VIC Stamp Duty Calculator 2026

How Stamp Duty Works in Victoria

Stamp duty in Victoria, officially called land transfer duty, is a state government tax administered by the State Revenue Office (SRO) Victoria. It applies to every property transfer in the state, including houses, apartments, townhouses, vacant land, and commercial properties. Land transfer duty is one of the largest upfront costs when purchasing property in Victoria and must be factored into your purchase budget from the outset.

Victorian land transfer duty is calculated on the dutiable value of the property, which is the greater of the purchase price or the market value. The duty is assessed using a marginal rate system with five brackets, starting at 1.4% for properties valued up to $25,000 and rising to 6.5% for the portion above $2 million. This means the effective rate of duty increases progressively as the property value rises.

Current Victorian Transfer Duty Rates

The 2026 Victorian land transfer duty rates consist of five brackets. For a typical Melbourne property purchased at $800,000, the land transfer duty would be approximately $36,370. The rates are set by the Victorian Government and published by the SRO Victoria. The duty applies to both new and established properties and is calculated the same way for houses, apartments, and townhouses.

Properties valued above $2 million attract the premium rate of 6.5% on the portion above this threshold. Victoria has some of the higher stamp duty rates in Australia, particularly for properties in the $500,000 to $1,000,000 range where the 5% bracket applies to a large portion of the price.

First Home Buyer Exemptions and Concessions

Victoria offers generous first home buyer stamp duty concessions. Eligible first home buyers purchasing a property valued at $600,000 or less receive a full exemption from land transfer duty, meaning they pay no duty at all. For properties valued between $600,001 and $750,000, a concessional rate applies on a sliding scale that gradually increases towards the full duty amount.

To qualify, you must be an Australian citizen or permanent resident, be 18 years or older, and you (and your spouse or partner) must never have owned property in Australia. You must move into the property within 12 months of settlement and live there for a continuous period of at least 12 months. The property must be a residential dwelling -- vacant land is not eligible for the first home buyer duty exemption (though a separate vacant land concession may apply).

In addition to the stamp duty exemption, Victorian first home buyers may be eligible for the First Home Owner Grant (FHOG) of $10,000 for new homes valued up to $750,000. This is a separate cash grant that can be used alongside the duty exemption.

Foreign Buyer Surcharge

Foreign purchasers of residential property in Victoria are subject to an additional 8% surcharge on top of the standard land transfer duty. This surcharge applies to individuals who are not Australian citizens or permanent residents, as well as foreign corporations and trustees of foreign trusts. The 8% surcharge is calculated on the full dutiable value of the property.

For example, a foreign buyer purchasing a $900,000 apartment in Melbourne would pay standard duty of approximately $41,370 plus an additional surcharge of $72,000, bringing the total duty to approximately $113,370. Victoria also imposes an annual absentee owner surcharge on land tax for foreign owners, adding further ongoing costs.

Off-the-Plan Concessions

Victoria offers an off-the-plan concession that allows eligible buyers to reduce the dutiable value of the property by the amount of any construction or refurbishment that has not yet occurred at the date of the contract. This means duty is effectively calculated on the land value plus any completed construction at the contract date, rather than the full contract price. The concession applies to both principal place of residence and investment property purchases.

For a $650,000 off-the-plan apartment where only $300,000 of work has been completed at contract signing, duty could be calculated on $300,000 rather than $650,000. This can save buyers thousands of dollars and is one of the key advantages of purchasing off-the-plan in Victoria.

Vacant Land Rates

Standard land transfer duty rates apply to vacant land purchases in Victoria. Because duty is calculated only on the land purchase price and not on subsequent building costs, purchasing vacant land and constructing a home can result in significantly lower duty compared to buying an equivalent established property. For example, buying land for $400,000 and building a $400,000 home means duty is calculated on $400,000 rather than $800,000.

Victoria also offers a principal place of residence concession for vacant land purchases up to $550,000 (with a sliding scale concession up to $750,000), provided you intend to build your home on the land within specified timeframes.

Investment vs Owner-Occupier

In Victoria, the standard land transfer duty rates are the same for owner-occupiers and investors. However, investors cannot access first home buyer exemptions or concessions, and they will always pay the full standard rate. Owner-occupiers who qualify as first home buyers can save up to $31,000 or more in duty on properties valued at $600,000 or below.

For investment properties, stamp duty is not tax-deductible as an immediate expense. Instead, it forms part of the cost base of the property for capital gains tax (CGT) purposes. This means the duty paid will reduce your taxable capital gain when you eventually sell the investment property.

How and When to Pay

In Victoria, land transfer duty must generally be paid within 30 days of the property settlement. For electronic conveyancing transactions (which are now standard), duty must be paid before the transfer can be registered with Land Use Victoria. Your solicitor or conveyancer will arrange payment as part of the settlement process.

Payment can be made electronically through the SRO Victoria's online portal or through your legal representative. If you are unable to pay the full amount at settlement, some lenders will allow you to capitalise stamp duty into your home loan, though this increases your loan amount, your LVR, and may trigger Lenders Mortgage Insurance (LMI).