Stamp duty in Victoria: a plain-English breakdown

Stamp duty is the tax you pay to the state government when you buy property. In Victoria it sits inside a broader category called "land transfer duty," and for most buyers it's the largest single transaction cost outside the deposit itself.

To see how it fits the bigger journey, read our step-by-step first-home buyer guide for Victoria.

This is a plain-English overview of how it works, what it costs, and what concessions exist.

What is stamp duty?

When property changes hands in Victoria, the State Revenue Office charges a duty on the transfer. It's paid by the buyer, at or just after settlement, and your conveyancer usually handles the payment as part of the settlement process.

The amount is based on the purchase price (or the market value, whichever is higher). The rate is tiered, similar to income tax brackets.

The standard rates

For a residential property bought by someone who is not eligible for any concession, current Victorian rates work in bands. The published rates apply to the dutiable value. Roughly:

• Up to $25,000: about 1.4%
• $25,001 to $130,000: a fixed amount plus 2.4% of the value above $25,000
• $130,001 to $960,000: a fixed amount plus 6% of the value above $130,000
• Above $960,000: a flat 5.5% of the full value (the bracket structure stops applying)

These rates change from time to time. The State Revenue Office publishes a land transfer duty calculator that gives you the current exact amount. For a quick rough estimate with first home buyer concessions included, try our Victorian stamp duty calculator.

What it works out to in practice

For a rough sense at common price points (standard rate, no concessions):

• $500,000 property: around $21,000
• $750,000 property: around $40,000
• $1,000,000 property: around $55,000
• $1,500,000 property: around $82,500

The cost goes up steeply as the price rises. Crossing certain thresholds adds disproportionately to the bill.

First home buyer concessions

Victoria offers significant stamp duty relief to first home buyers who meet the criteria. The relief is based on the dutiable value of the property:

• Under $600,000: full exemption (zero stamp duty)
• $600,001 to $750,000: sliding concession that scales down to zero at $750,000
• Over $750,000: no first home buyer concession applies

To qualify, all buyers on the title must:

• Be a first home buyer (never have owned residential property in Australia)
• Be at least 18 years old
• Be an Australian citizen or permanent resident (one of the buyers must qualify)
• Intend to live in the property as your home for at least 12 months, starting within 12 months of settlement

If you don't move in, or you sell before 12 months, the concession can be clawed back.

Other concessions

A few other Victorian concessions are worth knowing about:

• Principal place of residence (PPR) concession: For properties under $550,000 where you'll live in them, a smaller concession applies even if you're not a first home buyer
• Off-the-plan concession: For off-the-plan purchases, duty is calculated on the land value at the time of contract, not the finished home value. This can be a major saving on new builds. The concession is available to first home buyers and PPR buyers within thresholds.
• Pensioner concession: One-off concession available to eligible pension card holders buying a home to live in, under $750,000
• Family farm transfer concession: Specific rules for intergenerational transfers of farming property

Foreign buyer surcharge

If a buyer on the title is a foreign purchaser (not an Australian citizen, permanent resident, or NZ citizen with a special category visa), an additional duty applies on top of standard rates. The surcharge has been 8% historically and has changed over time, so check the current foreign purchaser additional duty rate.

When and how it's paid

Stamp duty is generally paid at settlement. Most Victorian settlements now happen electronically (through PEXA), and duty is collected as part of that settlement transaction, with the funds coming from the same pool as your purchase payment. Your conveyancer typically handles it on your behalf.

You can pay duty yourself, but in practice it's almost always handled by the conveyancer because the transfer can't be registered without proof of payment.

How to plan for it

A few practical tips:

1. Use the SRO calculator at sro.vic.gov.au early in your house-hunting. Knowing the actual cost stops sticker shock at the offer stage.
2. Don't forget it in your deposit calculation. Your "deposit" really means deposit + stamp duty + legal fees + inspections. A 10% deposit on a $700,000 property is $70,000, but with stamp duty and costs you may need $35,000 more on top.
3. Check concession eligibility carefully. First home buyer concessions are generous but have firm criteria. If you've owned even a small share of a property before (including with a former partner), you may not qualify. The First Home Owner Grant has its own separate criteria.
4. Off-the-plan can be cheaper on duty. If you're buying new, ask the developer or your conveyancer to estimate the off-the-plan concession at the time of contract.

What stamp duty isn't

Stamp duty is paid once, at purchase. It is not:

• An ongoing tax (land tax is a separate annual charge, and the principal place of residence exemption keeps most homes out of it)
• Refundable if you sell quickly
• The same as GST (some new builds attract GST as well)
• Deductible against your income (for owner-occupied homes)

Investors may have some treatment differences. A registered tax adviser can confirm the specifics for an investment property.

A practical mindset

Stamp duty is just one of those costs that comes with the territory of buying in Australia, and the rules vary a lot between states. It's unavoidable for most buyers, but the concessions are worth checking carefully because the savings can be substantial.

If you're a first home buyer eyeing properties just over $600,000, sometimes a slightly cheaper place delivers thousands more in your pocket because of the concession threshold. It's worth running the numbers both ways.

Sources

• State Revenue Office Victoria: Land transfer duty: the authority that sets and publishes the current duty rates and bands, with an official calculator.
• SRO: First home buyer duty exemption or concession: the $600,000 exemption and the sliding concession to $750,000, and who qualifies.
• SRO: Principal place of residence concession: the PPR concession thresholds and rates.
• SRO: Off-the-plan duty concession: how duty on off-the-plan purchases is assessed on land value at the contract date.
• SRO: Foreign purchaser additional duty: the surcharge for foreign purchasers and the current rate.
• SRO: Land tax: the separate annual land tax, and the principal-place-of-residence exemption that keeps most homes out of it.

Sources verified 25 July 2026. Duty rates, thresholds, and concession eligibility change with state budgets; confirm the current figures with the State Revenue Office or your conveyancer before relying on them.