Do first home buyers pay stamp duty in NSW?

Not up to $800,000 as a purchase price. Between $800,000 and $1 million there's a sliding discount, and above $1 million you pay the full amount. Check the current table before you rely on it, because the thresholds change.

Can I borrow the stamp duty as part of my home loan?

Generally no. Stamp duty is a purchase cost that comes from your own funds on top of the deposit, so it changes how much you need to have saved.

Do the thresholds apply to the loan amount or the purchase price?

The purchase price. The concession is based on what you're paying for the property, not how much you're borrowing.

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Straight Answers · First home

Do first home buyers still pay stamp duty?

Bayley Clarke · Mortgage broker on the road · Last checked 3 September 2026 · 3 min read

The short answer

Mostly no, depending on what state you're in and what purchase price range you're trying to buy at.

Every state publishes a purchase price table that shows exactly the price point where you start paying stamp duty, even as a first home buyer. Below the line it's nothing, above it there's usually a sliding discount, and past the top of the range you're paying the full amount like anyone else.

The one minute version. The rest of this page is the detail underneath it.

How the thresholds work

Most states will have their published purchase price tables where it shows you exactly at what price point you will need to start paying stamp duty, even as a first home buyer. It's not a yes or no. It's a line on a price scale, and where you land on it decides what you pay.

As a good example, I'm in New South Wales. Up to $800,000 as a purchase price, as a first home buyer you will not pay a single dollar of stamp duty. Between $800,000 and a million, you continue to get a discount on stamp duty, all the way up until that million point. Above that, you're paying full stamp duty amounts.

So for you that means the first question isn't 'am I exempt', it's 'what am I likely to pay for a place, and where does that sit on my state's table'. A $50k difference in purchase price can be the difference between zero stamp duty and a five figure bill.

Every state draws the line somewhere different

Every state is different as far as when their thresholds kick in for when a first home buyer needs to start paying stamp duty. Some states run a full exemption then a sliding concession. Some have a flat threshold. Some treat new builds and established homes differently, and a couple treat vacant land on its own scale again.

The tables move, too. State budgets adjust the thresholds every few years, usually upward as prices climb, and sometimes a scheme gets added or retired. Which is why I won't give you a number for a state I'm not standing in. The right move is to check the current table for your state on the day you're making offers, not the one you remember from a mate's purchase two years ago.

Stamp duty is a cost of purchase, and it has to be funded

There are still a lot of waivers and discounts out there for first home buyers. It's just checking what state you're in and when those thresholds actually kick in. When you do land above the line, the stamp duty has to come from your own funds, on top of the deposit. The bank won't lend it to you as part of a first home loan.

That's the number I want on the table early, because it changes what deposit you actually need. Someone with $60k saved for a $700k purchase might be sweet in one state and $20k short in another, purely on stamp duty. Better to know that at the first call than at the conveyancer's desk.

The honest bit: paying some stamp duty isn't always the wrong move

Buyers sometimes anchor so hard on staying under the threshold that they pass on the right property to save the duty. It's a real cost, and it hurts. But if the place above the line is the one that gets you into the market two or three years sooner, the property only needs to grow a few percent and the stamp duty is paid for.

So treat the threshold as a number in the equation, not the whole equation. I'll show you both versions of the sum on a call.

Want to know what you'd actually pay in your state?

A 30 minute call. Your likely purchase price against your state's current table, what that means for the deposit you need, and whether the numbers stack up. Nothing on your file.

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Next question

Is it worth living in the property first to get the stamp duty exemption?

The exemption usually comes with a live-in condition. Whether that's worth it is a numbers game.