When you buy a property in Tasmania, you'll pay a state government tax known as stamp duty. In Tasmania, this is called property transfer duty, and it's payable whenever you acquire an interest in a property.
Transfer duty can cost you thousands or tens of thousands of dollars. Eligible Tasmanian first home buyers and pensioners can get 50% discounts, depending on eligibility criteria and the value of the property.
How much is stamp duty in Tasmania?
Property transfer duty in Tasmania is calculated based on either the price you have paid for the property, including GST, or the unencumbered value of the property, whichever is higher. Usually, if you purchase the property on the open market, the price you agree to pay is what is used to calculate your stamp duty.
Property transfer duty is calculated on a sliding scale ranging from 1.75% up to 4.5%, rather than a set percentage, as described in the table below:
|Up to $3,000||$50|
|Between $3,000 and $25,000||$50, plus $1.75 for every $100 over $3,000|
|Between $25,000 and $75,000||$435, plus $2.25 for every $100 over $25,000|
|Between $75,000 and $200,000||$1,560, plus $3.50 for every $100 over $75,000|
|Between $200,000 and $375,000||$5,935, plus $4.00 for every $100 over $200,000|
|Between $375,000 and $725,000||$12,935, plus $4.25 for every $100 over $375,000|
|More than $725,000||$27,810, plus $4.50 for every $100 over $725,000|
Source: State Revenue Office of Tasmania
Stamp duty calculator
You can use Finder's stamp duty calculator to estimate your transfer duty costs. Just set the state to TAS before entering your details. Note that this is just an estimate and may not reflect your actual costs.
Stamp duty concessions for first home buyers
First home buyers are eligible for a 50% concession on property transfer duty when they buy an established home valued at $400,000 or less. To qualify, the buyer must occupy the home as their principal place of residence for a continuous period of six months, beginning within 12 months of the transfer. When purchasing as a couple, both parties need to be first-time buyers in order to receive the concession.
Pensioners can also receive a 50% concession when they downsize to a new home. Like the first home buyer concession, this discount only applies if the property is valued at $400,000 or less. These concessions are scheduled to end on 30 June 2022, so if you're buying a property after this date, you may need to check if they are still available.
Ben and Jacinta are buying a home in Hobart, valued at $395,000. Neither of them has owned a property before, so they're eligible for the first home buyer concession. Instead of paying $13,785 in property transfer duty, they will only need to pay $6,892.50.
When is stamp duty payable?
Property transfer duty is payable within three months of your property purchase, and needs to be paid to the State Revenue Office (SRO). Many buyers pay their transfer duty at settlement.
You (or more likely your conveyancer) will need to lodge the required documents, such as the agreement for sale and transfer instrument, with the SRO either in person, by mail or online. You can pay when you lodge, using the SRO's Property Transfer Duty Calculator to estimate how much you owe, or wait for the SRO to send you an assessment.
The documents you lodge need to include a duty lodgement cover sheet, which is available to download from the SRO website.
More questions about Tasmania stamp duty
Q: I'm a first home buyer – can I claim the first home owner grant as well as the stamp duty concession?
Yes! If you're building a home, or purchasing a newly built property, you should be able to claim both the $20,000 grant and the stamp duty concession.
Q: I'm thinking of buying a home in Tassie to use as a rental property, am I eligible for a stamp duty concession?
No, only first home buyers who will make the property their principal place of residence within the first 12 months are eligible for the concession, not investors.