Selling a house raises one big question about cost: does stamp duty come out of your pocket? Many sellers worry the tax will cut into the money they earn from the sale. The answer is simpler than you think, and you will find it below.

Stamp Duty When Selling a House: A Seller’s Complete Guide

Continue reading and learn who pays stamp duty during a sale. You will also see the true costs for a seller, as well as the work a lawyer does on your behalf.

Key Takeaways

• The buyer pays stamp duty on your sale, so you do not pay the tax yourself.
• The higher the price, the more stamp duty the buyer pays.
• You prepare a contract of sale and a Section 32 statement before you list.
• A lawyer sets your settlement date, deposit terms, and conditions.
• A lawyer manages settlement and reviews any buyer conditions for you.

The Stamp Duty Myth

Many sellers assume stamp duty will reduce their profits, yet the belief does not match how the tax works. Known in Victoria as land transfer duty, the tax applies to a purchase, not a sale. The buyer pays the tax at settlement, so you keep the money you make from the deal, minus any agent fees, loan payout, and conveyancing fees.

How The Amount Is Set

The government works out stamp duty on the property value, so the buyer pays more on a higher sale price. The government charges a higher rate as the value grows. A buyer counts the charge as part of the total cost of purchasing your home.

The Documents You Must Prepare

In Victoria, you prepare a contract of sale and a Section 32 statement before the property goes to market. The Section 32 discloses your title details, rates, and any easements on the land. Accurate documents keep the sale valid, so a property lawyer drafts both for you.

Set Your Sale Terms

Your terms decide the price, the settlement date, the deposit, and any special conditions you require. A property lawyer drafts terms to protect your position, so you sell on conditions you set. Clear terms give you control of the sale from the start.

Manage Your Settlement

Settlement is the day the buyer pays and ownership transfers to them. Your lawyer works with the buyer’s side and your bank to pay off your mortgage and finalise the transfer. A lawyer handles each step, so you receive your money on time.

Review A Buyer’s Conditions

A buyer may ask for conditions before agreeing to the sale, such as a finance clause or a building inspection. Each condition changes what the sale requires from you before it settles. A property lawyer checks every request, so you accept only terms to suit you.

A property lawyer reviews each condition before you agree, so you know what you commit to.

Sell With A Lawyer On Your Side

A seller in Victoria must prepare a contract of sale and a Section 32 statement, so accurate paperwork keeps your sale on track. A property lawyer drafts your documents, sets your terms, and manages settlement from start to finish. Conveyed, founded by Melissa Barlas, offers fixed fees from $330 and a 48-hour contract review turnaround. Reach out to Melissa Barlas and the team to talk through your sale.

Frequently Asked Questions

How do I calculate stamp duty on a purchase?

You can use a stamp duty calculator on your state revenue office website. The tool works out the amount of stamp duty from the dutiable value, since duty is calculated as a percentage of the price of the property.

Do sellers pay stamp duty when selling a house?

The buyer pays stamp duty when they buy a property, not the seller. So you do not pay stamp duty when selling a house in Victoria.

Does a first home buyer pay stamp duty?

Eligible first home buyers may receive a stamp duty concession or a full stamp duty exemption. The concession depends on the value of the property and your state or territory.

When is stamp duty paid after a purchase?

Stamp duty is paid within 30 days of settlement in most states. The purchaser may receive a notice from the state revenue office confirming the duty payable.

Is stamp duty charged on vacant land?

Yes, stamp duty applies to vacant land and residential land purchases. The buyer pays the state government tax on the land value.

Do the rules differ between Victoria and NSW?

Yes, each state or territory government sets its own duty rates and thresholds. A purchaser buying property in NSW pays under Revenue NSW, while Victoria applies land transfer duty.

Can a conveyancer or solicitor handle the transfer?

A conveyancer or solicitor can prepare the transfer and manage the payment of stamp duty. They confirm the duty liability and lodge your documents with the revenue office.