Stamp Duty Estimates with Rate Calculator

Stamp duty is a tax charged at the time of sale or transfer of residential property. It applies to properties sold in NSW, Victoria, Queensland, and South Australia. Stamp duty is charged on property purchases. The government imposes a certain amount of stamp duty depending on the property. In some states, the rate of stamp duty increases as the price hikes.

How does a stamp duty rate calculator help?

An effective way to calculate the stamp duty rate is to use a stamp duty rate calculator.

  • This tool allows one to enter the property price and the purchase date and calculates the stamp duty payable.
  • It helps homeowners enumerate their stamp duties before buying or selling a home.
  • It also tells one the current value of their house, allowing them to compare it against similar homes.

How is Stamp Duty Computation done?

There are two types of stamp duties – general and special.

  1. The general rate is charged on residential properties worth over $2 million.
  2. Special rates apply to non-residential properties (such as commercial property) and certain other assets like investment properties.

Stamp duty computation is done using a formula called the ‘stamp duty multiplier’. It is determined by the value of the property being bought or sold, and whether it is a primary residence or not.

stamp duty computation

What benefits does it offer?

  • The stamp duty is levied at 0.5% on the value of the property transferred.
  • If the property is sold within two years of purchase, then the stamp duty is paid twice.

Stamp duty is calculated using the property’s Assessed Value (AV). The AV is determined by the local government authority. There are two types of AV: State and Local Government.

  1. The state government determines the AV for all properties sold within its jurisdiction, except those in Tasmania.
  2. The local government sets the AV for all other areas.

Before one starts looking at houses or even thinking about buying them, they need to know what kind of tax they will have to pay. That’s where the Stamp Duty Calculator comes into play. It helps us to see whether we would save money or incur additional costs.

Stamp Duty Tax was introduced to reduce demand for housing and encourage home ownership. Stamp Duty Rate Calculator also shows us how much stamp duty we would save if we sold before the deadline rather than after.

Tahir Ismail

Learn More →