Stamp duty vs land tax in 2027. The state-by-state position.

The shift from upfront stamp duty to ongoing land tax has been the most active area of state property tax reform since 2023. Each state has taken a different path. The 2027 position differs substantially across NSW, VIC, ACT, QLD, WA, and SA.

For buyers, the actual stamp duty payable on a 2027 purchase depends heavily on which state, which property value bracket, and which (if any) reform pathway has been chosen.

This post is the 2027 state-by-state position.

NSW: First Home Buyer Choice plus partial reform

NSW had the most contested property tax reform debate of the past five years. The 2023 First Home Buyer Choice scheme (allowing first home buyers under a price threshold to choose between stamp duty and annual property tax) was repealed in 2023 after a change of government, then partially reinstated in modified form in 2025.

2027 NSW position

For first home buyers:

• Stamp duty exemption for properties up to $800,000
• Stamp duty concession (sliding) for properties $800,000 to $1,000,000
• Full stamp duty for properties above $1,000,000

For other buyers:

• Standard stamp duty rates apply
• No annual property tax option (the modified scheme was structured differently)

Indicative stamp duty (NSW, 2027)

For a $1.2M property:

• Standard stamp duty: approximately $50,000
• First home buyer: standard stamp duty (above threshold)

For a $750,000 property:

• Standard stamp duty: approximately $28,000
• First home buyer: $0 (exempt under $800k threshold)

Land tax (NSW)

• Threshold: $1,075,000 land value (2027)
• Rate above threshold: 1.6% plus $100
• Premium rate above $6.6M: 2%

Land tax applies to non-principal-residence land. Principal place of residence remains exempt.

VIC: substantial stamp duty plus expanded land tax base

Victoria has not implemented stamp-to-land-tax conversion but has expanded the land tax base substantially.

2027 VIC position

Stamp duty rates remain high. For a $1.2M Melbourne property:

• Stamp duty: approximately $66,000 (one of the highest in Australia)

First home buyer concessions:

• Full exemption up to $600,000
• Sliding concession to $750,000
• No concession above $750,000

Land tax (VIC)

The 2023-2024 expansion of the land tax base affects more property owners:

• Threshold: $50,000 land value (substantially lower than NSW)
• Rates: 0.2% to 2.65% depending on bracket
• Vacant Residential Land Tax: additional 1-3% for unoccupied dwellings in defined inner Melbourne areas
• Absentee Owner Surcharge: 4% additional for foreign owners

Victoria's land tax is now broader and more aggressive than other states. For investors with multiple properties or substantial land holdings, the cumulative land tax can be substantial.

ACT: completed transition to annual property tax

The ACT completed its long-planned transition from stamp duty to annual property tax in 2032. As of 2027, the transition is in late phase:

2027 ACT position

Stamp duty has been substantially reduced (approximately 30% of pre-transition levels). General Rates (the ACT's annual property tax) have been increased to fund the transition.

For a $900,000 Canberra property:

• Stamp duty: approximately $9,000 (transitional reduced rate)
• Annual General Rates: approximately $4,500/year

The ACT model represents the most complete stamp-to-annual conversion in Australia. The cumulative annual rates over typical ownership period exceeds the historical stamp duty, but spread over time rather than upfront.

QLD: standard stamp duty with foreign buyer surcharges

Queensland has maintained the traditional stamp duty model with selected surcharges.

2027 QLD position

For a $700,000 Brisbane property:

• Stamp duty: approximately $19,000
• Plus 8% foreign buyer surcharge if applicable

First home buyer concessions:

• Full exemption up to $500,000
• Sliding concession to $550,000

Land tax (QLD)

• Threshold: $600,000 land value
• Rates: 1% to 2.75% depending on bracket
• 2% absentee surcharge

QLD land tax is moderate by comparison to NSW and VIC.

WA: low rates, moderate reform

Western Australia has maintained relatively low stamp duty and modest land tax.

2027 WA position

For a $650,000 Perth property:

• Stamp duty: approximately $22,000
• Plus 7% foreign buyer surcharge if applicable

First home buyer concessions:

• Full exemption up to $450,000
• Sliding concession to $600,000

Land tax (WA)

• Threshold: $300,000 land value
• Rates: 0.25% to 2.67% depending on bracket

SA: standard stamp duty, smaller market

South Australia has standard stamp duty with limited reform.

2027 SA position

For a $600,000 Adelaide property:

• Stamp duty: approximately $26,000
• Plus 7% foreign buyer surcharge if applicable

First home buyer concessions:

• Full exemption up to $650,000 for established homes
• Higher threshold for new homes

Land tax (SA)

• Threshold: $755,000 land value (2027)
• Rates: 0.5% to 2.4% depending on bracket

The state-by-state comparison

For a $1M investment property purchase, indicative total transaction cost:

The differences are substantial and affect the deal math materially.

What this means for buyers

Five practical implications:

Implication 1: state choice matters for investors

For investors free to choose location, the state-by-state tax position is a substantial factor. Queensland's lower stamp duty plus moderate land tax has made it relatively more attractive to interstate investors.

Implication 2: first home buyer thresholds drive purchase price decisions

First home buyer concessions step at threshold values ($600,000 VIC, $650,000 SA, $800,000 NSW). Purchasing $1 above the threshold can cost $25,000-50,000 in lost concession. Buyers near the threshold should be acutely aware.

Implication 3: foreign buyer surcharges are substantial

7-8% foreign buyer surcharges in addition to standard stamp duty represent substantial impact. Foreign buyers in NSW, VIC, QLD, WA, SA pay materially more than domestic buyers.

Implication 4: ACT transition affects long-term holders differently

For ACT property held long-term, the annual General Rates accumulate substantially. ACT owners should model long-term holding cost differently from stamp-duty states.

Implication 5: VIC's expanded land tax base affects investors disproportionately

VIC investors holding multiple properties (or properties with high land value) face substantially higher ongoing tax than equivalent investors in other states. The accumulation can be $10,000-50,000/year for substantial portfolios.

Stamp duty as opportunity cost

Stamp duty is typically the largest single transaction cost in property purchase. For typical residential transactions:

• 3-5% of purchase price in stamp duty (varies by state and value)
• 0.1-0.2% in legal costs
• 0.1-0.3% in building inspection and other due diligence
• Total transaction cost: typically 3.5-5.5% of purchase price

The opportunity cost of stamp duty:

• $50,000 stamp duty represents 5-8 years of growth at typical equity returns
• For a 2-3 year holding period, stamp duty alone consumes most or all capital growth
• For a 10+ year holding period, stamp duty is amortised more comfortably

The 2027 strategic implications

Three strategic implications for 2027 buyers:

Strategy 1: longer holding periods favoured

Higher upfront stamp duty makes shorter holding periods less attractive. The 5-7 year hold has become substantially less viable than the 10+ year hold.

Strategy 2: state diversification for investors

Investor portfolios spanning multiple states benefit from land tax threshold diversification. Each state has its own threshold; holdings in multiple states use multiple thresholds.

Strategy 3: principal place of residence prioritised

The CGT exemption and the land tax exemption for principal place of residence make the family home more tax-efficient than equivalent investment property. The strategic case for buying a family home (rather than rentvesting) has strengthened relative to pre-2023.

The 2027 state-by-state property tax position is more varied than at any time in the past decade. Reading the position carefully for your specific state and circumstances is the most useful preparation for any property purchase.