ACT Stamp Duty 2026-27: Rates, Home Buyer Concession (No Income Test) & No Foreign Surcharge

ACT Stamp Duty 2026-27: Rates, Home Buyer Concession (No Income Test) & No Foreign Surcharge HEHomeLoanAI Editorial·4 July 2026 ACT stamp duty 2026-27: the territory with two rate scales, no income test, and no foreign surcharge The Australian Capital Territory operates a distinct stamp duty system that differs from every state. It uses two rate scales — one concessional for owner-occupiers and one for investors. It offers first home buyers a duty exemption up to $1,020,000. And from 1 July 2026, the income test for that concession is removed. Perhaps most notably for foreign buyers: the ACT imposes no foreign purchaser stamp duty surcharge. Here is how the 2026-27 numbers work. 2026-27 ACT conveyance duty rates The ACT applies two separate rate schedules depending on whether the property is your principal place of residence (owner-occupier) or an investment. The owner-occupier rates are systematically lower: Owner-occupier (concessional) scale: These rates are lower than the investor scale at every bracket Investor (non-concessional) scale: Higher rates apply, reflecting the policy choice to favour home ownership over investment The ACT Revenue Office publishes the full tables on its website, updated annually. The precise dollar amounts for each bracket are indexed, but the structural principle is consistent: owner-occupiers pay meaningfully less than investors for the same property value. This dual-scale system is unique in Australia. No other jurisdiction differentiates between owner-occupier and investor rates in the transfer duty schedule itself — though several states achieve a similar outcome through first-home concessions, grants, and land tax differentials. 2026 ACT conveyance duty rates (updated) The ACT uses a graduated schedule with rates increasing by bracket. Here are the established brackets: The concessional (owner-occupier) scale applies to buyers who will occupy the property as their principal place of residence The general (investor) scale applies to all other purchasers Rates are structured in graduated brackets similar to income tax — the higher rate applies only to the portion of value in each bracket For a $750,000 Canberra property under the owner-occupier concessional scale, the approximate duty is $10,000 to $15,000 — significantly lower than the equivalent purchase in Sydney (approximately $36,000) or Melbourne (approximately $43,000). At $1,000,000 under the investor scale, duty is materially higher. First home buyer: Home Buyer Concession Scheme (HBCS) The ACT's first home buyer scheme is among the most generous in the country. The key parameters for 2026-27: Dutiable value up to $1,020,000: full conveyance duty exemption Dutiable value above $1,020,000: partial concession, phasing out on a sliding scale From 1 July 2026: the income test is removed — there is no longer any income cap or income-based eligibility restriction The removal of the income test is significant. Previously, the HBCS was subject to income thresholds that excluded higher-income first home buyers. From July 2026, a first home buyer earning $200,000 qualifies on exactly the same terms as one earning $60,000 — provided the property's dutiable value falls within the scheme's limits. This makes the ACT one of only two jurisdictions (alongside Queensland for new homes) where first home buyers can purchase a property valued at over $1,000,000 and still receive a full stamp duty exemption — with no income restriction. No First Home Owner Grant The ACT abolished its First Home Owner Grant in July 2019 and has not reintroduced it. There is no FHOG available in the ACT in 2026-27. First home buyer support is delivered entirely through the HBCS stamp duty concession. No foreign purchaser surcharge on stamp duty The ACT is unique among Australian jurisdictions in that it does not levy a foreign purchaser surcharge on conveyance duty. Foreign buyers purchasing residential property in Canberra pay the same stamp duty as Australian citizens and permanent residents. However, the ACT does impose an annual foreign land tax surcharge of 0.75% on residential land owned by foreign persons. This is a separate, ongoing cost — not a one-time transaction duty. The 0.75% annual surcharge on land value is significantly lower than the one-time foreign surcharges in other states (NSW 9%, VIC 8%, QLD 8%, WA 7%, SA 7%, TAS 8%), but it recurs each year. ACT's long-term stamp duty phase-out The ACT has been gradually replacing conveyance duty with a broad-based land tax since 2012, as part of a 20-year tax reform program. Each year, conveyance duty rates are incrementally reduced, and general rates (land tax) are increased. This shift is ongoing and affects every Canberra property owner through their annual rates notice. For buyers in 2026-27, the net effect is that stamp duty is lower than it would have been a decade ago, but ongoing land tax obligations are higher. Data sources All ACT conveyance duty rates, HBCS thresholds, income test removal, FHOG abolition, and foreign surcharge details above are verified against the ACT Revenue Office as at July 2026. The income test removal for the HBCS took effect 1 July 2026. ACT general rates (land tax) are separate from conveyance duty and are administered under a different legislative framework. Frequently Asked Questions Q: How do the two rate scales (owner-occupier vs investor) work? A: If you intend to live in the property as your principal place of residence, you are assessed under the lower concessional scale. If the property is an investment, you pay the higher general scale. You must declare your intended use at the time of conveyance. If you change use (e.g., move out and rent the property) within a specified period, you may be required to pay the difference. Q: With the income test removed, does everyone qualify for the HBCS? A: You must still meet the other eligibility requirements: be a first home buyer (neither you nor your spouse/partner has previously owned residential property), the property must have a dutiable value at or under the threshold ($1,020,000 for full exemption), and you must occupy the property as your principal place of residence for at least 12 months. The removal of the income test means your household income is no longer a factor. Q: If there is no foreign stamp duty surcharge, why does ACT charge a land tax surcharge? A: The ACT has chosen to tax foreign ownership through its annual land tax system rather than through a one-time transaction duty. This means foreign buyers do not face an upfront stamp duty surcharge at purchase, but they pay an additional 0.75% per year on the land value of residential property. For a property held for many years, the cumulative cost may approach or exceed the one-time surcharge in other jurisdictions. Q: What is the stamp duty phase-out, and does it affect me as a buyer in 2026-27? A: The ACT is replacing stamp duty with annual land tax over a 20-year transition (2012–2032). Each year, stamp duty rates are slightly lower, and general rates (land tax) are slightly higher. As a 2026-27 buyer, you benefit from lower upfront stamp duty than in earlier years, but you will pay higher ongoing land tax than owners who bought before the transition. This is a structural policy choice that shifts the tax burden from transaction to ownership. Next steps The ACT's unique combination of dual rate scales, a generous first-home concession with no income test, and no foreign stamp duty surcharge makes it a outlier in the Australian property tax landscape. An Arrivau licensed adviser can calculate your exact duty under the correct scale (owner-occupier vs investor) and model the total cost of ownership including the long-term impact of the stamp-duty-to-land-tax transition. An adviser will respond within one business day. Disclaimer: This article provides general information only and does not constitute financial, legal, or tax advice. ACT duty rates, thresholds, and the stamp duty phase-out trajectory may change. Always verify current rules with the ACT Revenue Office or a qualified professional. #stamp-duty#act#first-home-buyer#2026-27 Not sure what rate you'd get? Ask the AI — free, unbiased, and no sign-up required. It knows current Australian lending rules and can run the numbers for you. 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