rates will vary depending on the purpose of purchase and the type of property. The fees of purchasing an owner-occupied property as a first home buyer will likely be significantly less than a buyer who has owned property before or currently.

Stamp duty rates also change if you’re classified as a foreign purchaser, especially if the property purchase is intended as an investment property rather than a primary residence.

The value of the property will also determine your total stamp duty owed, as an established home will net a higher stamp duty than a plot of vacant land or cheaper property. These values are segmented into brackets, with the first property value bracket as little as $14,000 in New South Wales (NSW).

For a more accurate summary of the brackets, please see below the price brackets for each state.

NSW Price Brackets

ACT Price Brackets

VIC Price Brackets

TAS Price Brackets

SA Price Brackets

QLD Price Brackets

WA Price Brackets

NT Price Brackets

Are There Any Exemptions?

Before preparing to spend thousands of dollars in tax, you may fall under eligibility for a stamp duty exemption if you’re purchasing a home for the first time or you’re a pensioner.

This exemption can come in the form of a First Home Owner grant, which several states offer to those purchasing a house for the first time under a certain price.

For example, those in Victoria are exempt from paying stamp duty under the first homeowner grant if the dutiable value of the property is up to $600,000. The duty concession applies where the dutiable value is more than $600,000 but not more than $750,000.

While you may be exempt from a stamp duty fee, this does not cover other home loan repayments and upfront costs, such as mortgage registration fees, transfer of land and other total government fees excluding loan amount and borrowing power.

For those who don’t qualify for a full exemption, there are still reduced rates up to 50% off for stamp duty. For more information on stamp duty exemptions, check out the First Home Owner Grant website here. Updated as of February 1, 2022

Stamp Duty Calculator

For any further questions about moving home as a whole, we’ve put together the ultimate guide to moving house, which you can check out here. If you’re looking to get an early start on maintaining your new home, check out our home maintenance checklist here.

If you need help getting your utilities connected sorted, please call MyConnect on 1300 854 478 or use the Get Connected form here! All residents from Victoria (VIC), Queensland (QLD), New South Wales (NSW), Australian Capital Territory (ACT), and South Australia (SA) can get connected this very business day. If you’re a first home buyer and you’re unsure about using a utility connection company, this post here can assist you. FAQs can be found here.

Disclaimer: This article is provided for general information purposes only. Its content is current at the date of publication. It is not legal advice and is not tailored to meet your individual needs. You should obtain specialist advice based on your specific circumstances before taking any action concerning the matters discussed in this article.

Joshua Chadwick
Joshua Chadwick