Stamp Duty on Investment Property

On a $600,000 investment property, stamp duty ranges from $20,025 in Queensland to $31,070 in Victoria. That is an $11,045 gap on the same purchase price, determined entirely by which state the property sits in.

The base rates are technically the same for investors and owner-occupiers in most states. But investors cannot access any of the concessions designed for first home buyers and owner-occupiers: no exemptions, no discounted rates, no threshold concessions. A first home buyer purchasing a $750,000 property in NSW pays $0 in stamp duty under the FHB exemption. An investor purchasing the same property pays approximately $27,937.

That asymmetry is the single most important thing to understand about stamp duty on investment property in Australia. You pay the full standard rate on every dollar of the purchase price, every time, with no relief.

Stamp Duty Is Not Tax-Deductible on an Investment Property

This catches a lot of first-time investors. Unlike property management fees, loan interest, or insurance, stamp duty cannot be claimed as a tax deduction against your rental income. The ATO treats it as a capital cost, not an ongoing expense.

What stamp duty does do is increase your property's cost base. When you eventually sell, the stamp duty you paid at purchase is added to your acquisition cost, which reduces your capital gain and therefore your CGT liability. If you bought for $600,000 (plus $25,000 in stamp duty) and sold for $800,000, your gross capital gain would be $175,000 rather than $200,000.

That benefit only materialises at sale. For the entire holding period, the stamp duty you paid on day one sits as dead money. You cannot depreciate it. You cannot offset it against rental income. It is a sunk acquisition cost.

This is why stamp duty needs to be factored into your deposit and upfront cost calculations from the start, not treated as an afterthought.

State-by-State Stamp Duty for Investment Property

Every state and territory runs its own rate schedule. The table below shows what an Australian resident investor pays on a $600,000 established residential property, along with the top marginal duty rate and foreign buyer surcharge.

Rates current as at 1 July 2025. Foreign surcharge applies on top of standard duty. Source: Stamp Duty Calculator.

Queensland and the ACT are the cheapest jurisdictions at this price point. Victoria is the most expensive by a wide margin. The ranking shifts at higher price points because of differing top marginal rates, but for the $600,000 to $800,000 range where most investment-grade properties sit, this order holds.

How Much at $700,000 and $500,000

At $700,000, the spread widens further. Queensland comes in at approximately $24,525, while Victoria reaches $37,070, a gap of over $12,500.

At $500,000, Queensland charges approximately $15,925 and Victoria approximately $25,070. The pattern is consistent: Victoria's combination of higher rates and a separate non-PPR (non-principal place of residence) rate schedule pushes investor costs well above every other state.

The State-by-State Details That Matter for Investors

NSW

NSW applies progressive rates from 1.25% up to 7% on premium properties. The 7% rate kicks in above the premium threshold, which is indexed annually using CPI. For a typical investment property at $750,000, expect to pay approximately $27,937 in stamp duty.

NSW also has the highest foreign buyer surcharge at 9%, increased from 8% in January 2025. A foreign buyer purchasing a $750,000 property would pay approximately $95,437 in combined standard duty and surcharge.

If you are buying an investment property through a trust, note that the NSW land tax threshold drops from $1,075,000 to just $25,000 for discretionary trusts, with a 0.375% surcharge on top of standard land tax rates.

Revenue NSW warns that scams targeting duty payments are circulating. Fraudsters impersonate communications between buyers and their solicitor or conveyancer. Always verify payment requests directly with your conveyancer.

Victoria

Victoria is the most expensive state for stamp duty on investment property. The non-PPR rates are higher than owner-occupier rates, and the structure is punishing at mid-range price points: a $600,000 investment property incurs approximately $31,070, and an $800,000 property hits $43,070.

The ongoing costs compound the upfront hit. Victoria's land tax threshold is just $50,000 in unimproved land value, the lowest in the country. In practice, every investment property in Victoria triggers land tax. For more on how land tax stacks on top of stamp duty, see our land tax guide.

Victoria does offer a temporary off-the-plan duty concession available to all buyer types, including investors. This concession deducts outstanding construction costs from the dutiable value, potentially reducing duty by $20,000 to $30,000 on apartments and townhouses purchased before construction is complete.

Queensland

Queensland has the lowest stamp duty for investment properties in the $500,000 to $800,000 range, with a top marginal rate of 5.75% above $1 million. The rate structure is relatively flat through the mid-range, keeping costs lower than other states at the price points most investors target.

Queensland does have separate rate schedules for investment properties compared to homes. No first home buyer exemptions or home concession rates apply to investors.

Western Australia

WA has the lowest top marginal rate of any state at 5.15%, which benefits investors buying at higher price points. The same rates apply to investors, owner-occupiers, and companies.

WA also offers an expanded off-the-plan concession through 30 June 2028, subject to eligibility rules. This is one of the few concessions investors can access in any state.

South Australia

SA applies progressive rates from 1% to 5.50%. On a $700,000 investment property, stamp duty is approximately $30,830. No investor concessions exist.

One advantage for investors looking at commercial property: South Australia exempts commercial and industrial property transfers from stamp duty entirely.

Tasmania

Tasmania's rates have been unchanged since October 2013, with a top marginal rate of 4.50% above $725,000. That is the lowest top rate in the country. On a $500,000 property, Tasmanian stamp duty is approximately $18,250.

Tasmania's former off-the-plan concession ended for agreements after 30 June 2026.

ACT

The ACT has higher rates than most states for lower-value properties but becomes more competitive at higher price points. The top marginal rate is 4.54%. The ACT charges no foreign buyer surcharge.

The trade-off: the ACT charges land tax on all investment properties with no threshold. Every investor property is taxed from dollar one.

Northern Territory

The NT stands out for what it does not charge. There is no foreign buyer surcharge and no land tax. For foreign investors in particular, the NT is the cheapest jurisdiction in Australia when you account for the full cost picture.

On a $600,000 property, NT stamp duty is $23,929, mid-range compared to other states.

Foreign Investor Surcharges

Every state except the ACT and NT charges foreign persons an additional surcharge on top of standard rates. This applies to foreign persons, foreign corporations, and trustees of trusts with foreign beneficiaries.

The surcharges range from 7% (SA, WA) to 9% (NSW). At the 9% NSW rate, a foreign buyer purchasing a $750,000 property faces approximately $95,437 in combined duty, nearly 13% of the purchase price going to stamp duty alone.

A common trap: if you hold property in a discretionary trust and any potential beneficiary is a foreign person, the surcharge can apply even if you are an Australian citizen.

Landholder Duty: Buying Through a Company or Trust

If you are buying through a corporate or trust structure, there is a separate duty layer to consider. In NSW, acquiring a significant interest in a company or unit trust scheme with landholdings over $2 million may trigger landholder duty. This applies regardless of whether the underlying property itself changes hands.

For SMSF purchasers and investors using discretionary trusts, this is particularly relevant. The duty is calculated on the value of the land held within the entity, not the purchase price of the shares or units.

Victoria's 2026 Tax Relief Legislation

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Act 2026 received Royal Assent on 23 June 2026. This is new legislation that sits alongside Victoria's existing off-the-plan concession and commercial and industrial property tax reform.

Victoria's commercial and industrial property tax reform is transitioning commercial property to an annual tax model. After the initial purchase, subsequent sales of transitioned commercial properties are exempt from duty. For investors with commercial property in their portfolio, this changes the long-term cost equation.

Reducing Stamp Duty as an Investor: The Limited Options

Investor concessions are scarce. The main opportunities:

Off-the-plan purchases. Victoria's temporary concession runs through 20 April 2027. Western Australia's expanded concession extends through 30 June 2028. These concessions deduct outstanding construction costs from the dutiable value, which can reduce duty by tens of thousands on apartments and townhouses bought before completion.

Buying land separately and building. Stamp duty is calculated on the purchase price. If you buy vacant land at $300,000 and then build a $300,000 dwelling, you pay stamp duty only on the $300,000 land purchase, not the $600,000 total. The construction cost does not attract stamp duty.

Capitalising stamp duty into your loan. Some lenders allow you to add stamp duty to your investment loan. This eliminates the upfront cash hit but increases your total borrowing, your LVR, and the total interest you pay over the life of the loan. On a $25,000 stamp duty bill capitalised over a 30-year loan at 6.5%, you would pay an additional $31,900 in interest.

FAQ

Is stamp duty on an investment property tax-deductible?

No. The ATO treats stamp duty as a capital cost. You cannot claim it as a deduction against your rental income. It is added to the property's cost base, which reduces your capital gain when you sell.

Do investors pay the same stamp duty rate as owner-occupiers?

In most states, the base rates are the same. The difference is that investors cannot access concessions available to first home buyers and owner-occupiers. In Victoria, investors pay a separate non-PPR rate schedule that is higher than the owner-occupier rate. In Queensland, separate rate schedules apply for investment properties.

How much stamp duty on a $600,000 investment property?

It depends on the state. On a $600,000 investment property: QLD $20,025, ACT $20,400, WA $21,965, TAS $22,497, NT $23,929, NSW $24,740, SA $26,830, VIC $31,070.

Which state has the cheapest stamp duty for investors?

For properties in the $600,000 range, Queensland ($20,025) and the ACT ($20,400) have the lowest stamp duty. But the ACT charges land tax on all investment properties with no threshold. The cheapest state depends on your total cost picture including ongoing land tax.

Can I add stamp duty to my mortgage?

Some lenders allow it, but capitalising $25,000 in stamp duty over a 30-year loan at 6.5% adds $31,900 in interest. It also increases your LVR, which may push you into lenders mortgage insurance territory or reduce how much you can borrow for the property itself.