Stamp duty — formally known as transfer duty in most Australian states — is a state government tax levied on the purchase of property. It is one of the single largest upfront costs investors face, yet many buyers underestimate it or fail to factor it into their true cost base for capital gains tax purposes. In 2026, stamp duty rates, concessions, and exemptions vary significantly between states and territories. This guide explains how stamp duty is calculated in each state, what concessions are available, how foreign buyers are affected, and the tax treatment of stamp duty for investment properties.
How Stamp Duty Is Calculated — State by State
Stamp duty is calculated on a sliding scale — the higher the property value, the higher the rate applied, though the rate schedule differs by state. Brackets and thresholds change regularly, so always verify with your state revenue authority before settlement. As a general guide for 2026: NSW (Revenue NSW): On a $700,000 investment property, stamp duty is approximately $26,900. On $1,000,000, approximately $40,900. NSW also levies a land tax surcharge for foreign investors (additional 4% stamp duty surcharge). VIC (State Revenue Office): On $700,000, approximately $37,070. On $1,000,000, approximately $55,000. Victoria has one of the highest stamp duty rates in Australia. A foreign purchaser surcharge of 8% applies. QLD (OSR): On $700,000, approximately $21,850. On $1,000,000, approximately $34,500. QLD is relatively more affordable for stamp duty. Foreign buyer surcharge: 7%. WA (Revenue WA): On $700,000, approximately $23,928. On $1,000,000, approximately $37,178. Foreign buyer surcharge: 7%. SA: On $700,000, approximately $31,585. On $1,000,000, approximately $48,830. ACT: The ACT is transitioning from stamp duty to an annual land tax system (rates payable) — stamp duty rates are being reduced each year and will eventually be phased out entirely. TAS: On $700,000, approximately $27,720. On $1,000,000, approximately $42,720. NT: On $700,000, approximately $28,820. On $1,000,000, approximately $44,820.
Estimated Stamp Duty on $700,000 Investment Property — By State 2026
Stamp duty rates vary significantly between states — Victoria charges roughly 70% more than Queensland on a $700,000 purchase. These are estimates only; rates and thresholds change regularly. Always verify with the relevant state revenue authority before settlement, or ask your conveyancer to calculate the exact amount payable for your specific transaction.
Stamp Duty Concessions — First Home Buyers vs Investors
Most stamp duty concessions in Australia are exclusively available to first home buyers purchasing owner-occupied properties — investors generally do not qualify. In NSW, first home buyers pay no stamp duty on properties up to $800,000 and a concessional rate up to $1,000,000, but this applies only to the principal place of residence. In VIC, the first home buyer duty exemption applies to properties up to $600,000 (owner-occupied). In QLD, first home concession is available on properties up to $700,000 (owner-occupied). None of these apply to investment properties. Some states offer a temporary duty exemption or concession for off-the-plan purchases — check with your state revenue authority and conveyancer, as these schemes change frequently and have strict eligibility criteria.
Foreign Buyer Stamp Duty Surcharge
Foreign investors purchasing Australian residential property face an additional stamp duty surcharge on top of the standard rate: NSW (4%), VIC (8%), QLD (7%), WA (7%), SA (7%), ACT (no surcharge currently), TAS (varies). This surcharge is in addition to the Foreign Investment Review Board (FIRB) approval fee (which starts from $14,100 for a residential property under $1M) and the annual foreign investor vacancy fee. For foreign investors, these combined costs can add 10-15% to the effective purchase cost — a significant factor in yield calculations.
Is Stamp Duty Tax Deductible for Investment Properties?
No — stamp duty on the purchase of an investment property is NOT tax deductible as an immediate expense. It is treated as a capital cost and forms part of your cost base for capital gains tax (CGT) purposes. This means when you eventually sell the property, stamp duty is added to your cost base, which reduces your capital gain and therefore your CGT liability. The practical implication: stamp duty gives you no immediate tax benefit, but it does reduce your CGT when you sell. Always keep your stamp duty receipt and include it in your cost base records — missing this can result in paying more CGT than necessary at sale. Your conveyancer or accountant can advise on cost base record keeping.
Stamp duty is one of the few purchase costs that investors cannot deduct immediately — but it is not wasted. It builds into your cost base and reduces your CGT when you eventually sell. Treat it as deferred tax relief, budget for it accurately before purchase, and keep the records so you get credit for it at sale.
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General Advice Warning: This article is general in nature and does not constitute personal financial advice. Please consult a licensed financial adviser before making investment decisions.
