Stamp duty is one of the biggest upfront costs for first home buyers. In 2026, the three most populous states – New South Wales, Victoria and Queensland – all offer concessions that can reduce or eliminate this tax for eligible purchasers. But the thresholds, eligibility rules and final savings vary significantly.
This guide compares the stamp duty concessions available in NSW, VIC and QLD for first home buyers in 2026. We will look at who qualifies, how much you can save, and how recent federal changes to the First Home Guarantee interact with state concessions. We will also touch on broader borrowing conditions including the RBA cash rate at 4.35%, lowest variable rates around 5.69%, the APRA-imposed 3% serviceability buffer, and the new 6x DTI cap introduced in February 2026.
Whether you are aiming for a $600,000 unit or a $1.5 million house, understanding these numbers is critical.
NSW First Home Buyer Assistance Scheme – Nil duty up to $800,000
New South Wales offers the most generous nil-duty threshold of the three states. Under the First Home Buyer Assistance Scheme (FHBAS), eligible buyers pay no stamp duty on properties valued up to $800,000. A concessional rate applies for homes between $800,000 and $1,000,000.
• Nil duty threshold: $0 – $800,000
• Concessional rate: $800,001 – $1,000,000
• Standard rate applies above: $1,000,000
To qualify, you must meet the following criteria:
- • At least one buyer must be a first home buyer (never owned residential property in Australia before).
- • The property must be your principal place of residence, occupied within 12 months of settlement.
- • The purchase must be for an established home, a new home, or a vacant block of land (land only threshold is lower, at $350,000 for nil duty).
- • There is no income cap from 1 July 2023 onward – this was removed permanently.
Savings example: For a $750,000 established home in Sydney, stamp duty without concession would be approximately $29,000. With the full exemption, you pay $0. That is a direct saving of nearly $30,000.
The scheme applies only to properties valued at or below $1,000,000. Above that, no concession is available in NSW.
Interaction with the First Home Guarantee (FHBG): Since July 2026, the FHBG has no income cap and requires only a 5% deposit. The price cap for Sydney under the FHBG is $1.5 million. For a buyer using the FHBG on a $900,000 property, they would receive the concessional rate under FHBAS (paying reduced duty) and avoid Lenders Mortgage Insurance (LMI) through the guarantee.
Victoria First Home Buyer Duty Exemption – Nil duty up to $600,000
Victoria’s First Home Buyer Duty Exemption and Concession offers a lower nil-duty ceiling than NSW but still provides meaningful relief for buyers in Melbourne and regional areas.
• Nil duty threshold: $0 – $600,000
• Concessional rate: $600,001 – $750,000
• Standard rate applies above: $750,000
Eligibility requirements:
- • Buyers must be first home buyers (never owned a home anywhere in the world, with some exceptions for hardship).
- • The property must be used as your principal residence within 12 months of settlement.
- • No income cap applies for the exemption – this was removed in the 2024 Victorian State Budget.
- • The property can be an established home, new home, or vacant land (land thresholds apply: nil duty up to $400,000, concession up to $500,000).
Savings example: For a $580,000 unit in Melbourne, full stamp duty would be around $22,000. With the exemption you pay $0. For a $700,000 townhouse, you would pay the concessional rate – approximately $10,000 instead of $35,000.
Victoria also offers a stamp duty concession for off-the-plan purchases (the Off-the-Plan Duty Concession), which can reduce duty on new builds further. However, that is a separate scheme and not part of the primary first home buyer exemption.
Note on the $950,000 FHBG cap: From July 2026, the First Home Guarantee price cap for Melbourne is $950,000. A buyer purchasing a $920,000 home using the FHBG would have a 5% deposit and pay no LMI, but they would not be eligible for any Victorian stamp duty concession because the property value exceeds $750,000. They would pay full stamp duty – roughly $50,000.
Queensland First Home Concession – Nil duty up to $700,000
Queensland’s First Home Concession provides nil duty for properties up to $700,000, with a sliding concession up to $800,000. This sits between NSW and VIC in terms of threshold generosity.
• Nil duty threshold: $0 – $700,000
• Concessional rate: $700,001 – $800,000
• Standard rate applies above: $800,000
Eligibility conditions:
- • All buyers must be first home buyers (never owned residential property in Australia before).
- • The property must be your principal place of residence, occupied within one year of settlement.
- • There is no income cap – Queensland removed income limits in 2024.
- • The property can be an existing home, a new home, or vacant land. For vacant land, the nil-duty threshold is $350,000 and concessional up to $500,000.
Savings example: If you buy a $680,000 house in Brisbane, full stamp duty would be about $24,000. With the concession you pay $0. A $750,000 home would attract a reduced duty of approximately $6,500 rather than $30,000.
Queensland also offers a separate First Home Owner Grant of $15,000 for new homes valued up to $750,000 (or up to $1 million for regional properties). That grant is in addition to the stamp duty concession.
FHBG interaction: The First Home Guarantee price cap for Brisbane is $1 million from July 2026. A buyer who is eligible for both the FHBG and the Queensland stamp duty concession on a property priced at $700,000 would have a 5% deposit, zero LMI, and zero stamp duty. That combination is among the most favourable in the country.
Key differences between NSW, VIC and QLD concessions
To compare the three states side by side (without a table), consider these bullet points:
• Nil-duty cap: NSW $800,000 > QLD $700,000 > VIC $600,000
• Concessional ceiling: NSW $1,000,000 > QLD $800,000 > VIC $750,000
• Income test: All three states have removed income caps – no limit for eligibility.
• Property type: All three allow established homes, new homes and vacant land (land thresholds differ).
• FHBG price cap (2026): Sydney $1.5M > Brisbane $1M > Melbourne $950k
• Additional grants: QLD offers $15,000 First Home Owner Grant for new homes; NSW and VIC have no state-level FHOG for established homes (VIC offers $10,000 for regional new homes, NSW $10,000 for new homes under $600k).
In terms of pure stamp duty relief, NSW provides the highest nil-duty threshold, but property prices in Sydney are also the highest. A buyer with a budget of $750,000 could buy a home in any state, but the stamp duty saved is greatest in NSW (up to $29,000) compared to Victoria ($0 at that price if buying in VIC? Actually $750k is above VIC's nil threshold; they'd pay concessional duty). So the "best deal" depends on property price and location.
For a property priced at $650,000, a buyer in NSW pays nil duty, in QLD pays nil duty, but in VIC pays nil duty only up to $600,000 – at $650,000 they would pay a reduced duty (about $6,000). So for that price, NSW and QLD are better.
For a property at $780,000, NSW gives concessional rate, QLD gives nil rate (since $780k is still within QLD's nil threshold? Actually QLD nil up to $700k – so $780k falls into concessional, not nil). Wait: QLD nil up to $700k, so $780k is in the concessional band. So for $780k, NSW: concessional (full duty around $37k, reduced to $15k); VIC: standard duty (full $45k); QLD: concessional ($8k). QLD would have the smallest duty at that price.
Other costs and borrowing conditions in 2026
Beyond stamp duty, first home buyers face numerous upfront expenses. These include conveyancing fees ($1,000–$2,500), building and pest inspections ($400–$800), lenders mortgage insurance if deposit is below 20% (avoided through FHBG or paying LMI), and moving costs.
The wider lending environment in 2026 includes:
• RBA cash rate: 4.35% (unchanged since late 2025).
• Lowest variable rates: Around 5.69% for well-qualified borrowers.
• APRA serviceability buffer: Still 3% above the loan rate, meaning lenders assess ability to repay at around 8.69% for a 5.69% variable loan.
• Debt-to-income (DTI) cap: From February 2026, APRA requires lenders to cap new lending at 6x borrower income. This means if you earn $120,000, your maximum loan size is $720,000 (6x income). This directly affects how much you can borrow, and therefore what price property you can target.
For example, a first home buyer in Queensland earning $100,000 could borrow up to $600,000. With a 5% deposit under FHBG ($31,579), they could afford a property up to $631,579. Stamp duty on that amount in QLD would be around $1,500 (concessional rate). Combined with a $15,000 FHOG if buying a new home, the net cash required could be as low as $23,000.
How the 2026 First Home Guarantee changes affect stamp duty
The First Home Guarantee (FHBG) was updated from 1 July 2026. Key changes:
• No income cap – previously applicants had to earn under $125,000 (singles) or $200,000 (couples). Now any first home buyer can apply.
• 5% minimum deposit – the government guarantees up to 15% of the property value, allowing you to avoid LMI.
• Price caps increased: Sydney $1.5M, Melbourne $950k, Brisbane $1M, Perth $850k, Adelaide $750k, Canberra $850k, Hobart $750k, Darwin $600k (regional caps also updated).
• Places: 50,000 spots per year, administered by Housing Australia.
The FHBG does not directly reduce stamp duty, but it enables buyers to purchase with a smaller deposit, freeing up cash that can be used to cover stamp duty and other costs. In states where stamp duty is exempt or concessional, the combination is particularly powerful.
For instance, a buyer in Sydney with a $120,000 deposit (5% on a $800,000 home) could use the FHBG to avoid LMI, and pay zero stamp duty thanks to NSW’s concession. They would need roughly $8,000–10,000 for conveyancing, inspections and minor costs – a total of ~$130,000 cash.
In contrast, a buyer in Melbourne buying at $950,000 (FHBG cap) would pay full stamp duty of nearly $53,000 (since $950k > VIC's concessional ceiling of $750k). They would need a 5% deposit ($47,500) plus stamp duty and other costs – total cash ~$110,000. That is a heavier burden.
Frequently asked questions
1. I am a first home buyer in NSW. Do I have to pay stamp duty on a property worth $820,000?
No. The nil-duty threshold in NSW is up to $800,000 (inclusive). At $820,000, you are in the concessional band. You will pay reduced stamp duty, not full duty. The exact amount depends on the property value and land usage, but typically it would be a few thousand dollars rather than the full duty of approximately $33,000.
2. What is the maximum property price I can buy in Queensland to get the full stamp duty exemption?
In Queensland, the nil
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