Foreign Buyer Stamp Duty Australia 2026: State-by-State Surcharge Rates, FIRB Fees & Tax Guide

Foreign purchasers of Australian residential property face a layered cost structure in 2026: state-based foreign buyer surcharges ranging from 0% to 9% of the purchase price added to standard transfer duty, Commonwealth FIRB application fees starting at $15,100 for sub-$1,000,000 properties, and a distinct non-resident income tax regime with a 30% starting rate and no tax-free threshold. The total transaction tax on a $1,000,000 property for a foreign buyer can exceed $150,000 in New South Wales and Victoria — more than 15% of the purchase price — while falling to as little as zero in the ACT under the Home Buyer Conveyance Scheme. This guide provides a comprehensive, jurisdiction-by-jurisdiction breakdown of every cost layer a foreign buyer should model before committing to an Australian property purchase.

Data in this article is sourced from state and territory revenue offices, the Australian Taxation Office, and the Foreign Investment Review Board as at 1 July 2026. All dollar figures are in Australian dollars. Rates, thresholds, and fees are subject to change without notice and should be verified with a licensed professional before any property transaction.

State-by-State Foreign Buyer Surcharge Rates

Each Australian state and territory imposes its own foreign purchaser surcharge on residential property acquisitions, calculated as a percentage of the dutiable value and payable in addition to standard transfer duty. The surcharge landscape as at 1 July 2026 is as follows, ordered from highest to lowest rate.

New South Wales: 9% Surcharge

NSW imposes the highest foreign buyer surcharge in Australia at 9% of the dutiable value of residential property. This rate has been in effect since the 2025-26 budget and continues through 2026-27. The surcharge applies to foreign natural persons, foreign corporations, and trustees of foreign trusts acquiring residential-related property. On a $1,000,000 purchase, the surcharge alone is $90,000, bringing total duty (standard approximately $40,000 plus surcharge) to roughly $130,000.

NSW also applies the surcharge to residential land acquisitions, not just dwellings. A foreign buyer purchasing vacant residential land for future construction pays both standard duty on the land value and the 9% surcharge. From 1 July 2026, foreign purchasers of operational build-to-rent or retirement village properties may be eligible for a refund of the surcharge under specific conditions — a targeted carve-out that does not extend to standard residential purchases.

New South Wales maintains a separate foreign owner land tax surcharge of 4% per annum on the unimproved land value, applied in addition to standard land tax. This ongoing cost is separate from the one-off conveyance surcharge and should be factored into holding-cost projections for foreign owners.

Victoria: 8% Surcharge

Victoria's foreign purchaser additional duty sits at 8% of the dutiable value, having been raised from 7% in the 2024-25 budget. On a $1,000,000 purchase, the surcharge is $80,000 in addition to standard duty of approximately $55,000, for a total of roughly $135,000. Victoria also imposes an absentee owner surcharge on land tax of 4% per annum (increased from 2% as of the 2026 land tax year), plus a vacancy tax on residential properties in Melbourne's inner and middle suburbs that are unoccupied for more than six months in a calendar year.

Victoria's standard transfer duty rates are among the highest in Australia, with a 6% marginal rate applying to the broad $130,000–$960,000 band. The combination of high standard duty and an 8% surcharge makes Victoria the most expensive jurisdiction for foreign buyers at most price points, as detailed in the /stamp-duty-comparison-states-2026/ article.

Queensland: 8% Surcharge

Queensland's Additional Foreign Acquirer Duty is 8% of the dutiable value of residential property. AFAD applies to foreign individuals, foreign corporations, and trustees of foreign trusts. On a $1,000,000 property, the AFAD component is $80,000. Queensland's standard duty is relatively competitive at lower and mid-range values — $29,025 at $800,000 and $66,775 at $1,500,000 — but the 8% surcharge is applied to the full purchase price, not the margin, making it a substantial absolute cost.

Queensland also imposes a foreign owner land tax surcharge of 2% per annum on the taxable land value of residential property owned by foreign persons, applied in addition to standard land tax rates.

Tasmania: 8% Surcharge

Tasmania's Foreign Investor Duty Surcharge is 8% of the dutiable value of residential property. FIDS applies to foreign natural persons, foreign corporations, and trustees of foreign trusts acquiring residential land in Tasmania. The surcharge does not apply to commercial property acquisitions.

Tasmania's standard duty is relatively low — $18,248 at $500,000 and $62,685 at $1,500,000 — which partially offsets the 8% surcharge. A foreign buyer at $500,000 pays approximately $58,248 total (standard $18,248 plus surcharge $40,000), which is lower than NSW ($61,687) but higher than WA ($52,765) and SA ($56,330).

Western Australia: 7% Surcharge

WA's foreign buyer duty surcharge is 7% of the dutiable value, introduced at this rate and maintained through 2026-27. On a $1,000,000 purchase, the surcharge is $70,000 in addition to standard duty. WA's standard duty scale is moderate — $17,765 at $500,000 and $32,316 at $800,000 — making the combined cost more competitive than the 8% and 9% jurisdictions.

WA does not impose a separate foreign owner land tax surcharge as at 2026-27, which reduces ongoing holding costs for foreign owners compared with NSW, VIC, and QLD.

South Australia: 7% Surcharge

South Australia's foreign owner surcharge is 7% of the dutiable value of residential property. On a $1,000,000 property, the surcharge component is $70,000. SA's standard duty is moderately high at premium values — $37,830 at $800,000 and $76,330 at $1,500,000 — due to its 5% and 5.5% top marginal rates, partially eroding the advantage of the lower 7% surcharge relative to 8% jurisdictions at higher price points.

SA imposes a foreign owner land tax surcharge, applied as an additional component on the taxable site value of land owned by foreign persons.

Australian Capital Territory: 0% Conveyance Surcharge

The ACT imposes no foreign purchaser surcharge on conveyance duty. A foreign buyer pays the same duty as an Australian citizen or permanent resident. Under the owner-occupier HBCS, properties up to $1,020,000 pay zero conveyance duty regardless of the buyer's residency status. For properties above $1,020,000, partial duty applies on the excess.

The ACT does impose a foreign ownership land tax surcharge of 0.75% per annum on the unimproved value of residential land, which is an ongoing annual charge rather than a one-off transaction cost. While this adds a holding cost, the absence of an upfront conveyance surcharge remains the most significant structural advantage for foreign buyers considering the Canberra market.

Northern Territory: 0% Conveyance Surcharge

The NT imposes no foreign purchaser surcharge on transfer duty, matching the ACT as one of two jurisdictions without this cost layer. Foreign buyers pay the same formula-based or tiered duty as Australian citizens and permanent residents. On a $500,000 property, this means approximately $23,929 in total duty with no surcharge added — compared with $61,687 in NSW or $65,070 in VIC.

The NT does not impose a separate foreign owner land tax surcharge as at 2026-27, making it the least expensive jurisdiction for foreign buyers on a combined upfront and ongoing taxation basis. This advantage must be weighed against the NT's smaller property market and concentrated population centres.

FIRB Application Fees

In addition to state-level surcharges, foreign buyers must obtain approval from the Foreign Investment Review Board before acquiring residential property. FIRB application fees are tiered by property value and are payable at the time of application, not settlement. The 2025-26 fee schedule (indexed annually) is as follows:

1 · Properties with a purchase price up to $1,000,000: $15,100 2 · $1,000,001 to $2,000,000: $30,400 3 · $2,000,001 to $3,000,000: $60,900 4 · $3,000,001 to $4,000,000: $91,200 5 · $4,000,001 to $5,000,000: $121,800 6 · Above $5,000,000: higher tiered amounts apply, escalating with value

FIRB fees for the purchase of established dwellings (where permitted under the narrow exemptions that remain) are approximately three times the new-dwelling fee at the same price tier. However, as of 2026, the foreign investor ban on established dwellings — extended to 30 June 2029 — means these higher fees are essentially inapplicable for most residential purchases.

FIRB fees are non-refundable if the application is unsuccessful and are payable regardless of whether the property purchase proceeds. Foreign buyers should factor the FIRB fee into their upfront cost budget separately from stamp duty, as the fee is paid to the Commonwealth and is not credited against state duty. Buyers uncertain about FIRB eligibility or the application process should seek advice from a qualified migration agent or property lawyer before lodging an application.

Non-Resident Income Tax Rates

Foreign residents who derive rental income from Australian investment properties are taxed under a separate rate schedule with no tax-free threshold. The non-resident individual tax rates for 2026-27 are:

1 · $0 to $135,000: 30% on the entire amount (no tax-free threshold) 2 · $135,001 to $190,000: $40,500 plus 37% on the excess over $135,000 3 · $190,001 and above: $60,850 plus 45% on the excess over $190,000

The absence of the tax-free threshold, which exempts the first $18,200 of income for Australian residents, means a non-resident property investor pays tax from the first dollar of rental income. The 30% starting rate is substantially higher than the 19% starting rate (above the tax-free threshold) for Australian residents.

Non-residents may also be subject to the Medicare Levy Surcharge if they hold private health insurance, though they are generally not liable for the standard Medicare Levy. Foreign residents from countries with which Australia holds a double taxation agreement may be eligible for reduced withholding or tax offsets depending on the treaty terms. This is a complex area requiring specialist tax advice — the interaction between the DTA, Australian domestic tax law, and the foreign resident's home-country tax obligations can materially alter the net tax position.

Foreign Resident Capital Gains Tax Withholding

Foreign residents selling Australian residential property are subject to capital gains tax withholding at a rate of 12.5% of the sale price, applied to properties valued at $750,000 or above. The withholding is deducted by the purchaser at settlement and remitted to the ATO. The foreign resident vendor then lodges an Australian tax return to reconcile the actual CGT liability against the amount withheld.

The CGT withholding rate of 12.5% applies to the gross sale price, not the capital gain. This can result in substantial amounts being withheld — $100,000 on an $800,000 sale — that may exceed the actual CGT liability. The vendor recovers any excess through the tax return process, but the cash flow impact at settlement is significant and must be planned for.

Foreign residents are not entitled to the 50% CGT discount that Australian resident individuals can claim on assets held for more than 12 months. This means the entire nominal capital gain is assessable, and the effective tax rate on property gains is substantially higher for non-residents compared with residents holding for the same period.

From 1 July 2025, the CGT regime for foreign residents was expanded to capture disposals of shares and units in entities where more than 50% of the entity's value is attributable to Australian taxable property. Foreign investors holding property through corporate or trust structures should assess whether this expanded scope captures their interests.

Which States Are Cheapest for Foreign Buyers?

Ranking jurisdictions from cheapest to most expensive for foreign buyers requires combining standard duty, the foreign surcharge, and the FIRB fee at representative property values. The following ranking uses a $500,000 purchase as the baseline, with total transaction costs comprising standard duty plus surcharge plus the FIRB application fee of $15,100.

1 · Australian Capital Territory: $0 (HBCS) or investor-scale duty + $15,100 FIRB fee. Under the HBCS owner-occupier scale, the total is $15,100. This is the cheapest possible outcome for any foreign buyer in Australia.

2 · Northern Territory: $23,929 (formula duty) + $0 surcharge + $15,100 FIRB = $39,029. No other jurisdiction comes close to this total at $500,000.

3 · Western Australia: $17,765 standard + $35,000 surcharge (7%) + $15,100 FIRB = $67,865.

4 · South Australia: $21,330 standard + $35,000 surcharge (7%) + $15,100 FIRB = $71,430.

5 · Queensland: $15,925 standard + $40,000 surcharge (8%) + $15,100 FIRB = $71,025.

6 · Tasmania: $18,248 standard + $40,000 surcharge (8%) + $15,100 FIRB = $73,348.

7 · New South Wales: $16,687 standard + $45,000 surcharge (9%) + $15,100 FIRB = $76,787.

8 · Victoria: $25,070 standard + $40,000 surcharge (8%) + $15,100 FIRB = $80,170.

The spread between ACT ($15,100) and VIC ($80,170) at a $500,000 purchase price is $65,070 — more than 13% of the property value. At higher price points, the absolute differences grow substantially. At $1,500,000, the total transaction cost for a foreign buyer ranges from ACT HBCS partial duty (plus $30,400 FIRB fee in the $1M–$2M tier) to over $230,000 in Victoria (standard $82,500 + surcharge $120,000 + FIRB $30,400).

For foreign buyers with flexibility in location, the ACT and NT offer compelling cost advantages through zero conveyance surcharges. Among surcharge jurisdictions, WA and SA at 7% are least expensive, while NSW at 9% and Victoria at 8% with high standard duty are most expensive.

Vacancy Fees and Ongoing Holding Costs

Foreign owners of Australian residential property face ongoing costs beyond the one-off transaction charges. The Commonwealth vacancy fee applies where a foreign-owned dwelling is not occupied or genuinely available for rent for at least 183 days (six months) in a vacancy year. The fee is equal to the FIRB application fee paid at the time of purchase, effectively doubling the FIRB cost if the property is left vacant.

State-level land tax surcharges for foreign owners add further ongoing costs. NSW charges a 4% surcharge on unimproved land value in addition to standard land tax. Victoria charges an absentee owner surcharge of 4%. Queensland charges 2%. The ACT charges 0.75%. WA, SA, TAS, and NT do not impose separate foreign owner land tax surcharges as at 2026-27, though SA has a foreign owner surcharge on land tax in certain circumstances.

Foreign buyers should model the total cost of ownership — not just the transaction cost — over their intended holding period. A holding period of five years in NSW at 4% annual land tax surcharge on a property with $500,000 unimproved land value adds $100,000 in holding costs, far exceeding the one-off FIRB and stamp duty surcharges combined.

Temporary Residents and Visa Holders

Temporary residents — including holders of student visas (subclass 500), temporary graduate visas (subclass 485), and temporary skill shortage visas (subclass 482) — are subject to foreign buyer surcharges but may access certain exemptions or concessions depending on the state. Generally, temporary residents are classified as foreign persons for the purpose of both FIRB and state surcharges, and must obtain FIRB approval before purchasing.

Temporary residents may purchase one established dwelling to use as their principal place of residence, provided they are residing in Australia and the dwelling is not used for investment purposes. However, the foreign investor ban on established dwellings extended to 30 June 2029 has narrowed this pathway to specific qualifying circumstances. Temporary residents purchasing with an Australian citizen or permanent resident spouse or de facto partner may be eligible for joint-purchase arrangements that alter the surcharge treatment. State revenue offices assess surcharge liability on a case-by-case basis for mixed-residency purchasers.

Temporary residents who depart Australia permanently must sell any established dwelling within a prescribed period, typically three months from the date they cease to be a temporary resident. Failure to do so may attract compliance action from the ATO and FIRB.

Internal Links for the Next Decision

Understanding the full cost picture for foreign buyers requires modelling specific property values and locations. Use these Arrivau resources to progress your analysis:

· Use the /calculators/stamp-duty/ calculator to model total duty including foreign buyer surcharges for your specific property value and state — updated with 2026-27 rates across all eight jurisdictions · Read /stamp-duty-comparison-states-2026/ for the comprehensive side-by-side comparison of standard duty, first-home buyer concessions, and foreign buyer total costs at $500K, $800K, and $1.5M · Read /act-stamp-duty-2026/ for the detailed analysis of the ACT's zero foreign conveyance surcharge and the HBCS owner-occupier concessions · Read /nt-stamp-duty-2026/ for the Northern Territory's zero foreign surcharge policy, formula-based duty, and HomeGrown $50K grant program · Read /tas-stamp-duty-2026/ for Tasmania's 8% FIDS surcharge, standard duty rates, and the expired first-home buyer established-home exemption · See /stamp-duty-australia-2026-27-comparison/ for a broader overview of all states' duty scales and foreign surcharge policy context · Explore /investment-property-sale-cgt-50-percent-discount-2026/ for the CGT framework applicable to Australian residents disposing of investment property, which contrasts with the non-resident CGT rules described above

Information Sources

· Revenue NSW — Foreign purchaser surcharge and foreign owner land tax surcharge, 2026-27 · State Revenue Office Victoria — Foreign purchaser additional duty and absentee owner surcharge, 2026-27 · Queensland Office of State Revenue — Additional Foreign Acquirer Duty, 2026-27 · WA Department of Finance — Foreign buyer duty surcharge, 2026-27 · RevenueSA — Foreign owner surcharge, 2026-27 · SRO Tasmania — Foreign Investor Duty Surcharge, 2026-27 · ACT Revenue Office — Conveyance duty and foreign ownership land tax surcharge, 2026-27 · NT Territory Revenue Office — Transfer duty and foreign purchaser policy, 2026-27 · Australian Taxation Office — Non-resident individual tax rates and foreign resident CGT withholding, 2026-27 · Foreign Investment Review Board — Application fee schedule and foreign investment policy, 2025-26

FAQ

Q: What is the total stamp duty a foreign buyer pays in Australia in 2026?

A: Total stamp duty for a foreign buyer comprises standard transfer duty plus the state-based foreign buyer surcharge. On a $500,000 property, total duty ranges from $0 in the ACT (HBCS) to $65,070 in Victoria. On a $1,000,000 property, it ranges from $0 in the ACT to approximately $135,000 in Victoria and $130,000 in NSW. FIRB application fees of $15,100 or more are additional and payable separately to the Commonwealth.

Q: Which states charge the highest and lowest foreign buyer surcharges?

A: New South Wales charges the highest surcharge at 9%. Victoria, Queensland, and Tasmania charge 8%. Western Australia and South Australia charge 7%. The ACT and Northern Territory charge no foreign buyer conveyance surcharge. The ACT and NT are thus the cheapest jurisdictions for foreign buyers on the duty component alone, though this must be weighed against property price differences.

Q: What are FIRB application fees and do I have to pay them?

A: FIRB application fees are payable by foreign persons seeking approval to acquire Australian residential property. Fees start at $15,100 for properties up to $1,000,000 and escalate with property value. The fee is payable to the FIRB at the time of application, is non-refundable, and is separate from state stamp duty and surcharge. All foreign buyers must obtain FIRB approval before purchasing residential property.

Q: How are foreign residents taxed on Australian rental income?

A: Non-residents are taxed at 30% from the first dollar of Australian rental income with no tax-free threshold, rising to 37% above $135,000 and 45% above $190,000. Australian residents benefit from a tax-free threshold of $18,200 and a 19% starting rate. Non-residents are not entitled to the 50% CGT discount on property held for more than 12 months, and face 12.5% CGT withholding on sale proceeds above $750,000.

Q: Can temporary visa holders avoid the foreign buyer surcharge?

A: Generally, no. Temporary residents — including holders of student, graduate, and skilled temporary visas — are classified as foreign persons for state surcharge purposes. However, purchasing jointly with an Australian citizen or permanent resident spouse may alter the surcharge treatment depending on the state's assessment rules. Some states provide limited exemptions or refund pathways for temporary residents transitioning to permanent residency, though these vary by jurisdiction and should be verified with the relevant state revenue office.

General Information Disclaimer

This article is general information only and is not personal financial, tax, legal or credit advice. Stamp duty rates, thresholds and concessions can change without notice. Arrivau Pty Ltd (ABN 81 643 901 599) provides credit assistance as an ASIC Credit Representative, CRN 530978. Consider your objectives, financial situation and needs, and seek licensed advice before making a property decision. For an assessment of your borrowing position, speak with an Arrivau consultant — we respond within one business day.