Transfer Duty in Queensland: Complete Guide for Real Estate Agents and Their Clients

A buyer signs a contract on a $750,000 established home and asks you whether they’ll pay stamp duty. If you can’t give them a confident, accurate answer — broken down by their buyer type and circumstances — you’re leaving them underprepared and leaving your professionalism on the table. Transfer duty is not your job to calculate, but it absolutely is your job to understand.

This is the complete reference for Queensland transfer duty as it stands in 2026. Standard rates, every available concession, the foreign buyer surcharge, payment timelines, and the precise line where your role ends and the conveyancer’s begins. Know this material and you will handle every client conversation without hesitation.

What Transfer Duty Is and Why It Matters

Transfer duty, formerly known as stamp duty, is a tax charged by the Queensland Government on certain transactions such as buying property, land or dutiable assets. It is administered by the Queensland Revenue Office (QRO) and governed by the Duties Act 2001 (Qld). For most residential buyers, it is one of the largest upfront costs they will face — often exceeding their legal fees, building inspection and loan establishment costs combined.

Transfer duty rates apply to transactions involving dutiable property: residential homes, investment properties, vacant land, and commercial properties. The tax is assessed on the dutiable value, which the legislation defines as the higher of the contract price or the current market value of the property. If the parties are related, associated, or the transfer isn’t at arm’s length, a formal valuation may be required.

All parties to a transaction are liable to pay transfer duty. In most cases, this duty is paid by the purchaser. In practice, vendors do not pay transfer duty on a standard residential sale — it is entirely the buyer’s liability, and buyers need to budget for it well before they reach the negotiating table.

Understanding the duty position of your buyer before you present an offer is not optional good practice — it is fundamental to ensuring the transaction proceeds without last-minute financing surprises.

Standard Transfer Duty Rates in Queensland

Queensland transfer duty operates on a progressive marginal rate system under the Duties Act 2001. This means the rate applicable to each portion of the dutiable value increases as the value increases — similar in structure to income tax brackets.

These transfer duty rates for Queensland apply to transactions involving dutiable property, including transfers of commercial or investment property. They are the baseline rates that apply whenever a concession or exemption does not reduce or eliminate the liability. The current rates under the Act are:

• Up to $5,000 — nil
• $5,001 to $75,000 — $1.50 for each $100, or part of $100, over $5,000
• $75,001 to $540,000 — $1,050 plus $3.50 for each $100, or part of $100, over $75,000
• $540,001 to $1,000,000 — $17,325 plus $4.50 for each $100, or part of $100, over $540,000
• Over $1,000,000 — $38,025 plus $5.75 for each $100, or part of $100, over $1,000,000

To illustrate: a buyer signs an agreement to buy a house with a dutiable value of $850,000. The house will be an investment property, so they don’t qualify for a home concession. Because the value is within the $540,000 to $1,000,000 range, duty is assessed at $17,325 plus $4.50 for each $100, or part of $100, over $540,000. That produces a duty liability of $22,625 on this property — a substantial cost that needs to be factored into the buyer’s budget before contract is exchanged.

Mortgage duty was abolished in Queensland on 1 July 2008. This is worth knowing when interstate buyers ask — they may be accustomed to budgeting for mortgage duty in other jurisdictions, and Queensland does not impose it.

The Home Concession: For Owner-Occupiers Who Are Not First Home Buyers

The Home Concession allows eligible buyers to pay a reduced rate of stamp duty when purchasing a property in Queensland to live in as their principal place of residence. This concession is available to existing homeowners — or any buyer who has previously owned property — so long as the property will genuinely be their home.

The Home Concession applies to the first $350,000 of a property value (for owner-occupiers who are not first home buyers), after which standard transfer duty rates apply. In practical terms, the home concession rate schedule is lower than the standard rate for dutiable values up to that threshold, producing meaningful savings on mid-range properties.

To qualify, the buyer must be purchasing the property as an individual and must move into it and live there on a daily basis within one year of settlement. Corporate or trust purchasers cannot access the home concession. This is a point that catches buyers who intend to hold property through a company or family trust — they will pay full duty even if they intend to reside there personally.

A buyer can claim only one concession for their home. This means a buyer eligible for both the home concession and another concession must elect which one to apply. In almost every scenario involving a first home buyer purchasing an established property, the first home concession will produce a better outcome — but verify this against the specific dutiable value.

First Home Buyer Concessions: The 2025 Changes You Must Know

Queensland’s transfer duty system underwent its most significant reform in a decade on 1 May 2025, when the state government introduced uncapped stamp duty exemptions for first home buyers purchasing new properties. If you are selling new homes, house-and-land packages, or vacant lots, this change is material to every first home buyer conversation you have.

First Home (New Home) Concession

For the First Home (New Home) Concession — for eligible transactions entered into on or after 1 May 2025 — a full transfer duty concession is available. There is no cap on the purchase price of the new home for first home buyers. This is a fundamental shift from the previous threshold-based system. A first home buyer purchasing a $1.2 million brand-new house and land package on or after 1 May 2025 pays zero transfer duty.

This exemption applies to new homes that have never been previously occupied or sold as a place of residence, off-the-plan purchases, house and land packages, and vacant residential land on which the buyer intends to build. The contract must be signed on or after 1 May 2025.

The concession only applies to residential land, and transfer duty will be imposed at standard transfer duty rates on any additional land that doesn’t have a residence on it or isn’t used for residential purposes. This matters for rural residential properties with large acreage — the duty-free treatment applies only to the residential component.

First Home Vacant Land Concession

For the First Home Vacant Land Concession — for eligible transactions entered into on or after 1 May 2025 — a full transfer duty concession is available for first home buyers. There is no cap on the value of the vacant land.

Transfer duty will be imposed at standard transfer duty rates on any additional land that won’t have a residence constructed on it or used for residential purposes. This means buyers purchasing a large allotment who intend to use only part of it for their dwelling should obtain advice on how the dutiable value of the residential portion is assessed.

First Home Concession on Established Properties

For first home buyers purchasing established (existing) homes, the concession structure works differently — and the thresholds have not changed in the same way.

For first home buyers purchasing an existing (established) property, the concession works differently. Duty is calculated at the home concession rate, then a $17,350 concession amount is subtracted from the result: properties under $709,999 receive a full concession with zero duty payable, while properties between $710,000 and $799,999 receive a partial concession on a sliding scale with some duty payable.

The full concession applies up to $500,000. A partial concession applies from $500,001 to $550,000, where the duty gradually phases in. Above $550,000, the full standard rate applies. This creates a structure where buyers of established properties above the threshold face full duty — a sharp contrast to the uncapped exemption available on new homes.

A buyer can only claim one first home buyer concession in their lifetime. This is a critical point to communicate. An eligible buyer who uses their concession on a modest established property cannot claim it again on a future purchase. The decision of which property type to apply the concession against — especially in the current environment where new home concessions are uncapped — warrants careful consideration, and the buyer’s conveyancer should guide that choice.

The First Home Owner Grant: A Related but Separate Benefit

Transfer duty concessions and the First Home Owner Grant (FHOG) are governed by separate legislation and have separate eligibility criteria. They can be claimed simultaneously where a buyer qualifies for both, but agents should not conflate them.

The Queensland First Home Owner Grant currently provides $30,000 for eligible first home buyers purchasing or building a new home. This boosted amount applies to contracts signed between 20 November 2023 and 30 June 2026 — after which it will revert to $15,000.

Combined with the $30,000 Queensland First Home Owner Grant (available for new homes under $750,000 until 30 June 2026), a first home buyer purchasing a new home in this range could save over $47,000 in upfront costs compared to an investor purchasing the same property. That is a meaningful financial advantage and a legitimate selling point when presenting new homes to eligible buyers.

The FHOG applies only to new or substantially renovated homes — it is not available on established properties. Buyers of established homes may still access the first home concession on duty, but they cannot receive the grant. Understand that distinction clearly before explaining either benefit to a client.

Foreign Buyer Additional Duty: The 8% Surcharge

In addition to standard transfer duty, foreign buyers may also need to pay an 8% Additional Foreign Acquirer Duty (AFAD) on residential property. This surcharge is applied to the dutiable value and must be included in the total payment.

Additional duty of 8% applies to acquisitions of residential land by foreign persons (including companies and trusts). The definition of “foreign person” under the Duties Act 2001 extends beyond individual non-citizens — it captures foreign corporations and trusts with foreign beneficiaries. This is an area where your overseas investor clients frequently need to be redirected to specialist advice, because the entity structure through which they purchase can significantly affect their AFAD exposure.

For a foreign buyer acquiring a $1 million residential property in Queensland, the AFAD alone represents $80,000 on top of the standard duty liability of $38,025 — a total duty cost of $118,025. That figure needs to be in a buyer’s budget from the first conversation, not surfaced by the conveyancer at the eleventh hour.

AFAD does not apply to commercial property, only to residential land. Foreign buyers acquiring commercial investments, rural properties, or primary production land are not subject to the surcharge, though they remain liable for standard transfer duty. When acting for foreign buyers across multiple property types, confirm the characterisation of the property before giving any indication of likely duty costs.

There is no exemption from AFAD for foreign buyers who intend to occupy the property as their principal residence. The 8% applies regardless of intended use. This surprises many international buyers who are accustomed to residency-based exemptions in other jurisdictions.

Investment Properties: No Concession Available

The position for investment property purchasers — whether domestic or foreign — is the simplest in the transfer duty framework. If a property will be an investment property, the buyer does not qualify for a home concession. Standard duty rates apply in full from the first dollar of dutiable value.

There is no off-the-plan concession for investors in Queensland in the way that existed historically — unlike some other states, Queensland does not currently offer a general duty concession to investors purchasing new off-the-plan property. A separate temporary off-the-plan concession applies to contracts signed before 21 October 2026 for eligible off-the-plan apartments or townhouses within a strata subdivision. Unlike the first home buyer exemption, this concession is available to all purchasers including investors and has no price threshold. If a client is considering an off-the-plan apartment purchase, confirm eligibility with the conveyancer as this concession is time-limited and subject to specific conditions.

The investment buyer calculation is mechanical: apply the standard rate table to the dutiable value, add 8% AFAD if the buyer is a foreign person acquiring residential land, and that is the total duty liability. There are no thresholds to navigate, no sliding scales, and no partial concessions. What the investment buyer pays at $500,000 follows the same rate structure as at $5 million.

This creates a material cost difference between owner-occupier and investment transactions at the same price point — a difference that sophisticated investors factor into their yield analysis. When preparing a property information document or informing a potential investor about holding costs, duty is part of that picture.

How Transfer Duty Is Calculated: The Mechanics

These rates apply to all property transactions in Queensland unless the buyer qualifies for a concession or exemption. The duty is calculated on the dutiable value, which is the higher of the contract price or market value.

The applicable rate is based on the date the contract is entered into, not the settlement date. This is operationally important. If rates or concession thresholds change between contract and settlement — as occurred on 1 May 2025 — it is the contract date that governs which regime applies. Buyers who signed before 1 May 2025 cannot retrospectively claim the uncapped new home concession, even if they settled after that date.

When a buyer claims a transfer duty concession for land they will use as their home, they apply the concession rate to the dutiable value of the property. The calculation for the first home concession on an established property involves two steps: calculate duty at the home concession rate, then subtract the applicable concession amount. The QRO provides an online estimator and a full calculator for complex scenarios.

The QRO transfer duty estimator can be used to get a quick estimate based on property value and buyer type. For more complex purchases — such as foreign buyers or transactions involving more than one property — the full transfer duty calculator should be used. Direct your clients to these tools at qro.qld.gov.au, but be clear that the calculator produces an estimate and their conveyancer will assess the final liability.

When Transfer Duty Is Payable

The timing of transfer duty payment is one of the most commonly misunderstood aspects of the process — particularly for buyers who have not previously purchased in Queensland.

Transfer duty must be lodged within 30 days of the contract becoming unconditional, and payment is due within 14 days of lodgement. In practice, “becoming unconditional” means the date on which the last condition in the contract is satisfied or waived — typically the finance approval date on a standard residential contract.

In practice, the conveyancer or solicitor manages the lodgement and payment through the QRO Online system, with the duty paid electronically at or before settlement. On most straightforward residential transactions, duty is effectively paid at settlement as part of the overall settlement statement. Buyers should understand that their conveyancer will require cleared funds to cover transfer duty in time for settlement — it is not a cost that can be deferred or financed through the loan in most circumstances.

Late payment incurs Unpaid Tax Interest (UTI), which accrues daily. For 2025–26, the UTI rate is 12.36% per annum. Delays in settlement caused by financing issues do not suspend the duty lodgement clock — once the contract goes unconditional, the 30-day lodgement window runs regardless of whether settlement proceeds on time.

If duty is not paid by the due date, the Queensland Revenue Office will issue a final demand to the party who received the assessment notice. If the duty remains unpaid, QRO will inform all parties to the transaction that duty must be paid and may also bring legal proceedings against all parties to recover the debt. That last point is material: as a party named on the contract, the vendor is not entirely insulated from an unpaid duty situation. It is another reason to ensure your buyer is financially prepared before contracts exchange.

Transfer Duty on Related-Party and Non-Arm’s Length Transfers

Not every transfer involving Queensland real estate is a straightforward sale between strangers. Agents working with family transactions, deceased estate transfers, or entity restructures need to understand where duty applies differently.

Stamp duty exemptions apply for property transfers following a divorce or separation. Full exemption applies for transfers of property following a person’s death. These exemptions have specific conditions attached — they are not automatic, and the conveyancer managing the transfer will need to satisfy QRO that the qualifying circumstances exist.

For transfers between family members at below-market consideration — a parent selling to a child at a reduced price, for instance — duty is assessed on the higher of the contract price or the property’s market value. Attempting to reduce the dutiable value through an artificially low sale price between related parties will not reduce the duty liability; it will produce a formal valuation and potential penalties.

What This Means for Queensland Agents

Transfer duty is not something you calculate, lodge or advise upon in any formal sense — that is the conveyancer’s role. But your job is to make sure your clients arrive at the contract table informed, financially prepared, and clear on what concessions they may be entitled to claim.

Know the buyer type before the offer goes in. Is this their first home? Are they an owner-occupier or investor? Are any of the buyers foreign persons? The answers to those three questions determine the entire duty picture — and you should be able to sketch that picture in a two-minute conversation.

The 1 May 2025 changes to the first home buyer regime are the most significant update to Queensland transfer duty in years. A full stamp duty exemption on new homes and vacant land with no value cap represents the most generous first home buyer concession in Queensland’s history. If you are working with first home buyers and selling new properties, you should be leading with this — not because it is a selling tactic, but because it is a material financial fact that affects your buyer’s position.

For foreign buyers, never let the 8% AFAD land as a surprise. That figure belongs in the first substantive conversation about purchasing costs, and your buyer should have foreign-investor tax advice before proceeding to contract. The same applies to buyers purchasing through companies or trusts — entity structuring affects duty liability in ways that are beyond the scope of general advice, and a specialist should be involved early.

Direct every client to a qualified conveyancer or solicitor before contracts exchange. Point them to the QRO transfer duty estimator at qro.qld.gov.au for a preliminary figure. And when a client asks you “how much stamp duty will I pay?” — answer with the framework, not a precise number. That is the professional standard, and it protects everyone.

Transfer duty in Queensland is governed by the Duties Act 2001 (Qld). Rates, concessions and thresholds are subject to change. Always verify current figures with the Queensland Revenue Office at qro.qld.gov.au and direct clients to obtain independent legal advice prior to entering into a contract.