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The First Home Buyer Choice initiative will lower the upfront costs of home purchases for first home buyers who choose to opt in. 

If you're an eligible first home buyer, you have the choice to pay:

  • an annual property tax based on the land value of the property, or
  • an upfront transfer (stamp) duty based on the purchase price of the property, and land tax (where applicable).

You can use the First Home Buyer Choice Calculator to help you compare the estimated property tax and stamp duty.


Anyone can use the calculator, but you're eligible for the First Home Buyer Choice initiative if:

  • you're an individual (not a company or trust) aged 18 or over
  • you, or at least one person you're buying with, are an Australian citizen or permanent resident
  • you or your spouse have not previously:
  • you signed a contract of purchase on or after 11 November 2022.


  • You must be a first home buyer and meet the above eligibility requirements to pay property tax. All other purchasers must continue to pay stamp duty as normal.
  • If you're buying a property from somebody who is paying property tax, you will not be subject to property tax (unless you're also an eligible first home buyer and you choose to pay property tax).
  • If you signed a contract of purchase between 11 November 2022 and 15 January 2023, you can claim a refund of stamp duty paid through the Revenue NSW website. You have until 30 June 2023 to claim a refund.

Property requirements

  • Eligible properties include a house, townhouse, strata unit, company title unit, flat, duplex or a vacant block of residential land intended as the site of a first home.  

  • A property is not eligible if it includes a business or business premises or is the site of a holiday home. 

  • The value of the property (dwelling) you're buying must not exceed $1.5 million. If you're buying vacant land, it must not exceed the value of $800,000. 
  • You must move into the property within 12 months of purchase and live in it continuously for at least 6 months. 

What you need

  • property purchase price   
  • address for the property or estimated land value
  • property usage (owner-occupied or investment)
  • length of property ownership (1 to 75 years)
  • property details (property with a new or existing dwelling).

How to calculate

  1. Select the ‘Calculate’ button.
  2. Follow the prompts to estimate your property tax liability.
  3. Compare the estimated property tax and stamp duty. 

More information

The calculator:

  • Is provided as a tool only and what option is best for you will depend on your individual circumstances. Where necessary you should seek independent financial advice. 
  • Provides an estimate of property tax payments for up to 75 years of ownership. The property tax rate will be annually indexed to ensure property tax remains affordable.
  • Provides the ‘present value’ of property tax payments made during your expected years of ownership. Present value calculations express future payments in terms of today’s money. For example, with a 5% annual interest rate, $100 invested today would grow over one year to become $105. So, the present value of $105 paid in one year’s time would be $100 today.
  • Applies a ‘discount rate’ at a market rate of interest to future property tax payments to determine what your payments would be worth today (present value). 
  • Is unable to identify the land value of an individual dwelling for some strata titles, company titles and new land titles, and is thus unable to estimate the applicable property tax. In such cases, you may be able to find the property’s land value on the Valuer General’s website.

For more information, you can:

Last updated: 16 January 2023