What Is Stamp Duty in Victoria?

Stamp duty -- officially called "land transfer duty" in Victoria -- is a state government tax charged when you buy property. It is calculated on the purchase price or market value of the property (whichever is greater) and must be paid as part of the settlement process.

For a median-priced Melbourne home around $900,000, stamp duty comes to approximately $49,000. That is a significant upfront cost on top of your deposit, legal fees, and inspections. If you are planning to bid at auction, where there is no cooling-off period, knowing your stamp duty obligation in advance is essential.

VIC Stamp Duty Rates (2026)

Victoria uses a tiered system where different portions of the purchase price are taxed at increasing rates. The following table shows the current general rates for property transfers:

Property Value	Rate
$0 -- $25,000	1.4%
$25,001 -- $130,000	$350 + 2.4% of excess over $25,000
$130,001 -- $960,000	$2,870 + 6.0% of excess over $130,000
$960,001 -- $2,000,000	5.5% of the total value
Over $2,000,000	$110,000 + 6.5% of excess over $2,000,000

Note that for properties between $960,001 and $2,000,000, the duty is calculated as a flat 5.5% of the entire purchase price -- not just the excess above $960,000.

Use our stamp duty calculator to get an instant estimate for your specific purchase price.

First Home Buyer Duty Exemption

Victoria offers a full stamp duty exemption for eligible first home buyers purchasing a property valued at $600,000 or less. This applies to both new and established homes, as long as you meet the eligibility criteria.

At the $600,000 threshold, this exemption saves you approximately $31,070 in stamp duty -- a substantial reduction in your upfront costs.

Eligibility Requirements

To qualify for the first home buyer exemption or concession, you must:

Be an individual (not a company or trust)
Be at least 18 years old
Be an Australian citizen or permanent resident
Not have previously owned a home in Australia (including investment properties)
Move into the property within 12 months and live there continuously for at least 12 months

If purchasing as a couple, both applicants must meet all criteria.

First Home Buyer Concession ($600,001 -- $750,000)

If the property value falls between $600,001 and $750,000, first home buyers receive a sliding-scale concession rather than a full exemption. The discount reduces proportionally as the property value increases toward $750,000.

The concession is calculated using this formula:

Concession = Full duty x (1 - (Property value - $600,000) / $150,000)

For example, on a $675,000 property, the concession covers 50% of the duty. At $725,000, it covers roughly 17%. Once the property value exceeds $750,000, no concession applies and you pay standard rates.

This sliding scale means that buying just above a threshold can cost significantly more. A property at $600,000 pays zero duty, while one at $610,000 pays only a small fraction -- but at $750,001, you owe the full amount.

First Home Owner Grant (FHOG)

Separate from stamp duty relief, Victoria offers a $10,000 First Home Owner Grant for first home buyers purchasing or building a new home valued up to $750,000. This grant applies only to new properties -- not established homes -- and can be claimed alongside the stamp duty exemption or concession.

Off-the-Plan Concession

Buyers purchasing an apartment or townhouse off the plan in Victoria may be eligible for a stamp duty concession. Under the off-the-plan concession:

Duty is calculated on the contract price minus the construction component that has not yet been completed at the contract date
In practice, this means you pay duty on a lower value (closer to the land component), reducing your upfront costs
The concession applies to both owner-occupiers and investors, though the calculation method differs

For a $700,000 off-the-plan apartment where the land value is $400,000, you could pay duty on $400,000 rather than the full $700,000 -- a saving of roughly $18,000 in stamp duty.

This makes off-the-plan purchases one of the most tax-efficient ways to enter the Melbourne property market.

Foreign Purchaser Additional Duty

Non-Australian buyers (including temporary visa holders) must pay an additional 8% surcharge on top of standard stamp duty. This applies to all residential property purchases in Victoria.

For a $900,000 property, the additional duty would be $72,000, on top of the standard duty of approximately $49,000. That brings the total duty to around $121,000 -- a substantial amount that foreign buyers must factor into their budgets.

Some exemptions and reductions may apply under specific bilateral tax treaties or visa categories. Seek professional advice if you are a foreign purchaser.

Pensioner Concession

Eligible pensioners and concession card holders in Victoria may receive a stamp duty concession of up to $750 on a property used as their principal place of residence. To qualify:

You must hold a valid Pensioner Concession Card or Health Care Card
The property must become your principal residence
Only one concession is available per transaction

While $750 is modest compared to first home buyer savings, it still reduces the cost of downsizing or relocating in retirement.

VIC vs. NSW: Stamp Duty Comparison

How does Victoria compare to New South Wales? Here is a side-by-side look at stamp duty on common property values:

Purchase Price	VIC Duty	NSW Duty	Difference
$500,000	$25,070	$17,835	VIC pays $7,235 more
$750,000	$40,070	$29,285	VIC pays $10,785 more
$1,000,000	$55,000	$40,490	VIC pays $14,510 more
$1,500,000	$82,500	$63,240	VIC pays $19,260 more

Victoria generally charges higher stamp duty than NSW, particularly in the $500,000 to $1,500,000 range where the 6% marginal rate applies. However, both states offer meaningful first home buyer relief.

For a detailed breakdown of NSW rates and concessions, see our NSW stamp duty guide.

When Do You Pay Stamp Duty?

In Victoria, stamp duty must be paid within 30 days of the settlement date (not the contract date as in some other states). Your solicitor or conveyancer will typically handle the payment through the State Revenue Office as part of settlement.

If you are buying at auction, settlement usually occurs 30 to 90 days after auction day. The duty is due within 30 days of that settlement.

How to Budget for Stamp Duty

Stamp duty should be factored into your auction budget from day one -- not treated as an afterthought. Here is a practical approach:

Start with your total available funds (savings plus pre-approved loan amount)
Subtract stamp duty for your target price range
Subtract other buying costs (legal fees, inspections, moving costs)
The remaining amount is your true bidding limit

Use our stamp duty calculator to handle step 2 instantly. Then use the total cost calculator to estimate all buying costs together, including stamp duty, legal fees, and inspections.

Smart Bid's auction setup wizard helps you convert these numbers into clear comfort, stretch, and limit zones so you know exactly when to keep bidding and when to stop.

Key Takeaways

Victorian stamp duty ranges from 1.4% to 6.5% depending on the purchase price
First home buyers pay no duty on properties up to $600,000, with a sliding concession up to $750,000
Off-the-plan buyers can reduce their duty by paying on the land component only
Foreign buyers face an additional 8% surcharge on all residential purchases
VIC stamp duty is generally higher than NSW for properties in the $500,000 to $1,500,000 range
Budget for stamp duty upfront using a calculator -- it is one of the largest costs after the property itself

Planning to bid at auction in Melbourne? Smart Bid helps you set your budget zones with stamp duty already factored in.

Stamp Duty in Victoria 2026: Rates, Concessions & Calculator