How is stamp duty calculated
How is stamp duty calculated?
When purchasing a property in NSW you may be liable to pay two types of Stamp Duty:-
- Stamp duty on the property purchase price;
- Stamp duty on the amount borrowed
Stamp Duty payable on Transfer of Property
The NSW Government charges Stamp Duty when property is sold. The amount payable is based on the sale price and is calculated according to the rules below (for NSW):-
| Property Price | Stamp Duty Payable |
| $0-$14,000 | $1.25 for every $100, with a minimum of $10 |
| $14,001-$30,000 | $175 plus $1.50 for every $100 over $14,000 |
| $30,001-$80,000 | $415 plus $1.75 for every $100 over $30,000 |
| $80,001-$300,000 | $1,290 plus $3.50 for every $100 for $80,000 |
| $300,001-$1,000,000 | $8,990 plus $4.50 for every $100 over $300,000 |
| $1,000,001 and over | $40,490 plus $5.50 for every $100 over $1,000,000 |
Tax is payble within three months of Exchange of Contracts, unless a property is purchased 'Off the Plan'. If purchased off the plan, then the duty is payable with 3 months of :-
- Completing the agreement;
- Assigning the whole, or any part, of the buyer's interest under the agreement;
- 12-month expiry after the agreement date
(whichever occurs first)
Whilst GST is not payable on Stamp Duty, if a property is purchased which has a GST component to it, then Stamp Duty is calculated in the GST-inclusive amount.
Note - Stamp Duty rates vary from State to State.
Stamp Duty Payable on Mortgages
The NSW Government charges the purchaser a Duty on mortgages that are secured in NSW. The amount payable is based on the value of the mortgage that is secured, and is calculated according to the rules below (for NSW) :-
| Secured Amount | Stamp Duty Payable |
| $0-$16,000 | $5 |
| $16,001 and over | $5 plus $4.00 for every $1,000, or part, in excess of $16,000 |
The mortgage duty is payable when the mortgage document is signed.
Here is a brief explanation of exemptions or concessions that may apply if you're a First Home Buyer:-
If you are buying or building your First Home in NSW, the NSW government offers a 'First Home Plus' scheme that may result in discounts or exemptions on the transfer of Stamp/Mortgage duties.
First Home buyers will (typically) receive exemptions on both transfer and mortgage duties for homes valued up to $500,000. Concessions apply for homes that are valued between $500,000 and $600,000.
A Quick Summary
| Purchase Price or Borrowed Amount | NSW Stamp Duty on Property Purchase* (Property Stamp Duty) | NSW Stamp Duty on Amount Borrowed (Mortgage Duty) |
| $400,000 | $13,490.00 | $1,541.00 |
| $500,000 | $17,990.00 | $1,940.00 |
| $600,000 | $22,490.00 | $2,341.00 |
| $700,000 | $26,990.00 | $2,741.00 |
| $800,000 | $31,490.00 | $3,141.00 |
| $900,000 | $35,990.00 | $3,541.00 |
| $1,000,000 | $40,490.00 | $3,941.00 |
| $1,100,000 | $45,990.00 | $4,341.00 |
| $1,200,000 | $51,490.00 | $4,741.00 |
| $1,300,000 | $56,990.00 | $5,141.00 |
| $1,400,000 | $62,490.00 | $5,541.00 |
| $1,500,000 | $67,990.00 | $5,941.00 |
| $1,600,000 | $73,490.00 | $6,341.00 |
| $1,700,000 | $78,990.00 | $6,741.00 |
| $1,800,000 | $84,490.00 | $7,141.00 |
| $1,900,000 | $89,990.00 | $7,541.00 |
| $2,000,000 | $95,490.00 | $7,941.00 |
| $2,500,000 | $122,990.00 | $9,941.00 |
| $3,000,000 | $150,490.00 | $11,941.00 |