Quick answer: ACT stamp duty on a $1,000,000 property is approximately $32,000. First home buyers pay zero stamp duty on properties up to $1,020,000 — the highest threshold in Australia — but it’s strictly income-tested ($250,000 combined income limit). Building instead of buying saves $15,000–$30,000+ because you only pay duty on land. The ACT has no foreign buyer surcharge and is transitioning away from stamp duty entirely. Updated April 2026 based on ACT Revenue Office data.
“The ACT’s $1,020,000 exemption threshold is nearly double what NSW offers. But the income test catches a lot of dual-income Canberra couples — if you’re both on $130K, you’re over the limit. Check your eligibility before building your purchase strategy around it.” — Emma Whitfield, Property Finance Analyst at BuildBudget
The ACT replaced the traditional First Home Owner Grant with stamp duty relief in 2019. If you qualify, you pay zero stamp duty on properties up to $1,020,000. That threshold is nearly double what NSW offers and triple most other states. But the catch is income testing—earn over $250,000 combined (or adjusted for dependents), and you’re out.
The ACT is also unique in two other ways: no foreign buyer surcharge (only jurisdiction with NT), and it’s transitioning away from stamp duty entirely toward annual land tax over a 20-year period.
Stamp Duty Rates in the ACT (2026)
First Home Buyer Concessions (Home Buyer Concession Scheme)
This is what most first home buyers will use. The thresholds are the highest in Australia.
| Property Value | Stamp Duty | Savings vs Standard Rate |
|---|---|---|
| $0 – $1,020,000 | $0 (full exemption) | Up to ~$32,000 |
| $1,020,001 – $1,455,000 | $6.40 per $100 over $1,020,000 | Concessional rate |
| $1,455,001+ | Standard rate less $35,238 | Maximum concession |
Maximum concession: $35,238 (2025-26 financial year)
Examples:
- $800,000 property: $0 (normally ~$24,000)
- $1,000,000 property: $0 (normally ~$32,000)
- $1,200,000 property: ~$11,520 (normally ~$38,600, saving ~$27,000)
Source: Loan Market Canberra, Feasly, Savings.com.au.
Income Thresholds (From July 1, 2024)
This is where the ACT scheme differs from every other state. You must meet income limits.
| Dependent Children | Maximum Total Income |
|---|---|
| 0 | $250,000 |
| 1 | $254,600 |
| 2 | $259,200 |
| 3 | $263,800 |
| 4 | $268,400 |
| 5+ | $273,000 |
“Total income” means: Combined gross income of all buyers and their domestic partners. Not just people on the title—partners count even if they’re not buying.
If you’re a dual-income couple earning $140,000 and $120,000 respectively, your combined income ($260,000) exceeds the $250,000 threshold. You don’t qualify.
Source: Savings.com.au.
Standard Rates (Not First Home Buyer)
If you don’t qualify for the HBCS (income too high, not a first home buyer, or owned property in last 5 years), standard stamp duty rates apply.
For properties above $1,455,000, the rate is $4.54 per $100 less the $35,238 concession that first home buyers would receive. This means higher-value properties pay progressively more.
The ACT is gradually reducing stamp duty rates as it transitions to land tax over a 20-year period (started 2012, ending ~2032). This means ACT stamp duty rates are lower than they were a decade ago and will continue decreasing.
Source: Feasly, ACT Treasury.
The Building Advantage: Pay Stamp Duty on Land Only
This is where building pulls ahead. Look at the actual numbers:
Example 1: Building in Gungahlin
| Buying Established | Building New | |
|---|---|---|
| Total value | $750,000 | $750,000 |
| What stamp duty is calculated on | $750,000 (full price) | $320,000 (land only) |
| Stamp duty payable (not FHB) | ~$22,500 | ~$7,200 |
| You save | — | $15,300 |
Example 2: First Home Buyer in Belconnen
| Buying Established $900K | Building (Land $380K + Build $520K) | |
|---|---|---|
| Stamp duty on | $900,000 | $380,000 |
| First home buyer concession? | Full exemption ($0) | Full exemption ($0) |
| Total upfront cost | $0 stamp duty | $0 stamp duty |
Both scenarios get zero stamp duty under the $1,020,000 threshold. But building also means you’re not paying stamp duty on the $520,000 construction cost—ever.
Example 3: High-Income Buyer in Dickson (Doesn’t Qualify for HBCS)
| Buying Established $1.1M | Building (Land $500K + Build $600K) | |
|---|---|---|
| Stamp duty on | $1,100,000 | $500,000 |
| Income test applies? | No (not FHB) | No (not FHB) |
| Stamp duty payable | ~$35,000 | ~$16,500 |
| You save | — | $18,500 |
Even if you don’t qualify for the first home buyer concession, building saves you stamp duty on the construction cost (ACT Revenue Office).
“Even high-income buyers who don’t qualify for the HBCS save $18,500 on a $1.1M build by keeping land and construction contracts separate. Don’t dismiss the two-contract approach just because you’re over the income threshold.” — James Thornton, Construction Cost Analyst at BuildBudget
You may also be interested in the First Home Owner Grant ACT — the ACT replaced FHOG with stamp duty relief, but neighbouring states still offer grants. See our Canberra building costs guide for what you’ll spend on the build itself.
See your ACT stamp duty savings
Our calculator shows the full picture—build cost, stamp duty on land only, and HBCS eligibility check.
How It Works
Not complicated, but you need to get the paperwork right.
- Buy the land first — you pay stamp duty on the land value only
- Sign a building contract separately — the building contract is NOT subject to stamp duty
- Important: The land and build must be separate contracts. If you buy a “house and land package” as a single contract, stamp duty may apply to the full amount
The Two-Contract Rule
For the saving to work:
- You need one contract for the land purchase
- You need a separate building contract with your builder
- The land settlement has to happen before construction starts (or at least, land and build are contracted separately)
- If a developer is selling you the land and building the home as a bundled deal in one contract, ACT Revenue Office can treat it as a single purchase—and you’ll pay duty on the lot
Talk to your conveyancer if you’re unsure whether your contracts are properly separated.
Off-the-Plan Unit Duty Exemption (RZ1)
If you’re buying an off-the-plan unit, townhouse, or apartment (not a standalone house), there’s a separate exemption running until June 30, 2026:
- 100% duty exemption on off-the-plan units up to $1 million property value
- This is separate from the HBCS—you can’t stack them, but RZ1 often gives better relief for unit buyers who don’t qualify for HBCS due to income
Example: You’re buying a $950,000 off-the-plan apartment in Braddon. You earn $300,000/year, so you don’t qualify for HBCS (income too high). But you do qualify for the RZ1 exemption—$0 stamp duty instead of ~$30,000.
This exemption was extended from July 1, 2024 to June 30, 2026. After that date, it expires.
Source: ACT Housing Budget Statement 2024-25.
Building saves stamp duty in ACT
Separate land and build contracts = duty on land only
Other ACT Concessions
Pensioner Duty Concession
- Full concession on first $1 million of property value (from July 1, 2024)
- For eligible pensioners: Commonwealth Seniors Health Card holders, Age Pension, Disability Support Pension recipients
- No income test beyond pension eligibility
Disability Duty Concession
- Full exemption for people with severe disabilities on properties up to $1,020,000 (from July 1, 2025)
- Carers also eligible under certain conditions
- Separate from HBCS—can be claimed regardless of previous property ownership
People Fleeing Family Violence
- Can access HBCS regardless of previous property holdings or alleged perpetrator’s income (from July 1, 2024)
- Removes the 5-year ownership ban and income test for eligible applicants
- Must provide evidence of family violence (police report, intervention order, or support service confirmation)
Source: ACT Treasury Budget Statement 2024-25.
No Foreign Buyer Surcharge
The ACT is one of only two jurisdictions (along with Northern Territory) that does not impose a foreign buyer stamp duty surcharge.
NSW, VIC, QLD, WA, SA all charge 7-8% additional stamp duty for foreign buyers. The ACT charges standard rates only.
If you’re a foreign buyer purchasing a $1 million property in Canberra, you pay the same stamp duty as an Australian citizen (or $0 if eligible for HBCS or RZ1).
This makes the ACT one of the most attractive jurisdictions in Australia for international property investment—especially with the HBCS $1,020,000 threshold.
The Land Tax Transition
The ACT is unique in Australia: it’s gradually phasing out stamp duty and replacing it with annual land tax over a 20-year period (started 2012, ending ~2032).
What this means:
- Stamp duty rates are dropping — Lower now than 2012, will keep decreasing until eliminated
- Land tax rates are rising — Higher now than 2012, will keep increasing until they fully replace stamp duty revenue
- Principal residence is exempt — If you live in the property, you don’t pay land tax
For first home buyers, this is ideal: you get reduced/zero stamp duty upfront (via HBCS), and you don’t pay annual land tax on your home while you live in it.
If you later turn the property into an investment, you’ll pay annual land tax at ACT rates. By 2032, there will be no stamp duty at all—just annual land tax on investment properties.
Source: ACT Treasury, Feasly.
Common Questions
Do I pay stamp duty on the construction cost?
No. As long as you have separate contracts for the land purchase and the build, the building contract isn’t dutiable. That’s the whole reason building saves you so much upfront in the ACT.
When do I pay stamp duty in the ACT?
Stamp duty is due within 90 days of the transaction date (usually settlement for land purchases, or contract date for off-the-plan). In practice, your conveyancer handles it as part of the settlement process.
Can I get both the HBCS exemption and the RZ1 off-the-plan exemption?
No. You can only claim one. But you’d choose whichever gives you the better outcome:
- HBCS: Better for properties over $1 million (up to $1,455,000 with concessional rates)
- RZ1: Better if you don’t qualify for HBCS due to income, but only applies to off-the-plan units up to $1 million
Your conveyancer will calculate which saves you more.
What if I don’t meet the HBCS income test?
You pay standard stamp duty rates. But if you’re building, you still only pay duty on the land—not the construction cost. That’s a significant saving regardless of income.
If you’re buying an off-the-plan unit under $1 million, you can use the RZ1 exemption instead (until June 30, 2026).
How does the ACT compare to other states?
Stamp duty exemption thresholds for first home buyers:
- ACT: $1,020,000 (highest in Australia, but income-tested)
- NSW: $800,000 (no income test)
- VIC: $600,000 (no income test)
- QLD: $500,000 (no income test)
- WA: $500,000 (no income test)
- SA: Unlimited for new homes, $0 for established (no income test)
The ACT has the highest threshold, but the income test excludes high earners. NSW has the second-highest threshold ($800,000) with no income test—making it more accessible for dual-income professional couples.
Will land tax affect me?
Not if you live in the property. Principal residences are exempt from ACT land tax.
If you turn the property into an investment later, you’ll pay annual land tax. Rates vary by property value—the more valuable the land, the higher the annual tax.
The ACT calculates land tax on the unimproved land value (what the land would be worth without any buildings), not the total property value.
Can I claim the concession if I’m buying land to build on?
Yes. Vacant land purchases qualify under HBCS. If you’re buying a $400,000 block in Gungahlin to build on, you pay $0 stamp duty (assuming you meet the income test).
The building contract itself isn’t subject to stamp duty, so your total upfront saving is the full stamp duty on the land (ACT Revenue Office).
“Canberra’s land values are high relative to other capitals, but the $1,020,000 exemption threshold means most first home buyers building in Gungahlin or Belconnen will pay zero stamp duty. The income test is the real hurdle, not property prices.” — David Park, Housing Market Researcher at BuildBudget
Compare the total cost in our build vs buy analysis. For financing options, learn about construction loans vs home loans. Estimate your total build cost with our free calculator.
Rates current as of April 2026, based on ACT Revenue Office, Loan Market Canberra, Feasly, and Savings.com.au data. Your situation will have details we can’t cover here—talk to a conveyancer or solicitor before making decisions based on these numbers.
Key Takeaways
- ACT offers highest stamp duty exemption threshold in Australia ($1,020,000) with maximum concession of $35,238
- Income-tested: $250,000/year base limit (adjusted $4,600 per dependent child) for all buyers plus domestic partners
- Building new saves stamp duty on construction costs (pay only on land value) — typical saving $15K–$30K+
- Payment due within 90 days of contract date (not settlement)
- Exemption applies to new and established homes, vacant land, and off-the-plan purchases
- Conveyancer lodges transfer documents with payment — concession calculated automatically if eligible
Data Sources
All information sourced from official government agencies:
- ACT Revenue Office — Stamp Duty Rates and Concessions, accessed April 2026
- ACT Government — Home Buyer Concession Scheme eligibility, 2025-26 financial year
- Loan Market Canberra, Feasly, Savings.com.au — ACT stamp duty guidance, 2026
