Pay NSW transfer duty on residential property acquisitions
Variable transfer duty rates; foreign purchaser additional duty 9%.
Who must comply
Any purchaser or transferee acquiring dutiable property in NSW (a home, land, investment property or business asset), including companies and trusts. Sellers and transferors do not pay. Declaring or acknowledging a trust over NSW property, granting or transferring an option to purchase land, creating a life estate and foreclosing a mortgage can also attract duty.
What triggers it
Signing a contract for sale, agreeing to a transfer without a contract, or executing a deed that transfers or creates an interest in NSW property. The rate year is fixed by the contract date, or the transfer date where there is no contract.
When due
By the earliest of settlement, or 3 months after signing the contract, the transfer agreement date or the deed date. Eligible off-the-plan purchases may defer payment by up to an additional 12 months.
Evidence required
Duty assessment and payment receipt (usually lodged by the solicitor or conveyancer); evidence of dutiable value, including a formal valuation where there is no consideration, the parties are related, no selling agent was used or Revenue NSW is not satisfied the price reflects value; exemption or concession eligibility records (first home buyer, spouse or deceased estate transfers); foreign-person status declaration.
Max penalty
Revenue NSW charges daily interest at a variable rate on overdue duty, backdated to the due date, and may also impose penalty tax. NSW Land Registry Services will not register the transfer until all duty, interest and penalties are paid, and unpaid duty is recoverable as a debt, including by a charge on land or wind-up proceedings
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Under the Duties Act 1997 (NSW), the purchaser or transferee of NSW property pays transfer duty each time dutiable property is acquired, unless an exemption applies. Duty is calculated on the dutiable value, being the higher of the agreed price and the market value, on a sliding scale that Revenue NSW indexes to CPI each year. For 2026-27 the general scale runs from $1.25 per $100 up to $52,237 plus $5.50 per $100 above $1,290,000; residential property above the $3,870,000 premium threshold pays $194,137 plus $7.00 per $100 above that threshold. Foreign persons buying residential-related property also pay surcharge purchaser duty at 9% of the dutiable value, at the same time. Eligible first home buyers pay no duty on a home valued at $800,000 or less, with reduced duty below $1 million.
Enforced by
Source legislation
Topics
Related
- NSWPay NSW land taxNSW land tax applies on aggregated unimproved land value above $1.075M general threshold (2026).
- VICPay Victorian stamp duty on residential propertyVariable rates by purchase price; foreign purchaser surcharge 8%. PPR concession available.
- QLDPay QLD transfer duty on residential propertyQLD transfer duty progressive; foreign acquirer additional duty 8% (from 1 July 2024).
- NSWPay NSW payroll tax when threshold metNSW: 5.45% on Australian wages above the $1.2 million tax-free threshold (FY2026-27).
- QLDPay Queensland payroll tax when threshold metQLD: 4.75% on Australian wages above the $1.3 million tax-free threshold (FY2026-27).
- ACTPay ACT payroll tax when threshold metACT: 6.75% on Australian wages above the $1.75 million tax-free threshold (FY2026-27).
Frequently asked questions
- Who must comply with NSW transfer duty on residential property acquisitions?
- Any purchaser or transferee acquiring dutiable property in NSW (a home, land, investment property or business asset), including companies and trusts. Sellers and transferors do not pay. Declaring or acknowledging a trust over NSW property, granting or transferring an option to purchase land, creating a life estate and foreclosing a mortgage can also attract duty.
- What triggers NSW transfer duty on residential property acquisitions?
- Signing a contract for sale, agreeing to a transfer without a contract, or executing a deed that transfers or creates an interest in NSW property. The rate year is fixed by the contract date, or the transfer date where there is no contract.
- When is NSW transfer duty on residential property acquisitions due?
- By the earliest of settlement, or 3 months after signing the contract, the transfer agreement date or the deed date. Eligible off-the-plan purchases may defer payment by up to an additional 12 months.
- What is the maximum penalty for NSW transfer duty on residential property acquisitions?
- Revenue NSW charges daily interest at a variable rate on overdue duty, backdated to the due date, and may also impose penalty tax. NSW Land Registry Services will not register the transfer until all duty, interest and penalties are paid, and unpaid duty is recoverable as a debt, including by a charge on land or wind-up proceedings
- What evidence is required for NSW transfer duty on residential property acquisitions?
- Duty assessment and payment receipt (usually lodged by the solicitor or conveyancer); evidence of dutiable value, including a formal valuation where there is no consideration, the parties are related, no selling agent was used or Revenue NSW is not satisfied the price reflects value; exemption or concession eligibility records (first home buyer, spouse or deceased estate transfers); foreign-person status declaration.
Source: https://revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty. Rules Mate is not a law firm. Always verify against the live regulator source before acting.