NSW Premier Dominic Perrottet is expected to outline the plan as part of the state Budget today.

Elders Real Estate Albury-Wodonga sales director Dean Star said it "would be great" to see the tax abolished.

"It's something that's been spoken about for a long, long time," he said.

Stamp duty is a lump sum that buyers pay the government upon purchasing a property.

The exact amount varies depending on the price of the property, but in regional areas, it can range from between $8000 to $20,000 in the present market.

"Hopefully, the government can produce the goods here and really give NSW buyers a kick along; it would be great to see it in Victoria at some stage as well," Mr Star said.

Instead of borrowing money to go towards a stamp duty payment, home buyers would be able to contribute that loan towards the price of the actual home, something Mr Star believes will be "a big relief", particularly for younger buyers.

"It will certainly give them an incentive to really help out the whole buying stream," he said.

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First National Real Estate Bonnici and Associates director William Bonnici said replacing stamp duty with a form of land tax meant there would be an extra cost that's "not dissimilar to rates or electricity".

"While it's less upfront, it means that home ownership is going to have an additional cost moving forward," he said.

Mr Bonnici agrees with scrapping stamp duty, but also says "ongoing infinite land tax" is not a long-term solution.

"It might assist with people who might flip homes and not hold onto them, ultimately, people are going to have to hold on to a home," he said.

"It would certainly help them from a deposit perspective, and getting into the market, but make no mistake, banks will still need to take into consideration serviceability of a loan.

"The serviceability costs are now going to increase."

The plan to move away from stamp duty would allow new buyers to choose between paying stamp duty or an annual land tax, according to initial reports.

Properties valued within the top 20 per cent of prices would not be eligible to opt in for land tax.

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