29 Oct 2026 * 5 minute read

When you buy a home, an investment property or a piece of land, you'll more than likely need to pay stamp duty, which is a cost charged by state and territory governments to cover the legal transfer of ownership. Here, we explore when to pay, who may be exempt, and how Westpac's stamp duty calculator can help you estimate your costs ahead of time.

Key takeaways

• Stamp duty is a state or territory tax on property transactions, calculated on the purchase price or market value, whichever is higher.
• It's typically paid on or before settlement, though off-the-plan buyers may defer payment for up to 12 months.
• First home buyers, pensioners and other eligible customers can often access exemptions and concessions, varying by state or territory.
• A stamp duty calculator can help you estimate this cost ahead of time, so it’s easier to factor into your budgeting.

What is stamp duty and why does it apply?

Stamp duty is a tax charged by state and territory governments on property transfers. Sometimes called transfer duty, it is one of the largest upfront costs in a real estate purchase. State governments rely on it as a significant revenue source, which is why it applies broadly across property transactions.

What types of property incur stamp duty?

Stamp duty generally applies to residential property, an investment property, commercial and industrial property, and vacant land. Landholder duty may also apply in some cases, such as buying shares in a company with significant property assets.

Who needs to pay stamp duty?

In most transactions, it’s the buyer, or “transferee” who needs to pay stamp duty. This includes owner-occupiers, investors, and anyone purchasing vacant land, whether they’re buying for the first time or have bought property before.

If you're a foreign buyer, most states and territories apply an additional foreign purchaser surcharge on top of standard stamp duty rates. This can add a significant cost to a purchase, so it may be helpful to check your residency status and how it affects your total cost before making an offer.

How is stamp duty calculated?

Stamp duty is calculated on the “dutiable value of the property”. This is generally the higher of either the purchase price or the property's current market value.

Most states and territories use a sliding-scale rate structure, where the percentage of duty payable increases in bands as the property value rises.

Stamp duty calculator

Because stamp duty increases the amount of money required for a purchase, it can significantly affect the total cost of buying property. Knowing how much duty you'll pay ahead of time helps you adjust your budget and avoid surprises close to settlement.

Westpac's stamp duty calculator lets buyers estimate their likely costs before making an offer. By entering the purchase price, property type and state or territory, buyers get a clearer picture of their total settlement costs.

Use the Westpac stamp duty calculator

When and how is stamp duty paid?

Stamp duty is due on or before settlement, and must generally be paid within three months of:

• Signing the contract for sale
• The date of deed, or
• If there’s no contract, the date you agree to transfer.

First-time home buyers may have different deadlines. Failing to pay on time can incur interest charges, so it's worth diarising the due date once contracts are exchanged.

If you purchase property off-the-plan, you may be able to delay paying stamp duty for up to 12 months, depending on where you purchase.

Common payment methods include electronic funds transfer (EFT) or direct payment through your conveyancer to the relevant state or territory revenue office. You'll generally need documentation such as the contract of sale, transfer documents, and proof of any exemption or concession you're claiming.

Different approaches between states and territories

Each state has different rates and exemptions, and even the name can change. Learn more at your state or territory revenue office website:

• ACT Revenue Office
• NSW Revenue Office
• Territory Revenue Office
• QLD Revenue Office
• Revenue SA
• State Revenue Office of Tasmania
• State Revenue Office Victoria
• WA Department of Finance

Who is exempt from paying stamp duty?

Many jurisdictions offer exemptions or concessions for first home buyers, with eligibility depending on property value and state or territory rules. Pensioners may also be eligible, and some states have offered reduced rates during specific periods, such as during the COVID-19 pandemic.

Common exemptions and concessions to check include:

• The First Home Buyer Assistance scheme, offering full or partial exemptions for eligible buyers
• Concessions for transfers between partners, or following a relationship breakdown
• Pensioner concessions
• Off-the-plan deferral arrangements
• Exemptions may also apply when property is transferred to a beneficiary of a deceased estate

The First Home Buyer Assistance scheme is generally the most significant concession for eligible buyers, potentially reducing or eliminating stamp duty altogether depending on the purchase price and whether the property will be your primary residence.

Because exemptions vary by state and often come with property value limits, it can be worth verifying your eligibility directly with your state or territory revenue office, and keeping evidence such as proof of identity, evidence of first home buyer status, or relationship documentation on hand, as this may be required to support your claim.

Other costs you might not expect

Stamp duty is usually paid separately from your mortgage, using savings rather than loan funds, so it's worth factoring this into your deposit planning early. Beyond stamp duty, buyers should budget for conveyancing, inspections, loan fees and, for some buyers, foreign buyer surcharges. Together, these can add up, so it pays to estimate the full amount before you commit to a purchase.

Learn more in the Westpac How to Buy a House guide

To sum up

Stamp duty is a significant part of the upfront cost of buying property, and it varies depending on where you're purchasing, who's buying, and what type of property is involved. Understanding how the dutiable value is calculated, when payment is due, and whether you qualify for an exemption or concession may help you plan your budget with confidence.

Using a tool like Westpac's stamp duty calculator before you make an offer, and speaking with your conveyancer or mortgage broker along the way, may mean fewer surprises at settlement.