Stamp Duty on Inherited Property NSW: The Real Rules (2026)

August 21, 2026 3 Min Read

Stamp duty on inherited property NSW rules aren’t free, and they aren’t as expensive as buying a house either. You pay a fixed $100, but only in specific situations. Here’s exactly when that applies, and when the real rules cost far more.

Quick Answer: Stamp Duty on Inherited Property NSW

Stamp duty on inherited property NSW cases usually means a fixed $100 duty, not zero and not the $50 some guides still quote. That low rate only applies if the transfer matches the will exactly. Buying out a co-beneficiary’s share, varying the distribution, or receiving more than your entitled share triggers standard duty on that portion instead. Capital gains tax is a separate federal tax that’s triggered later, when the property is sold, not when you inherit it. Foreign beneficiaries also face a 9% surcharge unless the transfer strictly follows the will.

1. The $100 Rule, and When It Actually Applies

Inheriting under a will or intestacy triggers a fixed $100 duty. This is current as of Revenue NSW’s May 2026 update, not the $50 figure some older guides still show.
The transfer must match the will exactly. If you get exactly what the will says, the $100 rate applies. Nothing more.
Moving title to the executor first is duty-free. This step is called a transmission application. It doesn’t attract duty under NSW law.
The $100 only applies to the second step. That’s the transfer from executor to beneficiary. It must follow the will to get the lower rate.

2. Stamp Duty vs Capital Gains Tax: Two Separate Taxes

Stamp duty and capital gains tax are not the same thing. Stamp duty is a state tax on the title transfer. Capital gains tax is a federal tax on a later sale.
You won’t owe CGT just for inheriting. The tax only kicks in if and when you sell the property later on.
Your cost base usually resets to the date of death. So this affects your future capital gain, not your stamp duty bill.
Mixing the two up leads to bad planning. Someone worried about a big CGT bill might wrongly think it applies right away. It doesn’t.

3. Buying Out a Sibling’s Share: A Worked NSW Example

A buy-out is treated differently from inheriting. So if you and a sibling each inherit half a $1.2 million house, and you buy their half, that purchase is a separate transaction.
Standard duty applies only to the share you’re buying. In this example, you’d pay standard NSW duty on the $600,000 portion, not the $100 concessional rate.
The $100 rate covers only your original inherited share. Because your own half still came to you under the will, unaffected by the buy-out.
This surprises a lot of people. Since many assume the whole property stays at the low rate, when only the inherited portion actually does.

4. Foreign Beneficiaries Face a Real Surcharge

The surcharge purchaser duty rate is now 9%. This rose from 8% on 1 January 2025, and it’s a substantial extra cost on a valuable property.
Foreign beneficiaries are exempt, but only under one condition. So the transfer must strictly follow the will for the surcharge exemption to apply.
Any deviation removes the exemption. Because a deed of family arrangement or an uneven distribution can expose a foreign beneficiary to the full 9% surcharge.
This is easy to miss in estate planning. Since families often vary a will informally, not realising it can trigger a large, unexpected duty bill.

FAQ: Stamp Duty on Inherited Property NSW

Do I have to pay stamp duty on a property I inherited in NSW?
Usually yes, but only a fixed $100, provided the transfer matches the will or intestacy rules exactly.

Is there capital gains tax on inherited property in NSW?
Not at the point of inheriting. CGT only applies later, if and when you sell the property.

Do I pay stamp duty if I buy out my sibling’s share of an inherited house?
Yes. Standard NSW duty applies to the share you’re purchasing, separate from the $100 rate on your own inherited portion.

Do foreign beneficiaries pay surcharge purchaser duty on inherited property in NSW?
Only if the transfer doesn’t strictly follow the will. If it does, they’re exempt from the current 9% surcharge.

What is a transmission application in NSW?
It’s the step that moves title from the deceased to the executor. It’s duty-free, separate from the later transfer to the beneficiary.