In 2026, NSW buyers typically pay higher stamp duty than their Victorian counterparts on properties under $1.5 million, but Victoria's additional surcharges and conveyancing fees can close that gap quickly. Understanding the full cost breakdown — including professional fees, disbursements, and government levies — is essential before you sign a contract in either state.
Why stamp duty still dominates your upfront costs
Stamp duty (formally called transfer duty) remains the single largest upfront cost for most Australian homebuyers, often eclipsing legal and conveyancing fees by a factor of ten or more. Despite years of reform debate, both New South Wales and Victoria retain compulsory stamp duty for the vast majority of residential purchases in 2026.
According to the Australian Bureau of Statistics, the national median dwelling price reached $820,000 in late 2025, meaning the average buyer in either state is still facing a five-figure stamp duty bill before they even unpack a single box. That figure underscores why comparing costs between NSW and VIC isn't just academic — on an $800,000 purchase, the difference between the two states' duty rates can run to several thousand dollars.
If you're weighing up where to buy or simply want to understand what you'll owe, this guide breaks down every material cost you're likely to encounter, from duty thresholds to conveyancer invoices.
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NSW stamp duty: rates and thresholds in 2026
New South Wales uses a tiered transfer duty system administered by Revenue NSW. Rates in 2026 are as follows for standard residential purchases:
- $0–$16,000: $1.25 per $100 - $16,001–$35,000: $200 plus $1.50 per $100 over $16,000 - $35,001–$93,000: $485 plus $1.75 per $100 over $35,000 - $93,001–$351,000: $1,500 plus $3.50 per $100 over $93,000 - $351,001–$1,168,000: $10,530 plus $4.50 per $100 over $351,000 - Over $1,168,001: $47,295 plus $5.50 per $100 over $1,168,000
For a median Sydney purchase of approximately $1,150,000, the stamp duty liability sits around $45,900. First home buyers can access a full exemption on new homes valued up to $800,000 and concessions up to $1,000,000 under the First Home Buyer Assistance Scheme.
NSW also introduced a land tax opt-in for first home buyers as an alternative to upfront stamp duty. In 2026, eligible purchasers can elect to pay an annual land tax of $400 plus 0.3% of land value rather than stamp duty — a useful cashflow tool, though it carries long-term obligations.
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Victorian stamp duty: rates, surcharges, and what's different
Victoria's duty structure, administered by the State Revenue Office (SRO), broadly mirrors NSW's tiered approach but diverges in several important ways. The standard rate for dutiable values over $960,000 is 5.5% — comparable to NSW — but Victoria layers on additional charges that can catch buyers off guard.
Key differences include:
- Foreign purchaser additional duty: 8% surcharge on the dutiable value for foreign nationals (unchanged in 2026) - Absentee owner surcharge: 4% annual land tax for absentee owners, up from 2% in prior years - Metropolitan planning levy: Applies to development projects exceeding $1,197,000 in Melbourne's metropolitan area
Victoria did expand its First Home Buyer Duty Exemption in 2025, offering a full duty exemption on properties up to $600,000 and a concession sliding to $750,000. This threshold lags behind NSW's equivalent, meaning Victorian first home buyers purchasing near the state's median face a narrower relief window.
On a $750,000 Melbourne purchase with no concessions, a standard buyer owes approximately $40,070 in stamp duty — somewhat less than an equivalent Sydney purchase, though metropolitan Melbourne's land values mean many buyers exceed this benchmark.
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Conveyancing fees: NSW vs VIC side-by-side
Beyond government duties, you'll engage a licensed conveyancer or solicitor to handle the legal transfer. Fees vary by property type, complexity, and whether you choose a specialist conveyancer or a full-service law firm. Check out our cost guide for a deeper breakdown of what's included.
| Service / Property Type | NSW (2026 estimate) | VIC (2026 estimate) | Notes | |---|---|---|---| | Standard residential purchase (house) | $1,200 – $2,200 | $1,100 – $2,000 | Disbursements extra | | Apartment / strata purchase | $1,400 – $2,500 | $1,300 – $2,300 | Strata searches add $300–$600 | | Off-the-plan purchase | $1,800 – $3,000 | $1,700 – $2,800 | Greater complexity, more review time | | Government search fees (disbursements) | $400 – $900 | $350 – $800 | Title, council, water, zoning searches | | PEXA electronic settlement fee | ~$115 | ~$115 | Standard platform fee, both states |Prices above reflect typical market rates sourced from surveyed practices; individual quotes may vary. Online or fixed-fee conveyancers often sit at the lower end of these ranges. For personalised comparisons, see our best conveyancers in Sydney listings.
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Hidden fees and disbursements to watch for
Neither stamp duty calculators nor conveyancer websites always make disbursements obvious. These are third-party costs your conveyancer pays on your behalf and passes through. In NSW, typical disbursements include a title search ($35–$55), council rates certificate ($80–$150), Section 10.7 planning certificate ($133 for the standard version), and ASIC company searches where applicable.
In Victoria, the equivalent costs include a land title search, council and water rates certificates, and a section 32 vendor statement review — the latter being a Victorian-specific disclosure document that NSW buyers don't encounter. Section 32 review is normally included in VIC conveyancer quotes, but confirm this upfront.
According to the Australian Taxation Office's 2025 property transaction data, disbursements and ancillary legal costs added an average of $680 to conveyancing transactions nationally — a figure often overlooked when buyers budget solely around duty and professional fees.
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First home buyer concessions compared
Both states offer meaningful relief for eligible first home buyers, but the structure differs.
NSW: Stamp duty exemption up to $800,000 (new homes), concession to $1,000,000. Land tax opt-in available as an alternative. First Home Owner Grant of $10,000 for new homes under $600,000. Victoria: Stamp duty exemption up to $600,000, concession to $750,000. First Home Owner Grant of $10,000 for regional Victoria only (metro grant was discontinued). Principal place of residence concession available to all owner-occupiers.Victorian buyers purchasing in Melbourne's inner and middle suburbs frequently find themselves above the $750,000 concession threshold, meaning many first home buyers in VIC receive no duty relief at all. NSW buyers have a slightly more generous ceiling, though Sydney's median prices mean many still fall outside it.
For a full comparison of how conveyancers structure their first home buyer packages, see our methodology page.
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Choosing a conveyancer: what to look for in 2026
Regardless of state, your conveyancer should be licensed (or a qualified solicitor), carry professional indemnity insurance, and use the PEXA electronic platform for settlement. Ask each prospective provider:
1. Is your quote fixed-fee or time-based? 2. Are disbursements itemised and capped? 3. Do you have experience with [off-the-plan / strata / rural] properties? 4. What's your turnaround time for contract review?
Fixed-fee models are now the industry norm in both NSW and VIC, particularly among online-focused providers. Be cautious of quotes that appear very low but list disbursements as "estimated" without a cap — these can balloon.
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FAQ
Q: Is stamp duty the same as transfer duty? A: Yes. "Transfer duty" is the technical legal term used by state revenue authorities; "stamp duty" is the common name still widely used by buyers, agents, and the media. They refer to the same tax. Q: Can I negotiate conveyancing fees in NSW or VIC? A: Professional fees are not regulated in either state, so negotiation is possible, particularly on straightforward purchases. However, the more productive approach is to obtain three to four fixed-fee quotes and compare inclusions — a cheaper quote that excludes strata or title searches isn't necessarily better value. Q: How long does settlement take in each state? A: Standard settlement periods are typically 30–90 days in both NSW and VIC, with 42 days (six weeks) being the most common contractual period. Off-the-plan purchases can involve settlements 12–24 months out from contract signing. Q: Do I need a conveyancer or a solicitor? A: For straightforward residential purchases, a licensed conveyancer is entirely adequate and often more cost-effective than a solicitor. For complex transactions — unusual easements, deceased estate purchases, commercial elements — engaging a property solicitor is worthwhile. Both are fully qualified to act on your behalf in NSW and VIC.---
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