Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Hobart's property market is included in our pack
Buying property in Hobart as a foreigner in 2026 comes with significantly higher costs than most other Australian cities, mainly because Tasmania adds an 8% foreign investor duty surcharge on top of standard stamp duty.
This guide breaks down every fee, tax, and hidden cost you should budget for when purchasing residential property in Hobart, from transfer duty and FIRB fees to conveyancing and ongoing ownership expenses.
We constantly update this blog post to reflect the latest regulations and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Hobart.
Overall, how much extra should I budget on top of the purchase price in Hobart in 2026?
How much are total buyer closing costs in Hobart in 2026?
As of early 2026, total buyer closing costs in Hobart range from approximately 4% to 6% for non-foreign buyers, but jump dramatically to 12.5% to 15% (plus FIRB fees) for foreign buyers because Tasmania charges an 8% foreign investor duty surcharge on residential property.
If you are keeping expenses to the bare legal minimum as a local buyer, you could potentially manage with around 4% of the purchase price (roughly AUD 28,000, USD 18,760, or EUR 16,000 on a AUD 700,000 property), covering just transfer duty, basic legal fees, and registration.
Foreign buyers should realistically plan for a maximum budget of around 15% plus the FIRB application fee, which on a AUD 700,000 Hobart property means approximately AUD 105,000 to 120,000 (USD 70,350 to 80,400, or EUR 59,850 to 68,400) when including all checks and professional fees.
The main factors that determine whether your Hobart closing costs fall at the low or high end include your foreign person status under Tasmanian law, the purchase price (since duty is calculated on a sliding scale), whether you need FIRB approval, and how many optional inspections and legal checks you choose to include.
What's the usual total % of fees and taxes over the purchase price in Hobart?
For most buyers in Hobart, the usual total percentage of fees and taxes over the purchase price runs between 4% and 6% for Australian residents, but climbs to around 12% to 15% for foreign persons due to Tasmania's 8% foreign investor duty surcharge.
The realistic low-to-high range that covers most standard Hobart property transactions is 3.5% (for a low-value purchase by an eligible first home buyer) up to 15% or more (for a foreign buyer purchasing an established dwelling with full checks).
Within that total, government taxes typically make up the largest portion, with transfer duty alone accounting for roughly 3.5% to 4.5% of the purchase price, while professional service fees like conveyancing and inspections usually add another 0.5% to 1.5%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Hobart.
What costs are always mandatory when buying in Hobart in 2026?
As of early 2026, the mandatory costs when buying property in Hobart include Tasmania property transfer duty (stamp duty), Land Titles Office registration fees (around AUD 250 for transfer registration plus AUD 163 for mortgage registration if borrowing), conveyancing or solicitor fees, and for foreign persons both the 8% Foreign Investor Duty Surcharge and the FIRB application fee.
Optional but highly recommended costs for Hobart buyers include building and pest inspections (particularly important given Tasmania's climate and older housing stock), strata records checks if buying an apartment or townhouse, and an independent property valuation if not arranged by your lender.
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What taxes do I pay when buying a property in Hobart in 2026?
What is the property transfer tax rate in Hobart in 2026?
As of early 2026, Tasmania charges property transfer duty (stamp duty) on a sliding scale rather than a flat rate, with the effective rate on typical Hobart purchases working out to approximately 3.5% to 4.5% depending on the property value.
Yes, there are significant extra transfer taxes for foreign buyers in Hobart, as Tasmania's Foreign Investor Duty Surcharge adds 8% of the property value on top of the standard transfer duty for purchasers who meet the "foreign person" definition.
Australia does not use VAT, but instead uses GST, and for most residential purchases in Hobart the GST is already included in the contract price for new builds or simply does not apply separately for resale homes, so buyers typically do not see it as an additional line item.
Transfer duty in Hobart is calculated using the official SRO Tasmania sliding-scale table (with a top marginal rate of AUD 4.50 per AUD 100 above AUD 725,000) and is typically paid around settlement when your conveyancer lodges the transfer documents.
Are there tax exemptions or reduced rates for first-time buyers in Hobart?
Tasmania offers first home buyer duty relief that can reduce transfer duty to zero for eligible purchasers, though the relief depends on meeting specific residency, property value, and usage conditions that may exclude many foreign buyers.
If you buy property in Hobart through a company instead of as an individual, the foreign surcharge and land tax surcharge rules can still apply depending on whether the entity qualifies as "foreign" under Tasmania's definitions, and you may also face different land tax treatment.
From a Tasmania transfer duty perspective, there is no major difference between new-build and resale properties, but federal foreign investment rules currently restrict most foreign buyers from purchasing established dwellings (resales) during the ban period from April 2025 to March 2027.
To qualify for first home buyer duty relief in Hobart, buyers must typically provide documentation proving they are eligible first home buyers, that they will occupy the property as their principal residence, and that they meet any residency or visa requirements specified by the State Revenue Office.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Hobart in 2026?
How much does a notary or conveyancing lawyer cost in Hobart in 2026?
As of early 2026, conveyancing or solicitor fees for a residential property purchase in Hobart typically range from AUD 1,500 to 3,500 (approximately USD 1,000 to 2,350 or EUR 860 to 2,000), with additional disbursements for searches and certificates adding another AUD 300 to 900 (USD 200 to 600 or EUR 170 to 510).
Conveyancing fees in Hobart are usually charged as a flat professional fee rather than a percentage of the property price, though the complexity of your transaction can push the fee toward the higher end of the range.
Translation or interpreter services for foreign buyers in Hobart typically cost AUD 150 to 400 per hour (USD 100 to 270 or EUR 85 to 230) for NAATI-certified professionals, though you may only need these if you want contracts explained in your first language or your lender requires translated documents.
If you plan to rent out your Hobart property or purchase through a company or trust structure, engaging a tax advisor is highly recommended, and you should budget AUD 500 to 1,500 (USD 335 to 1,000 or EUR 285 to 855) for basic setup and first-year guidance.
We have a whole part dedicated to these topics in our our real estate pack about Hobart.
What's the typical real estate agent fee in Hobart in 2026?
As of early 2026, the typical real estate agent commission in Hobart ranges from approximately 2% to 3.5% of the sale price, but this fee is almost always paid by the seller rather than the buyer.
In Hobart and across Australia generally, buyers do not pay the selling agent's commission, so as a purchaser you will only face an agent-style fee if you choose to hire a buyer's agent to help you find and negotiate a property.
If you do engage a buyer's agent in Hobart, expect to pay either a percentage of the purchase price (often 1.5% to 2.5%) or a fixed fee, with realistic costs ranging from AUD 8,000 to 25,000 (USD 5,360 to 16,750 or EUR 4,560 to 14,250) depending on the service level and property value.
How much do legal checks cost (title, liens, permits) in Hobart?
Legal checks in Hobart, including title searches, certificates, and council/water inquiries, typically cost AUD 300 to 900 in total (approximately USD 200 to 600 or EUR 170 to 510), with strata property checks adding to the higher end of that range.
Property valuation fees in Hobart, when required by your lender or requested independently, commonly run from AUD 300 to 700 (USD 200 to 470 or EUR 170 to 400).
The most critical legal check you should never skip in Hobart is the title search, which costs only AUD 38.20 but confirms you are buying what you think you are buying and reveals any encumbrances, easements, or restrictions on the property.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Hobart.
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What hidden or surprise costs should I watch for in Hobart right now?
What are the most common unexpected fees buyers discover in Hobart?
The most common unexpected fees buyers discover in Hobart include higher-than-expected transfer duty (because Tasmania bases duty on the greater of purchase price or "unencumbered value"), strata special levies or building defect costs for apartments, extra legal work for properties with messy titles or unapproved works, and lender fees that were not clearly disclosed upfront.
Yes, there are unpaid property taxes or debts you could potentially inherit when purchasing in Hobart, particularly overdue land tax on "general land" which Tasmania requires to be dealt with at transfer, and council rates arrears which your conveyancer should identify and adjust at settlement.
Buyers in Hobart can get scammed with fake listings or fake fees, most commonly through invoice fraud where criminals intercept payment instructions and redirect your deposit to a fraudulent account, so you should always verify trust account details by calling your conveyancer using a known phone number.
Fees usually not disclosed upfront in Hobart include strata report costs, building and pest inspection costs, lender application and settlement fees, and for foreign buyers the additional legal time required for FIRB compliance documentation.
In our property pack covering the property buying process in Hobart, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Hobart?
If your Hobart property has a tenant, you may face extra costs of AUD 200 to 500 (USD 135 to 335 or EUR 115 to 285) for your solicitor to review the lease, verify bond status, and ensure proper notices, plus potential property manager handover fees.
When you buy a tenanted property in Hobart, you inherit the existing lease and become the new landlord, which means you must honor the lease terms, maintain the bond correctly, and follow Tasmanian residential tenancy rules for any future notices or rent changes.
Terminating an existing lease immediately after purchase in Hobart is generally not possible unless the lease has specific break clauses, as Tasmanian tenancy law protects tenants and requires landlords to follow prescribed notice periods and grounds for termination.
A sitting tenant in Hobart can affect market value both positively (guaranteed rental income appeals to investors) and negatively (owner-occupiers may offer less or walk away), so tenanted properties sometimes sell at a small discount of 2% to 5% compared to vacant equivalents.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Hobart.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Hobart?
Which closing costs are negotiable in Hobart right now?
Negotiable closing costs in Hobart include your conveyancer's professional fee (sometimes), building and pest inspection prices, lender fees and loan package costs, and buyer's agent fees if you choose to hire one.
Closing costs that are fixed by law or regulation and cannot be negotiated in Hobart include Tasmania transfer duty, the 8% foreign investor duty surcharge, Land Titles Office registration fees (AUD 250.21 for transfer registration), and FIRB application fees for foreign buyers.
On negotiable fees in Hobart, buyers can typically achieve discounts of 5% to 15% on professional services like conveyancing or inspections, especially if bundling services, paying promptly, or purchasing during slower market periods.
Can I ask the seller to cover some closing costs in Hobart?
The likelihood of a seller agreeing to cover closing costs in Hobart is relatively low compared to some other markets, as Australian property transactions more commonly involve negotiating the purchase price itself rather than formal seller contributions to buyer fees.
When Hobart sellers do contribute, they are most commonly willing to adjust the purchase price, include appliances or furniture, or offer flexible settlement terms rather than directly paying your stamp duty or conveyancing fees.
Sellers in Hobart are more likely to accept covering costs or making concessions during buyer's market conditions, when properties have been listed for extended periods, when there are property issues that need addressing, or when the seller needs a quick settlement.
Is price bargaining common in Hobart in 2026?
As of early 2026, price bargaining is reasonably common in Hobart, with buyers able to negotiate on most listings, though the amount of room varies significantly depending on the property type, suburb, and how competitive the specific listing is.
Buyers in Hobart typically negotiate between 2% and 5% below the asking price on average (roughly AUD 14,000 to 35,000 off a AUD 700,000 property, or USD 9,380 to 23,450 or EUR 7,980 to 19,950), though premium properties in desirable suburbs like Battery Point or Sandy Bay may offer less flexibility.
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What monthly, quarterly or annual costs will I pay as an owner in Hobart?
What's the realistic monthly owner budget in Hobart right now?
A realistic monthly owner budget in Hobart for a typical house ranges from approximately AUD 400 to 800 (USD 270 to 535 or EUR 230 to 455) covering council rates, water and sewerage, insurance, and basic maintenance, with apartments adding strata levies that can push this higher.
The main recurring expense categories that make up this monthly budget in Hobart include council rates (billed annually but averaging AUD 150 to 250 per month), water and sewerage charges (AUD 80 to 150 per month), building and contents insurance (AUD 100 to 200 per month), and maintenance provisions.
The realistic low-to-high range for monthly owner costs in Hobart is AUD 350 to 1,200 (USD 235 to 805 or EUR 200 to 685), with the lower end representing a modest house in an outer suburb and the higher end representing a larger property or apartment with significant strata levies.
The monthly cost that tends to vary the most in Hobart is strata or body corporate levies for apartment and townhouse owners, which can range from AUD 200 to 600 per month depending on the building's age, facilities, and any special levy requirements for repairs or upgrades.
You can see how this budget affect your gross and rental yields in Hobart here.
What is the annual property tax amount in Hobart in 2026?
As of early 2026, the annual property tax in Hobart consists primarily of council rates (calculated from your property's capital value multiplied by the general rate), which typically range from AUD 1,800 to 4,000 (USD 1,205 to 2,680 or EUR 1,025 to 2,280) depending on your property value and location.
The realistic low-to-high range for annual property-related taxes in Hobart runs from approximately AUD 1,500 for a modest property to AUD 6,000 or more (USD 1,000 to 4,020 or EUR 855 to 3,420) for higher-value properties, with foreign investors potentially facing additional land tax and surcharges.
Council rates in Hobart are calculated using your property's capital value multiplied by the City of Hobart's general rate, plus additional charges for services like waste collection, fire service levies, and stormwater.
Owner-occupiers in Hobart who live in their property as their principal residence are generally exempt from Tasmania's land tax, but investment property owners and foreign investors may face annual land tax plus a 2% foreign investor land tax surcharge on assessed land value.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Hobart in 2026?
What tax rate applies to rental income in Hobart in 2026?
As of early 2026, foreign residents earning rental income from Hobart property are taxed using the ATO's foreign resident tax rates, which start at 30% on the first dollar earned (no tax-free threshold) and can reach marginal rates of 30% to 45% depending on your total Australian taxable income.
Yes, landlords in Hobart can deduct expenses from rental income taxes, with qualifying deductions including property management fees, repairs and maintenance, insurance premiums, council rates, water charges, and certain interest and borrowing costs on loans used to purchase the property.
After deductions, the realistic effective tax rate for typical Hobart landlords who are foreign residents usually falls somewhere between 25% and 40% of net rental income, depending on how many legitimate expenses offset the gross rent collected.
Foreign property owners in Hobart do pay a different rental income tax rate than Australian residents, as foreign residents have no tax-free threshold and face different marginal rate brackets starting at 30% compared to the resident rates that start at 0% up to AUD 18,200.
Do I pay tax on short-term rentals in Hobart in 2026?
As of early 2026, short-term rental income from Hobart properties (such as Airbnb or holiday lettings) is treated as taxable rental income by the ATO, meaning you must declare it and pay tax at your applicable marginal rate.
Short-term rental income in Hobart is not fundamentally taxed differently than long-term rental income from an income tax perspective, but short-term rentals typically have higher operating costs (platform fees, cleaning, linen replacement) that can be deducted, and you may face different local council regulations or strata rules.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Hobart.
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If I sell later, what taxes and fees will I pay in Hobart in 2026?
What's the total cost of selling as a % of price in Hobart in 2026?
As of early 2026, the total cost of selling a residential property in Hobart typically ranges from approximately 2.5% to 4.5% of the sale price, covering agent commission, marketing, legal fees, and any mortgage discharge costs.
The realistic low-to-high range for total selling costs in Hobart runs from about 2% (for a private sale with minimal marketing) up to 5% or more (for a premium auction campaign with extensive advertising and staging).
The specific cost categories that make up Hobart selling expenses include real estate agent commission (typically 2% to 3.5%), marketing and advertising (AUD 2,000 to 10,000), conveyancing on the sale side (AUD 800 to 1,500), and mortgage discharge fees if you have an existing loan (AUD 300 to 500).
The single largest contributor to selling expenses in Hobart is almost always the real estate agent's commission, which at typical rates of 2% to 3.5% can represent AUD 14,000 to 24,500 on a AUD 700,000 sale.
What capital gains tax applies when selling in Hobart in 2026?
As of early 2026, capital gains on the sale of residential property in Hobart are generally taxed at your marginal income tax rate, which for foreign residents means rates starting at 30% with no tax-free threshold applying to the gain.
The main exemption to capital gains tax in Australia is the principal residence exemption, which can eliminate CGT entirely if you lived in the property as your main home, but foreign residents have more limited access to this exemption and may lose it entirely if they are non-resident when they sell.
Foreign sellers in Hobart face additional friction through the foreign resident capital gains withholding regime, which requires 15% of the sale price to be withheld at settlement unless the seller provides a clearance certificate or variation, creating a significant cash flow impact even before the final CGT calculation is done.
Capital gain in Australia is calculated as the sale price minus your cost base (which includes the original purchase price, stamp duty paid, and the cost of eligible capital improvements), with the resulting gain added to your taxable income for the year you sell.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Hobart, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| State Revenue Office Tasmania - Rates of duty | Official Tasmanian government source for stamp duty rates. | We used it to calculate baseline transfer duty on Hobart purchases. We converted the sliding-scale table into practical percentage ranges. |
| SRO Tasmania - Foreign Investor Duty Surcharge | Official government page stating the 8% surcharge rate. | We used it to quantify the extra duty foreign buyers face. We added it to standard duty for realistic foreign buyer budgets. |
| Land Titles Office Tasmania - 2025-26 Fee Schedule | Official fee schedule for registering transfers and mortgages. | We used it to price mandatory registration items. We included these as small but often forgotten closing costs. |
| Australian Taxation Office - FIRB Residential Fees | Official ATO page listing foreign investment application fees. | We used it to budget FIRB application fees for typical Hobart prices. We mapped fee bands to realistic purchase scenarios. |
| ATO - Foreign Resident Tax Rates | Official tax rate table for foreign residents in Australia. | We used it to estimate marginal tax on rental income. We translated rates into practical ranges for non-resident landlords. |
| City of Hobart - Rates and Charges | Council's own page for how Hobart rates are calculated. | We used it to explain annual council rate calculations. We built realistic owner budget estimates from this data. |
| Tasmanian Economic Regulator - Regulated Prices | Official regulator schedule for TasWater charges. | We used it to estimate annual water and sewerage costs. We treated it as a neutral benchmark for owner budgets. |
| Hobart Community Legal Service - Conveyancing Costs | Reputable local legal service explaining buying costs. | We used it to anchor conveyancing fee ranges. We treated it as a reality check for professional fee budgets. |
| SRO Tasmania - Rates of Land Tax | Official Tasmanian schedule for annual land tax rates. | We used it to estimate land tax for investment properties. We combined it with the foreign surcharge for investor costs. |
| Treasury Ministers - Foreign Purchase Ban Announcement | Official government announcement on current policy timing. | We used it to reflect the 2025-2027 established dwelling ban. We avoided giving guidance assuming unrestricted resale access. |
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