Quick answer: Tasmania stamp duty on a $750,000 property is approximately $28,945. First home buyers pay zero stamp duty on properties up to $750,000 — the best relief in Australia because it covers both new and established homes (most states exclude established). This temporary 100% exemption runs until June 30, 2026. Building saves $15,000–$25,000+ because you only pay duty on land. Tasmania has no foreign buyer surcharge. Updated April 2026 based on State Revenue Office Tasmania data.
“Tasmania’s 100% exemption on both new and established homes is the most generous blanket concession in the country. But watch the cliff edge at $750,001 — there’s no phase-out, just a $29,000 jump. If you’re negotiating near that threshold, every dollar counts.” — Emma Whitfield, Property Finance Analyst at BuildBudget
Tasmania is the only state where first home buyers get full stamp duty exemption on established homes up to $750,000. NSW offers relief to $800,000, but phases out. Victoria caps it at $600,000. South Australia offers zero relief on established homes. Tasmania? Full exemption. Both new and established. Up to $750,000.
The catch is a cliff edge at $750,001—you pay full stamp duty with no concession. And the full exemption is temporary, running until June 30, 2026 (previously 50% concession). But if you’re buying under $750,000, Tasmania delivers the best incentives in Australia.
What Are the Tasmania Stamp Duty Rates?
Who Qualifies for First Home Buyer Stamp Duty Relief?
This is what makes Tasmania stand out. From February 18, 2024 to June 30, 2026, first home buyers get (source: State Revenue Office Tasmania):
100% stamp duty exemption on properties up to $750,000
This applies to:
- Vacant land (if you’re building on it)
- New homes (never been lived in)
- Established/existing homes (rare—most states don’t offer this)
- Off-the-plan purchases
Savings: Up to $28,945 on a $750,000 property
Examples:
- $500,000 property: $0 (normally ~$17,000)
- $650,000 property: $0 (normally ~$23,500)
- $750,000 property: $0 (normally ~$28,945)
The cliff edge:
Buy a property for $750,000 or less: $0 stamp duty
Buy a property for $750,001 or more: Full stamp duty with zero concession
There’s no phase-out. A $750,000 property costs you $0 in stamp duty. A $755,000 property costs you ~$29,000 in stamp duty. That’s a $29,000 jump for $5,000 more in property value.
If you’re looking at properties near $750,000, negotiate to stay under the threshold.
What Are the Standard Rates (Not First Home Buyer)?
If you don’t qualify for the first home buyer exemption, Tasmania uses a progressive scale with a unique quadratic formula for calculation (source: State Revenue Office Tasmania).
| Property Value | Approximate Stamp Duty |
|---|---|
| $500,000 | ~$17,000 |
| $650,000 | ~$23,500 |
| $750,000 | ~$28,945 |
| $1,000,000 | ~$40,000+ |
Tasmania’s formula is different from other states—it’s not a simple bracketed scale like NSW or VIC. The rate increases progressively as property value rises.
How Much Do You Save By Building Instead of Buying?
This is where building pulls ahead. Look at the actual numbers:
Example 1: Building in Kingston (Hobart)
| Buying Established | Building New | |
|---|---|---|
| Total value | $700,000 | $700,000 |
| What stamp duty is calculated on | $700,000 (full price) | $280,000 (land only) |
| Stamp duty payable (not FHB) | ~$26,000 | ~$8,500 |
| You save | — | $17,500 |
Example 2: First Home Buyer in Launceston
| Buying Established $650K | Building (Land $250K + Build $400K) | |
|---|---|---|
| Stamp duty on | $650,000 | $250,000 |
| First home buyer relief? | Full exemption ($0) | Full exemption ($0) |
| Total upfront cost | $0 stamp duty | $0 stamp duty |
Both scenarios get zero stamp duty under the $750,000 threshold. But building also means you’re not paying stamp duty on the $400,000 construction cost—ever.
Example 3: Non-First-Home Buyer in Battery Point
| Buying Established $900K | Building (Land $450K + Build $450K) | |
|---|---|---|
| Stamp duty on | $900,000 | $450,000 |
| First home buyer relief? | No (not FHB) | No (not FHB) |
| Stamp duty payable | ~$35,000 | ~$15,000 |
| You save | — | $20,000 |
Even if you don’t qualify for the first home buyer exemption, building saves you stamp duty on the construction cost (State Revenue Office Tasmania).
“Non-first-home-buyers often overlook the two-contract approach in Tasmania. A $20,000 stamp duty saving on a $900K build in Battery Point is significant — that’s your entire connection fees and driveway budget covered.” — James Thornton, Construction Cost Analyst at BuildBudget
You may also qualify for the First Home Owner Grant in Tasmania. See our Hobart building costs guide for what you’ll spend on the build itself.
See your Tasmania stamp duty savings
Our calculator shows the full picture—build cost, stamp duty on land only, and first home buyer eligibility.
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, State Revenue Office Tasmania 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.
When Does the 100% Exemption End?
The current 100% exemption is a temporary upgrade. Previously, Tasmania offered only 50% stamp duty concession for first home buyers. The full exemption is significantly more generous (source: Entourage Property).
Timeline:
- Before February 18, 2024: 50% concession (you paid half of stamp duty)
- February 18, 2024 – June 30, 2026: 100% exemption (you pay nothing up to $750K)
- After June 30, 2026: Unknown—may revert to 50% concession or be extended
If you’re close to the June 30, 2026 deadline, check the current policy before committing. Tasmania announces changes in the annual state budget.
Building saves stamp duty in Tasmania
Separate land and build contracts = duty on land only
What Other Concessions Does Tasmania Offer?
Pensioner Downsizing Concession
- 50% stamp duty concession on properties up to $600,000 (extended to June 30, 2025)
- For eligible pensioners (Commonwealth Seniors Health Card holders, Age Pension, Disability Support Pension recipients)
- Must be downsizing from larger home to smaller home
Off-the-Plan Unit Concessions
- Additional concessions may apply for off-the-plan apartment purchases
- Check with State Revenue Office Tasmania for current schemes
Do Foreign Buyers Pay More Stamp Duty in Tasmania?
Tasmania is one of only two jurisdictions (along with Northern Territory) that does not impose a foreign buyer stamp duty surcharge (source: Feasly).
NSW, VIC, QLD, WA, SA all charge 7-8% additional stamp duty for foreign buyers. Tasmania charges standard rates only (or $0 with first home buyer exemption).
If you’re a foreign buyer purchasing a $700,000 property in Hobart and qualify for the first home buyer exemption, you pay $0 stamp duty—the same as an Australian citizen.
When Is Stamp Duty Due in Tasmania?
Stamp duty is due within a certain period after settlement (check with State Revenue Office Tasmania for exact timeframe). In practice, your conveyancer handles it as part of the settlement process.
Frequently Asked 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 Tasmania.
What happens at the $750,000 cliff edge?
There’s no phase-out. Buy a property for $750,000 or less, and you pay $0 (if eligible for first home buyer exemption). Buy a property for $750,001 or more, and you pay full stamp duty (~$29,000+) with zero concession.
If you’re looking at a $755,000 property, negotiate down to $750,000 or below. That $5,000 discount saves you ~$29,000 in stamp duty.
Will the 100% exemption be extended past June 30, 2026?
Unknown. Tasmania announces policy changes in the annual state budget. The current full exemption (upgraded from 50%) runs until June 30, 2026. After that date, it may:
- Revert to 50% concession (pre-February 2024 policy)
- Be extended for another period
- Be replaced with a different scheme
Check the current policy before committing if you’re close to the deadline.
How does Tasmania compare to other states?
First home buyer stamp duty exemption:
- Tasmania: $750,000 (100% exemption, new AND established homes, temporary until June 30, 2026)
- ACT: $1,020,000 (highest threshold, but income-tested)
- NSW: $800,000 (but phases out, not full exemption at upper end)
- VIC: $600,000 (full exemption)
- QLD: $500,000 (full exemption)
- WA: $500,000 (full exemption)
- SA: Unlimited for new homes, $0 for established (worst for established homes)
Tasmania’s unique advantage is that established homes qualify up to $750,000, and the exemption is 100% (not a phase-out). Most states either cap it lower or exclude established homes entirely.
Can I claim the exemption if I’m buying land to build on?
Yes. Vacant land purchases qualify under the first home buyer exemption. If you’re buying a $300,000 block in Kingston to build on, you pay $0 stamp duty (assuming you meet the other eligibility requirements and the land is under $750,000).
The building contract itself isn’t subject to stamp duty, so your total upfront saving is the full stamp duty on the land (State Revenue Office Tasmania).
“Hobart’s property market has cooled slightly from its 2023 peak, but values under $750,000 are still very achievable — especially in Launceston and the outer suburbs. Time your purchase before June 2026 while the full exemption is still in place.” — 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.
What if I’ve owned property overseas?
Tasmania only looks at Australian property ownership. If you owned a flat in London or a house in Auckland, that doesn’t count. As long as you’ve never owned residential property in Australia, you qualify (assuming you meet the other requirements).
Rates current as of April 2026, based on State Revenue Office Tasmania, Entourage, and Feasly 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
- Tasmania offers 100% stamp duty exemption for first home buyers on properties up to $750,000 — includes both new AND established homes (best in Australia)
- Building saves $15,000-$25,000 in stamp duty compared to buying established — you only pay duty on land, not construction cost
- Temporary full exemption runs until June 30, 2026 (previously 50% concession, may revert after this date)
- Cliff edge at $750,001 — no phase-out, zero concession above threshold (negotiate to stay under $750K)
- No foreign buyer surcharge (unique with NT) — foreign buyers pay same rates as Australian citizens
- Non-first home buyers save $20,000 building $900K home vs buying established
- Stamp duty due within 30 days of settlement
Data Sources
All information sourced from official government agencies and verified sources:
- State Revenue Office Tasmania — Stamp Duty Information, accessed April 2026
- Entourage Property — First Home Buyer Grants Tasmania Explained, published 2025
- Feasly — Stamp Duty Tasmania, accessed 2025
