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Stamp duty in NSW: the $800k first-home threshold

In NSW, first home buyers purchasing a property up to $800,000 pay zero stamp duty. Between $800,000 and $1,000,000, the concession phases out. Above $1,000,000, standard stamp duty applies. This concession is one of the most valuable government benefits available to NSW first home buyers and should be central to your purchase planning.

The exact thresholds

  • Up to $800,000: nil stamp duty (full exemption)
  • $800,001 to $1,000,000: concessional rate, tapering from zero to full duty
  • Above $1,000,000: full standard rates

On an $800,000 purchase, you save approximately $31,000 in stamp duty. On a $900,000 purchase, you save approximately $18,000. On a $1m purchase, you pay full duty (~$40,000). That $200k property-price-increase costs you $40k + reduced concession = roughly $58k in additional cash-at-settlement.

Who qualifies

  • First home buyer in Australia (you and your spouse have never owned residential property)
  • Australian citizen or permanent resident, or eligible spouse of one
  • Owner-occupier intent: you must move in within 12 months and reside for 6 months continuously
  • The property must be residential

Investment properties do not qualify. Properties held via trust do not qualify unless trustee is the buyer directly.

The “just over $800k” trap

Because the concession tapers, the effective cost of going from $799,999 to $800,001 is roughly $500 of additional duty. But the cost of going from $799,999 to $900,000 is closer to $15,000 of duty (plus the $100k of additional price). Many buyers fixate on the $800k line and miss that the $800k-$1m band still offers partial relief.

The rational rule: if the property genuinely meets your requirements, do not reject it at $830k or $870k because it is “over the threshold”. The concession still works meaningfully up to $980k.

Stacking with other schemes

NSW first home buyers can combine:

  • Stamp duty concession (this article)
  • First Home Guarantee (5% deposit, no LMI)
  • FHOG ($10k for new builds up to $750k)
  • First Home Super Saver Scheme (withdraw super contributions for deposit)

The combined package on an $750k new build can be:

  • Stamp duty saved: $28k
  • FHOG: $10k
  • FHG: saves $15k-$25k LMI
  • FHSSS: accesses $40k-$60k of super contributions

Total benefit: $70k-$120k. This is why buying new at $750k is so heavily incentivised in NSW.

The catch

Off-the-plan or new-build purchases in Sydney at $750k are increasingly small 1-bedroom apartments in outer suburbs. You are often trading concession dollars for a smaller property in a less convenient location. Before taking the full package on a new build, check whether an established property at $830k (where only the stamp duty concession applies) delivers a better long-term outcome. For many buyers, it does.

The $3k/month rule of thumb

Every month you delay buying while waiting to accumulate a larger deposit costs approximately $3,000-$6,000 in Sydney’s longer-term price appreciation. The stamp duty concession makes the decision to buy now at $800k meaningfully cheaper than buying at $900k in 18 months. Run your own numbers against your saving rate.