Stamp duty, or transfer duty, is usually the largest cost of buying a property after the deposit. For investors it bites harder than for home buyers, because the main concessions, such as first home buyer exemptions and owner-occupier rates, only apply if you live in the property. An investor generally pays the full rate.
What an investor pays in each state
The table shows transfer duty at 2026–27 general rates on an established home bought as an investment for $600,000 and for $900,000. It excludes registration fees, which are a few hundred dollars, and any foreign purchaser surcharge.
| State or territory | $600,000 | $900,000 |
|---|---|---|
| New South Wales | $21,187 | $34,687 |
| Victoria | $31,070 | $49,070 |
| Queensland | $20,025 | $33,525 |
| Western Australia | $22,515 | $37,466 |
| South Australia | $26,830 | $43,330 |
| Tasmania | $22,498 | $35,685 |
| ACT | $15,720 | $31,050 |
| Northern Territory | $29,700 | $44,550 |
At $600,000 the gap between the cheapest place to buy, ACT ($15,720), and the dearest, Victoria ($31,070), is $15,350. That is money you either pay from savings or borrow and pay interest on, and it is not tax deductible.
Why the totals differ so much
- Victoria charges 6% on the slice between $130,000 and $960,000, so mid-priced purchases cost more there than almost anywhere else.
- The ACT has been replacing stamp duty with rates for years, which keeps duty lower on cheaper properties.
- The Northern Territory uses a formula rather than brackets up to $525,000, then a flat 4.95% of the whole price.
- South Australia applies one scale to most buyers, and its top 5.5% rate starts at $500,000.
- NSW adds premium duty of 7% above $3,870,000, which matters only at the top of the market.
Duty as a share of the price
Across the eight states and territories, duty on a $600,000 investment ranges from 2.6% to 5.2% of the price. Because rates rise in steps, duty climbs faster than the price: on $900,000 it is 3.5% to 5.5%. On a 20% deposit of $120,000 on a $600,000 purchase, duty adds 13.1% to 25.9% to the cash you need up front.
Foreign buyers pay more
Most states add a surcharge for foreign purchasers of residential property, on top of the duty above, of between 7% and 9% of the price. The ACT and the Northern Territory don't charge a duty surcharge, although the ACT adds a land tax surcharge for foreign owners. The Commonwealth has also banned foreign buyers from purchasing established homes until mid-2029, so most foreign investment is now in new builds.
How duty affects your returns
Stamp duty on an investment property isn't deductible against rent. It is added to the property's cost base, which reduces the capital gain when you sell. Until then it is money not earning anything, so it pushes out the time it takes the investment to break even. When comparing cities, put duty alongside yield, land tax and expected growth rather than judging on price alone.
To see duty, land tax, cash flow and yield together for a specific purchase, use the residential investment calculator. For commercial property, which has different rules in several states, use the commercial stamp duty calculator.