Stamp duty (property transfer)

Stamp duty — also called property transfer tax, conveyance duty, or registration tax in different jurisdictions — is a one-off government charge levied when title to a property changes hands. It is a transactional tax, paid by the buyer at the time of acquisition, and in most markets it is one of the largest single costs a buyer faces after the purchase price itself.

How it is typically calculated

Most jurisdictions use one of three structures:

Flat rate — a single percentage applied to the entire dutiable value. Simple but uncommon in modern markets.

Tiered (marginal) brackets — the property value is split across bands, each taxed at its own rate. The dominant model in most developed property markets.

Stepped (slab) — a single rate applies to the entire value once a threshold is crossed. Less common because of the cliff-edge distortions it creates near the thresholds.

The dutiable value is typically the higher of the contract purchase price or the market value at transfer date. Some jurisdictions also include the value of fixtures and chattels.

Why it matters

Stamp duty changes the maths of property buying in three important ways:

• Paid in cash, not financed — most lenders will not include stamp duty in the loan amount, so buyers need the duty available as cleared funds at settlement
• Compounds the deposit gap — duty of 3–6% of the purchase price effectively raises the cash required to settle from a 20% deposit to 24–26%
• Alters short-hold breakeven — because duty is a sunk cost paid upfront, properties held for short periods carry a disproportionately high effective annualised cost

Concessions and surcharges

Many jurisdictions apply concessions for first-home buyers, off-the-plan purchases, and certain occupier categories. Surcharges typically apply to foreign buyers or non-occupier purchasers. These rules change frequently and are jurisdiction-specific — buyers should confirm current rules before relying on a calculator estimate for a real transaction.