How Stamp Duty Works in Victoria
In Victoria, stamp duty is formally known as land transfer duty and is administered by the State Revenue Office (SRO). It's a state tax applied to the purchase of real property and certain other dutiable transactions. Duty is typically paid at settlement and is calculated on the greater of the property's purchase price or its market value.
Victoria uses a sliding scale — lower-value properties attract lower rates, and the rate increases as the property value rises. Different rates also apply depending on whether the property will be your principal place of residence (PPR), an investment, or a commercial acquisition.
Standard Victorian Duty Rates (2025)
| Dutiable Value | Duty Payable |
|---|---|
| Up to $25,000 | 1.4% of the dutiable value |
| $25,001 – $130,000 | $350 + 2.4% of excess over $25,000 |
| $130,001 – $440,000 | $2,870 + 5% of excess over $130,000 |
| $440,001 – $550,000 | $18,370 + 6% of excess over $440,000 |
| $550,001 – $960,000 | $28,070 + 6% of excess over $550,000 |
| Over $960,000 | 5.5% of the total dutiable value |
First Home Buyer Concessions in Victoria
Victoria offers significant duty relief for eligible first home buyers:
New and Off-the-Plan Properties
First home buyers purchasing a new property or buying off the plan receive a full duty exemption on properties up to $600,000. A sliding concession applies between $600,001 and $750,000, reducing to zero at $750,001. This is the most generous concession available — a $600,000 new home that would normally attract around $31,070 in duty is purchased duty-free.
Existing Properties
For existing properties, first home buyers receive a full duty exemption on purchases up to $600,000, and a reduced duty on properties valued between $600,001 and $750,000. Above $750,000, full duty applies. Note this threshold hasn't moved in several years and excludes much of the Melbourne market.
Eligibility Requirements
To claim the first home buyer concession you must: be at least 18 years old, be an Australian citizen or permanent resident, never have owned residential property in Australia previously (this includes any Australian state or territory), and intend to use the property as your principal place of residence within 12 months of purchase.
Worked Examples
Example 1 — First Home Buyer, New Apartment $580,000
| Item | Amount |
|---|---|
| Purchase price | $580,000 |
| Standard duty (at $550k–$960k rates) | $28,070 + 6% of $30,000 = $29,870 |
| First home buyer exemption (new property under $600k) | –$29,870 |
| Duty payable | $0 |
This buyer pays no stamp duty — a saving of nearly $30,000.
Example 2 — Owner-Occupier Upgrading to $900,000 Home
| Item | Amount |
|---|---|
| Purchase price | $900,000 |
| Duty at $550k–$960k rate | $28,070 + 6% of ($900k – $550k) |
| Duty = $28,070 + $21,000 | $49,070 |
| Principal place of residence concession | Nil (above $550k threshold — PPR concession doesn't apply at this price) |
| Duty payable | $49,070 |
Example 3 — Foreign Investor Purchasing $1,200,000 Investment Property
| Item | Amount |
|---|---|
| Purchase price | $1,200,000 |
| Standard duty (5.5% of total for properties over $960k) | $66,000 |
| Foreign purchaser additional duty (8% of $1.2M) | $96,000 |
| Total duty payable | $162,000 |
The foreign investor surcharge nearly doubles the effective duty rate.
Foreign Purchaser Duty Surcharge
Foreign purchasers of residential property in Victoria pay an additional duty surcharge of 8% of the dutiable value, on top of standard rates. A foreign purchaser is broadly defined as a person who is not an Australian citizen or permanent resident, or a corporation/trust with certain foreign connections.
Foreign purchasers are also subject to the Vacant Residential Land Tax (VRLT) if the property is left vacant for more than 6 months in a calendar year. The annual Land Tax rate for foreign entities also carries a surcharge of 2% per year on the taxable value of their Victorian residential landholdings.
Frequently Asked Questions
Disclaimer: Stamp duty rates and concessions are subject to change. This calculator reflects published SRO rates as of 2025 and is for estimation purposes only. Individual circumstances, property type, and concession eligibility can significantly affect actual duty payable. Always confirm figures with your conveyancer or the State Revenue Office Victoria.
Related Property & Finance Tools
- Stamp Duty Calculator NSW — NSW transfer duty with first home buyer exemptions up to $800,000
- Stamp Duty Calculator QLD — Queensland transfer duty and $30,000 FHOG
- Mortgage Calculator Australia — Calculate your home loan repayments and total interest
- Income Tax Calculator — Estimate your take-home pay for mortgage budgeting