Stamp duty is one of the largest upfront costs of buying an investment property and one of the most underestimated. Most people Google the owner-occupier or first home buyer rate and get a shock when they realise those concessions don't apply to investment purchases. Here's what you actually pay, state by state.
Why investment property stamp duty is higher than you might expect
If you've looked up stamp duty before as a first home buyer or owner-occupier, the figures you saw probably don't apply to you as an investor. A few things work against you:
- No first home buyer exemptions. FHB duty concessions and exemptions apply only to people buying a property to live in. Investment purchases are excluded in every state.
- No owner-occupier concessions. Several states have lower duty rates or threshold concessions for principal place of residence purchases. Investors pay the full standard rate from dollar one.
- Full investor rate applies immediately. There's no phasing in. You pay the standard duty on the full purchase price at the applicable progressive rates.
- It's a capital cost, not an immediate deduction. Stamp duty is added to your cost base for capital gains tax (CGT) purposes when you eventually sell. It does not reduce your taxable income in the year you pay it.
- It must be in your budget before you exchange. Stamp duty is payable at or before settlement. Lenders do not lend it. It must come from genuine savings or usable equity, and you need to know the number before you sign anything.
How stamp duty is calculated in Australia
Stamp duty (also called transfer duty or land transfer duty depending on the state) uses a progressive rate structure. Different percentage rates apply to different bands of the purchase price, similar in concept to income tax brackets. The total duty is the sum across all bands.
Key mechanics to understand:
- Duty is calculated on the purchase price or market value, whichever is higher. For most standard purchases they're the same, but this matters if you buy below market value or if a valuer later assesses the property higher.
- Foreign purchaser surcharges apply on top of standard rates in most states. This article covers Australian resident investors only.
- Rates change. State governments adjust thresholds and rates periodically. Always verify current figures with your state revenue office or conveyancer before exchanging contracts. The figures below are approximate and based on standard investor rates as at May 2026.
NSW: Transfer Duty (Investment Property, Australian Resident)
In New South Wales, stamp duty is officially called "transfer duty." There are no concessions or exemptions for investors. The First Home Buyer duty exemption (for properties up to $800,000) applies only to owner-occupiers buying their first home.
Approximate transfer duty for an investment purchase in NSW:
| Purchase Price | Approx. Stamp Duty |
|---|---|
| $400,000 | $13,490 |
| $500,000 | $17,990 |
| $600,000 | $22,490 |
| $700,000 | $26,990 |
| $800,000 | $31,490 |
Use the NSW Revenue online calculator for exact figures before exchanging. The URL is revenue.nsw.gov.au.
VIC: Land Transfer Duty (Investment Property)
Victoria has the highest stamp duty of any major state for investment property purchases. The principal place of residence (PPR) concession that owner-occupiers receive does not apply to investors, which puts the full rate well above most other states.
Approximate land transfer duty for an investment purchase in VIC:
| Purchase Price | Approx. Stamp Duty |
|---|---|
| $400,000 | $21,970 |
| $500,000 | $27,810 |
| $600,000 | $31,070 |
| $700,000 | $37,070 |
| $800,000 | $43,070 |
The VIC duty on a $500,000 investment property is roughly $10,000 more than the equivalent purchase in QLD. That is a meaningful difference in your upfront capital requirement and your cost base.
no owner-occupier concession
$10,460 more upfront
QLD: Transfer Duty (Investment Property)
Queensland is more investor-friendly than NSW and VIC on stamp duty. The home concession for owner-occupiers does not apply to investment purchases, but the standard rates are lower across most price points.
Approximate transfer duty for an investment purchase in QLD:
| Purchase Price | Approx. Stamp Duty |
|---|---|
| $400,000 | $12,850 |
| $500,000 | $17,350 |
| $600,000 | $21,850 |
| $700,000 | $26,350 |
| $800,000 | $30,850 |
Use the QLD Revenue Office online calculator at qro.qld.gov.au for exact figures.
WA: Stamp Duty (Investment Property)
Western Australia's progressive duty structure is relatively competitive at entry-level price points. The first home owner rate concession for eligible owner-occupiers below the $530,000 threshold does not apply to investment purchases.
Approximate stamp duty for an investment purchase in WA:
| Purchase Price | Approx. Stamp Duty |
|---|---|
| $400,000 | $13,433 |
| $500,000 | $17,765 |
| $600,000 | $22,278 |
| $700,000 | $26,778 |
| $800,000 | $31,278 |
SA: Stamp Duty (Investment Property)
South Australia's stamp duty sits between NSW and VIC at most price points. Unlike some other states, SA does not have a separate investor and owner-occupier rate split at the standard level. The same duty rate applies to all purchases regardless of intended use.
Approximate stamp duty for an investment purchase in SA:
| Purchase Price | Approx. Stamp Duty |
|---|---|
| $400,000 | $19,830 |
| $500,000 | $24,830 |
| $600,000 | $29,830 |
| $700,000 | $34,830 |
Summary comparison: stamp duty by state
To make comparison straightforward, here's stamp duty across all five states at two common investor price points:
| State | At $500,000 | At $700,000 |
|---|---|---|
| NSW | $17,990 | $26,990 |
| VIC | $27,810 | $37,070 |
| QLD | $17,350 | $26,350 |
| WA | $17,765 | $26,778 |
| SA | $24,830 | $34,830 |
VIC stands out as materially more expensive at every price point. At $500,000, a VIC investor pays roughly $10,000 more in stamp duty than a QLD investor buying the same price property. Over a 10-year hold, that $10,000 difference could represent several months of additional cash flow.
Stamp duty is a capital cost, not a tax deduction
This is one of the most misunderstood points about stamp duty for investment property.
You cannot claim stamp duty as an immediate deduction in your tax return in the year you pay it. It is a capital cost of acquiring the asset. What it does instead is get added to your cost base for CGT purposes when you eventually sell.
Here's what that looks like in practice. Say you buy a property in QLD for $500,000:
- Purchase price: $500,000
- Stamp duty: $17,350
- Legal and conveyancing: $2,000
- Buyer's agent fee: $10,000
- Total cost base: $529,350
If you sell for $800,000 several years later, your taxable capital gain is $800,000 minus $529,350 equals $270,650, not $300,000. The stamp duty and acquisition costs reduce your CGT exposure on exit, but they don't help your cash flow on the way in.
The practical implication: stamp duty improves your after-tax outcome on sale, but you still need to fund it upfront from your own capital.
Factor stamp duty into your deposit and buying budget
Most first-time investors budget for the deposit and then get surprised when their broker or conveyancer tells them how much more they need. Here's a realistic cash requirement breakdown for a $500,000 investment property in QLD:
- 20% deposit: $100,000
- Stamp duty: $17,350
- Conveyancing and legal fees: approximately $2,000
- Building and pest inspection: approximately $600
- Buyer's agent fee (flat fee): $10,000
- Total minimum cash to proceed: approximately $129,950
That's nearly $130,000 in cash or usable equity before you own anything. If you're in VIC instead of QLD, add another $10,460 in stamp duty to that total.
Lenders do not lend stamp duty. It is not capitalised into your loan. It must come from genuine savings, equity in another property, or a combination. If you don't have it confirmed before you exchange, you are at risk of being unable to settle.
The practical implication for rentvesting strategy
Stamp duty is one of the reasons I pay close attention to which state a client is buying in, not just the property itself. In high-stamp-duty states like VIC, the entry friction is meaningfully higher. A $500,000 Melbourne investment property costs roughly $27,810 in stamp duty. The same $500,000 purchase in QLD costs $17,350. That $10,460 difference is real money that affects your starting position.
Lower stamp duty states like QLD and WA allow you to get into the market with less upfront capital tied up in transaction costs. Over multiple properties, this compounds. If I'm helping a client who has a $130,000 to $140,000 budget for one interstate investment, the difference between a QLD and VIC entry can mean the difference between getting the deal done or not.
This is one of several reasons why interstate rentvesting, particularly in QLD and WA, has been a practical entry strategy for investors who live in NSW and VIC where local prices make ownership difficult. Lower stamp duty is a structural advantage of those markets that often gets overlooked when people focus only on purchase price and yield.
Important: Stamp duty rates and thresholds change. Verify current rates with your state revenue office or conveyancer before exchanging contracts. The figures in this article are approximate and based on standard investor rates for Australian residents as at May 2026. This article is general information only and not financial or tax advice. Speak to a qualified accountant or financial adviser before making investment decisions.
Sources:
Revenue NSW transfer duty: revenue.nsw.gov.au: Transfer duty
State Revenue Office Victoria stamp duty: sro.vic.gov.au: Land transfer duty
Queensland Revenue Office transfer duty: qro.qld.gov.au: Transfer duty
Revenue WA: wa.gov.au: Transfer duty (WA)
RevenueSA: revenuesa.sa.gov.au: Stamp duties
