How is Stamp Duty Calculated in Tasmania?

Like in other states, stamp duty in Tasmania is calculated as a percentage of the property’s purchase price. The amount you pay depends on the property’s value and the calculations differ state by state. Below is a simplified breakdown of how stamp duty is calculated in Tasmania:

Here’s a simplified breakdown of how stamp duty in Tasmania is calculated:

  • Up to $3,000: $50

  • $3,001 to $25,000: $50 + $1.75 for every $100 above $3,000

  • $25,001 to $75,000: $435 + $2.25 for every $100 above $25,000

  • $75,001 to $200,000: $1,560 + $3.50 for every $100 above $75,000

  • $200,001 to $375,000: $5,935 + $4.00 for every $100 above $200,000

  • $375,001 to $725,000: $12,935 + $4.25 for every $100 above $375,000

  • Above $725,000: $27,810 + $4.50 for every $100 above $725,000

Example Calculation

Let’s say you’re buying a property in Tasmania for $500,000:

  1. The property falls into the $375,001 to $725,000 range.

  2. The base stamp duty is $12,935.

  3. The amount exceeding $375,000 is $125,000.

  4. Calculate $125,000 at $4.25 per $100:

    • $125,000 ÷ $100 = 1,250

    • 1,250 × $4.25 = $5,312.50

Total stamp duty: $12,935 + $5,312.50 = $18,247.50.

Exemptions and Concessions

Certain buyers may qualify for exemptions or concessions that significantly reduce or eliminate stamp duty costs:

First Home Buyers

As of July 2024 and up until 30 June, 2026 (unless extended), first-home buyers in Tasmania are exempt from paying stamp duty on properties valued under $750,000. This could save first-home buyers up to $28,945. Additionally, eligible buyers may qualify for the First Home Owner Grant (FHOG) of $10,000.

Off-the-Plan Purchases

Buyers purchasing apartments or townhouses off the plan can apply for a 50% stamp duty reduction if:

  • The property is valued under $750,000.

  • At least one purchaser is an Australian citizen.

Pensioners

Pensioners selling their family home to downsize may qualify for stamp duty concessions on their next property.

Family Transfers

Certain property transfers between family members, such as those related to inheritance or family trusts, may be exempt from stamp duty.

Additional Costs for Investors and Foreign Buyers

Investors

Investors pay the same stamp duty rates as owner-occupiers. While stamp duty isn’t deductible upfront, it can be added to your property’s cost base, potentially reducing capital gains tax when you sell.

Foreign Buyers

Foreign investors pay an additional 8% Foreign Investor Duty Surcharge (FIDS) on top of the standard stamp duty (and likely also on top of Foreign Investment Review Board - FIRB - charges).

Budgeting for Stamp Duty

Stamp duty is a substantial cost, so it’s essential to budget for it early in the property-buying process. Here’s how:

  1. Use an Online Calculator
    An online calculator specific to Tasmania can provide an accurate estimate of your stamp duty costs.

  2. Factor it into Your Deposit
    Include stamp duty in your upfront costs so you’re not left short when settlement comes around.

  3. Consult a Professional
    Speak to a mortgage broker, solicitor, or conveyancer for personalised advice and assistance with budgeting for stamp duty and other costs.

Ready to Make Your Move?

Whether you’re a first-home buyer, investor, or upgrading to your dream home, understanding and planning for stamp duty is crucial to a smooth property purchase.

It’s our aim to always be recognised as the best mortgage broker in Hobart by offering expert advice and tailored solutions for our clients. Whether you’re in Hobart, across Tasmania, or anywhere in Australia, we’re here to help you navigate the process with confidence.

Disclaimer

Stamp duty rates and exemptions are subject to change. The information provided here is accurate as of early 2025. Always check with the Tasmanian State Revenue Office or consult a professional for the most up-to-date information.

Previous
Previous

Everything You Need to Know About Refinancing Your Mortgage

Next
Next

Security Guarantee Loans: Enhancing Home Ownership with Guarantor Support