Foreign Investor Stamp Duty Surcharges 2026: Every Australian State Explained
Every Australian state and territory now charges foreign property buyers an additional stamp duty surcharge, on top of standard stamp duty, and an annual land tax surcharge on top of standard land tax. The rates have crept upward every year since the first surcharges were introduced in 2015, and in 2026 they represent one of the largest single cost items in an Australian foreign investment transaction.
This guide provides a comprehensive 2026 state-by-state comparison of foreign investor stamp duty surcharges, the annual land tax surcharge that follows, the definition of a foreign person in each state, and the narrow exemptions that remain available.
What Is the Foreign Purchaser Surcharge?
The foreign purchaser surcharge (sometimes called Additional Foreign Acquirer Duty or Foreign Investor Duty Surcharge depending on the state) is an additional stamp duty imposed on property purchases by foreign persons. It was introduced by NSW and Victoria in 2015 as an affordability and revenue measure and now exists in every state.
The surcharge is charged on the property purchase price, on top of standard stamp duty. A $1.5 million residential property in NSW would attract:
- Standard stamp duty: $67,990
- Foreign purchaser surcharge (9%): $135,000
- Total duty: $202,990
The surcharge applies at settlement and is payable by the foreign purchaser directly to the relevant state revenue office.
2026 Surcharge Rates by State
| State | Stamp Duty Surcharge | Land Tax Surcharge | Effective From | |---|---|---|---| | NSW | 9% | 5% | 2024 (up from 8%) | | VIC | 8% | 4% | 2024 (up from 7%) | | QLD | 8% | 3% | 2024 (up from 7%) | | WA | 7% | 4% | 2019 (added land tax 2024) | | SA | 7% | 0.5% | 2018 | | TAS | 8% | 2% | 2018 | | ACT | Flat fee per property | Varies | 2019 | | NT | Nil | Nil | No surcharge |
The NT remains the only Australian jurisdiction without foreign investor stamp duty surcharges, making it (with no state land tax either) the most foreign-friendly state for property investment in 2026.
NSW: 9% Stamp Duty, 5% Land Tax
New South Wales charges the highest surcharges in Australia.
Stamp duty surcharge: 9% of the property's dutiable value. Applied in addition to standard stamp duty.
Annual land tax surcharge: 5% of unimproved land value, plus the general land tax above the NSW threshold. No threshold applies to the foreign surcharge, so every dollar of land value attracts the full 5%.
Example: A $1,200,000 Sydney unit with $700,000 unimproved land value:
- Stamp duty surcharge at purchase: $108,000
- Annual land tax surcharge: $35,000 per year
- Plus standard stamp duty and land tax
Foreign person definition: Non-citizens and non-PRs, foreign corporations, trusts with foreign trustees or beneficiaries. NZ citizens holding Special Category visas (SCV) are treated as Australian for NSW surcharge purposes if ordinarily resident.
Victoria: 8% Stamp Duty, 4% Land Tax
Victoria has the highest property taxes in Australia overall when the vacant residential land tax (VRLT) and other levies are included.
Stamp duty surcharge: 8% (up from 7% in 2024). Applied in addition to standard stamp duty.
Annual land tax surcharge: 4% of unimproved land value.
Additional considerations for VIC foreign investors:
- Vacant Residential Land Tax at 1% to 3% if unoccupied
- 7.5% short stay levy on Airbnb revenue from January 2025
- Windfall gains tax on rezoning windfall (up to 50%)
Victoria is the most tax-aggressive state for foreign investors in 2026. See our related guide on off-the-plan property Australia for how Victorian foreign investors are adapting.
Queensland: 8% Stamp Duty, 3% Land Tax
Queensland raised its foreign stamp duty surcharge from 7% to 8% in 2024. The land tax surcharge was also increased.
Stamp duty surcharge: 8% of consideration.
Annual land tax surcharge: 3% of taxable land value.
Special notes: Queensland was the last mainland state to introduce foreign surcharges but has moved quickly to match NSW and VIC levels. The Olympic infrastructure pipeline continues to attract foreign capital into Brisbane new dwellings.
Calculate Total Transaction Costs for Any Property
PropBuyAI models full stamp duty, foreign surcharges, FIRB fees, and ongoing land tax for any Australian property so foreign investors can see the true cost of ownership.
Start Free →Western Australia: 7% Stamp Duty, 4% Land Tax
WA introduced foreign surcharges later than the eastern states but has caught up. WA added an annual land tax surcharge of 4% in 2024.
Stamp duty surcharge: 7% of the dutiable value.
Annual land tax surcharge: 4% of unimproved land value.
WA's relative distance from Asia-Pacific mainland buyer markets has historically limited foreign investor activity, but the mining boom and Perth price growth have drawn renewed interest.
South Australia: 7% Stamp Duty, 0.5% Land Tax
SA has one of the lower land tax surcharge rates but the full 7% stamp duty burden.
Stamp duty surcharge: 7% of the property value.
Annual land tax surcharge: 0.5% of taxable land value (one of the most modest in Australia).
Eligible purchasers: SA was the first state to offer some narrowly-targeted exemptions for significant investments creating jobs or housing supply.
Tasmania: 8% Stamp Duty, 2% Land Tax
Tasmania has been progressively tightening foreign investor rules.
Stamp duty surcharge: 8% of property value (up from 3% originally).
Annual land tax surcharge: 2% of taxable land value.
The combined Hobart affordability advantage has narrowed significantly as Tasmanian surcharges have risen.
ACT: Flat Fee Structure
The ACT uses a flat fee structure rather than percentage surcharge on stamp duty, but does charge an ongoing land tax surcharge.
Structure: ACT applies a conveyance duty surcharge as a fixed fee per property (approximately $32,000 for residential, indexed annually). This makes lower-value properties relatively more expensive per dollar and high-value properties proportionally cheaper.
Land tax surcharge: Varies with property type and value.
NT: No Surcharge
The Northern Territory imposes no foreign investor stamp duty surcharge and no state land tax. Combined with the 2025 federal investment push (AUKUS, critical minerals, Middle Arm infrastructure), Darwin is increasingly attractive for foreign buyers seeking Australian property exposure without state-level surcharge drag.
See our full Darwin analysis: best suburbs to invest in Darwin 2026.
Combined Cost Example: $1.5M New Dwelling by State
Here is the total transaction cost comparison for a foreign investor buying a $1.5 million new residential property (assuming $750k unimproved land value). Note: FIRB fee of $30,300 applies because established dwelling purchases are generally banned until March 2027 and only new dwellings are accessible to foreign buyers.
| State | Standard Stamp Duty | Foreign Surcharge | FIRB Fee (new) | First-Year Land Tax Extra | Total First Year | |---|---|---|---|---|---| | NSW | $67,990 | $135,000 | $30,300 | $37,500 | $270,790 | | VIC | $82,500 | $120,000 | $30,300 | $30,000 | $262,800 | | QLD | $38,025 | $120,000 | $30,300 | $22,500 | $210,825 | | WA | $59,463 | $105,000 | $30,300 | $30,000 | $224,763 | | SA | $65,080 | $105,000 | $30,300 | $3,750 | $204,130 | | NT | $71,250 | $0 | $30,300 | $0 | $101,550 |
NT is roughly 40% of the total first-year cost of NSW for a foreign investor on the same purchase, reflecting the absence of both state surcharges.
Exemptions and Concessions
Narrow exemptions exist in most states:
NSW: Pre-approved foreign-owned developers building new housing can apply for exemptions from both surcharges on specific projects.
VIC: Similar developer exemptions plus narrow humanitarian exemptions.
QLD: Significant economic benefit test for larger foreign investments creating jobs.
Spouse exemptions: All states recognise an exemption where one spouse is an Australian citizen or PR.
Corporation exemptions: Australian-incorporated entities with less than 20% single-foreign-owner or 40% combined foreign ownership are not treated as foreign.
Exemptions are narrowly administered and typically require specific applications with supporting evidence.
Strategic Implications for Foreign Buyers
Consider NT for yield-focused investments. Combined with NT's lack of land tax and relatively high rental yields, Darwin offers the best after-tax return profile for foreign investors in 2026.
New dwellings only. With the 2025-2027 established dwelling ban (see FIRB rules 2026), foreign buyers should focus exclusively on new builds.
Factor surcharges into offer price. A 7% to 9% additional cost can be partially offset by negotiating the headline price down. Informed foreign buyers often offer 3% to 5% below asking to compensate.
Model long-term land tax drag. An annual 5% NSW land tax surcharge on a $700,000 land value is $35,000 per year, or roughly $350,000 over 10 years. This easily outweighs the one-time stamp duty surcharge over longer holds.
Bottom Line
Foreign investor surcharges in Australia in 2026 are among the highest globally. Combined FIRB fees, stamp duty surcharges, and annual land tax surcharges can add 15% to 20% to the lifetime cost of ownership for foreign buyers.
NT remains the most foreign-friendly jurisdiction and deserves serious consideration in any foreign Australian property strategy. For all other states, buyers should focus on new dwellings (the only permitted category during the 2025-2027 ban) and model the full tax cost before committing.
Use PropBuyAI to model total transaction and holding costs across every Australian state. Explore pricing.