Legal & Documents 3 min read

Stamp Duty When Transferring a Car in NSW: Who Pays and How Much?

In NSW, duty on a motor vehicle transfer is paid by the buyer, not the seller. Here's how it's calculated and what you need to know as a seller.

Who pays duty and how it's calculated

In NSW, motor vehicle duty (formerly stamp duty) is the responsibility of the buyer. The amount is calculated on the vehicle's dutiable value:

  • **$0–$44,999:** 3% of the dutiable value
  • **$45,000–$75,599:** $1,350 + 5% of the amount over $45,000
  • **$75,600+:** Luxury motor vehicle duty rate applies

The 'dutiable value' is the higher of the purchase price or the market value. Revenue NSW can challenge a below-market sale price and apply duty on market value.

As a seller, this is not your concern — but it's helpful to understand so you can answer a buyer's questions.

How the transfer works in practice

When you sell to a private buyer, the buyer is responsible for paying duty at a Service NSW location within 14 days of taking possession. You as the seller notify RMS (via MyPlates or Service NSW online) that you've sold the vehicle.

When you sell to a licensed dealer like Sold Fast, the transfer is handled as a business acquisition and the dealer manages the duty and registration as part of their process.

Frequently asked questions

Does the seller pay stamp duty in NSW?

No. Motor vehicle duty in NSW is paid by the buyer. The seller's only obligation is to notify RMS of the disposal.

What happens to my registration when I sell the car?

You notify RMS of the disposal. The registration is either transferred to the new owner or cancelled. You may be entitled to a partial refund of unused registration.

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