Stamp duty on investment property in Australia: state-by-state guide

Stamp duty is one of the largest upfront costs when you buy an investment property, yet it varies dramatically depending on which state you purchase in. This guide covers what you will actually pay, how rates differ across Australia, and a few details that can save you real money if you plan ahead.

What is stamp duty?

Stamp duty (also called transfer duty) is a state government tax you pay when you purchase property. It is calculated as a percentage of the property's purchase price or market value, whichever is higher. Each state and territory in Australia sets its own rates and thresholds, which is why the same property can cost tens of thousands more in one state than another.

Stamp duty is a one-off cost, paid at settlement. Unlike land tax or council rates, you pay it once and never again (unless you sell and buy another property). Your conveyancer or solicitor handles the payment as part of the settlement process, and the amount is usually due within 30 days of the contract becoming unconditional.

How much stamp duty will you pay?

The amount depends on three things: the state the property is in, the purchase price, and your buyer type or ownership structure. Foreign buyers pay additional surcharges on top of the standard rates.

Here is what an Australian resident investor would pay on a $700,000 property in each state and territory, based on approximate 2025-26 rates:

Approximate figures for an Australian resident purchasing a $700,000 established property as an investment. Rates are subject to change. Verify current rates with your state revenue office.

Victoria stands out as the most expensive state for stamp duty. On a $700,000 purchase, you would pay roughly $37,100, more than double what Queensland charges for the same property value. That difference alone can shift the first-year return on an investment by a full percentage point.

Investor rates vs owner-occupier rates

In most states, investors and owner-occupiers pay exactly the same stamp duty rate. There is no surcharge simply because you plan to rent the property out rather than live in it.

Victoria is the main exception. Properties valued above $2 million attract a premium duty rate, and this rate is more commonly triggered by investment purchases in high-value suburbs. Outside of that threshold, Victorian investors pay the same rate as owner-occupiers.

The real cost difference comes for foreign buyers. Every state and territory (except the Northern Territory) charges an additional surcharge on top of standard duty for purchasers who are not Australian citizens or permanent residents. These surcharges are substantial, typically 7% to 9% of the purchase price.

First home buyer concessions

First home buyer (FHB) stamp duty concessions do not apply to investment properties. Full stop. These concessions are reserved for buyers purchasing a home they intend to live in as their principal place of residence.

If you are a first home buyer considering an investment property, you will pay the standard rate with no discount. The specific thresholds and concession amounts vary by state (for example, NSW offers a full exemption on properties up to $800,000 for owner-occupiers), but none of these benefits extend to investment purchases.

This is worth factoring into your decision if you are choosing between buying your first home or buying an investment property first. The stamp duty saving on an owner-occupied purchase can be $20,000 or more, which changes the maths considerably.

Is stamp duty tax deductible?

No. Stamp duty is not an ongoing expense and cannot be claimed as a tax deduction against rental income. The ATO treats it as a capital cost associated with acquiring the property, not an operating expense of holding it.

However, stamp duty is added to the property's cost base for capital gains tax (CGT) purposes. When you eventually sell the property, your capital gain is calculated as the sale price minus the cost base. Because stamp duty increases that cost base, it reduces the taxable gain and therefore the CGT you owe.

This matters more than most investors realise. On a property held for 15 years that has doubled in value, $30,000 of stamp duty in the cost base could save $7,000 or more in CGT at the point of sale (assuming the 50% discount and a 37% marginal rate). It is not an immediate benefit, but it is a real one.

Off-the-plan concessions

Some states offer stamp duty concessions for off-the-plan purchases. The most significant concessions are in Victoria and New South Wales, where buyers can pay duty on the land value only rather than the completed value of the building.

For an apartment purchased off the plan at $600,000 where the land component is valued at $250,000, you would pay duty on $250,000 instead of $600,000. In NSW, that could reduce your stamp duty bill by $15,000 or more. The concession applies to both investors and owner-occupiers in most cases, though the rules have changed several times in recent years and eligibility depends on the contract date.

Queensland and Western Australia also offer off-the-plan concessions, though they are generally smaller in value. Check the specific rules for your state before relying on this saving in your purchase budget.

Foreign buyer surcharges

Foreign buyers (anyone who is not an Australian citizen or permanent resident) pay an additional stamp duty surcharge on top of the standard rate. These surcharges are charged as a flat percentage of the purchase price and apply in every jurisdiction except the Northern Territory.

Surcharges are in addition to the standard stamp duty rate. Rates as at 2025-26 financial year. Subject to change.

On a $700,000 property in NSW, a foreign buyer would pay roughly $26,700 in standard duty plus an additional $63,000 surcharge (9% of $700,000), bringing the total stamp duty bill to nearly $90,000. This is a significant cost that makes some markets unviable for non-resident investors.

How ProfitPie calculates stamp duty

ProfitPie calculates stamp duty automatically based on the property's state, purchase price, and buyer type. The calculation uses current rates for each jurisdiction and includes foreign buyer surcharges where applicable.

The result feeds directly into your total acquisition cost, so you can see the true amount of capital required to settle. From there, stamp duty is included in the cost base for CGT calculations and factored into the 30-year cash flow projection. If you are comparing properties across different states, the stamp duty difference shows up clearly in the first-year return and total outlay figures.

For buyers agents and professional advisers, ProfitPie generates detailed acquisition cost breakdowns that include stamp duty alongside legal fees, inspection costs, and loan establishment charges.

Common questions