Stamp duty on a $1,200,000 property in NSW is $48,187 at the 2026-27 rates, the same for first home buyers, upgraders and investors. At this price duty is almost as large as a 5% deposit: a first home buyer using the 5% Deposit Scheme puts down $60,000 and pays $48,187 in duty, so the duty nearly doubles the cash needed.

Duty from $1.1 million to $1.35 million
Price Duty Rate on the next dollar
$1,100,000 $43,687 4.5 cents
$1,150,000 $45,937 4.5 cents
$1,200,000 $48,187 4.5 cents
$1,250,000 $50,437 4.5 cents
$1,290,000 $52,237 5.5 cents
$1,300,000 $52,787 5.5 cents
$1,350,000 $55,537 5.5 cents

Where does the duty rate step up?

At $1,290,000. Below it each extra dollar of price costs 4.5 cents of duty. Above it, 5.5 cents ($52,237 plus $5.50 for every $100 over $1,290,000). The step is on the next dollar only, so there is no jump at the threshold itself, but between $1.2 million and $1.35 million the duty rises by about $7,350.

Can a first home buyer still avoid LMI at $1.2 million?

Yes. The 5% Deposit Scheme cap is $1,500,000 in Sydney and the NSW regional centres, so an eligible buyer can borrow 95% without lenders mortgage insurance. Outside those areas the cap is $800,000. Without the scheme, a 10% deposit would usually mean LMI of about $27,000 to $40,000 on a $1,080,000 loan.

Cash to buy at $1,200,000 before conveyancing
Route Deposit Duty Cash total
5% Deposit Scheme $60,000 $48,187 $108,552
10% with LMI added to the loan $120,000 $48,187 $168,552
20% deposit $240,000 $48,187 $288,552

Where does the duty money come from?

Usually your savings, because lenders lend against the price and not the costs on top. Owners upgrading often pay it from the sale of their current home. When the purchase settles first, a bridging loan can cover the gap. First home buyers sometimes use a parent’s guarantee so savings go to the duty instead of the deposit.

What else is due at settlement on a $1.2 million purchase?

The duty comes with smaller costs that are easy to forget.

  • Transfer registration: $183 (NSW Land Registry Services, 2026-27).
  • Mortgage registration: $183.
  • Mortgage insurance with 10% down: about $27,000 to $40,000 on a $1,080,000 loan, or $0 under the 5% Deposit Scheme if you qualify.
  • Conveyancing and searches: your conveyancer’s quote; see conveyancing costs in NSW.
  • Council and water rates: adjusted between buyer and seller at settlement, usually a few hundred dollars either way.

With 20% down and no mortgage insurance, the cash for a $1.2 million purchase is about $289,000 before conveyancing and inspections.

Can you pay less duty on a $1.2 million home?

  • First home buyer relief ends at $1 million, so at $1.2 million every buyer pays the full rate.
  • Each $10,000 you negotiate off the price saves $450 of duty.
  • Adding a spouse or partner to the title later can be exempt; see NSW stamp duty exemptions.
  • Investors pay the same duty as owner-occupiers, and foreign buyers pay surcharge purchaser duty on top.

What are the repayments on a $1.2 million purchase?

  • 5% down: a $1,140,000 loan at $6,835 a month (6%, 30 years).
  • 10% down: a $1,080,000 loan at $6,475 a month (6%, 30 years).
  • 20% down: a $960,000 loan at $5,756 a month (6%, 30 years).

How does the duty change around $1.2 million?

The marginal rate here is 4.5 cents per dollar: $450 more duty for each extra $10,000.

How the duty moves around $1.2 million, 2026-27 rates
Price Most buyers Eligible first home buyer
$1,100,000 $43,687 $43,687
$1,150,000 $45,937 $45,937
$1,200,000 (this price) $48,187 $48,187
$1,250,000 $50,437 $50,437
$1,300,000 $52,787 $52,787

Stamp duty at the next price points: $1 million and $1.5 million. The stamp duty calculator works out any other price.

Questions people ask

What is stamp duty on $1.2 million in NSW?

$48,187 at the 2026-27 general rates. There is no first home buyer concession at this price.

What is stamp duty on $1.3 million in NSW?

About $52,787, because the part above $1,290,000 is charged at 5.5%.

How much income do I need for a $1.2 million home?

With 5% down the loan is $1,140,000: about $252,000 single or $244,000 as a couple on our assumptions. See income needed for a $1.2m home loan.

Is duty lower on an apartment?

No. NSW transfer duty depends on the dutiable value, not the property type, except for vacant land under the first home buyer scheme.

Charles Touma runs the duty, deposit and loan for the property you are looking at and tests it against lenders before you bid. A free 30-minute call covers what $1.2 million needs. General information only, not credit advice. Lender policies change, and your own circumstances decide what suits you.

Sources: Revenue NSW, transfer duty rates 2026-27; Housing Australia, 5% Deposit Scheme price caps; Moneysmart, lenders mortgage insurance, checked 27 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.