Stamp Duty in Victoria 2025-26: Rates, Concessions & Changes

Victoria's land transfer duty is calculated on a progressive scale based on the dutiable value of the property. For general residential property, rates start at 1.4% on the first $25,000 and increase through several brackets up to 6.5% on properties valued over $2 million.

Worth knowing: Victoria also applies a premium duty rate of 6.5% on properties above the $2 million threshold. On a median Melbourne house price of approximately $1.05 million, stamp duty comes to around $55,000. For units at the median of roughly $600,000, you would pay approximately $31,070.

These rates make Victoria one of the more expensive states for stamp duty, particularly at higher property values where the premium rate kicks in earlier than in some other jurisdictions.

Victorian first home buyers receive a full stamp duty exemption on properties valued up to $600,000. A sliding-scale concession applies for properties valued between $600,001 and $750,000, reducing the duty payable on a proportional basis.

To be eligible, you must be purchasing your first home, be an Australian citizen or permanent resident, and intend to live in the property as your principal place of residence for at least 12 continuous months within the first year of settlement. In addition, the $10,000 First Home Owner Grant (FHOG) is available for newly built homes valued up to $750,000 in metropolitan areas and $750,000 in regional Victoria. These concessions combined can save a first home buyer tens of thousands of dollars on their buy.

Victoria offers a significant off-the-plan concession where buyers pay stamp duty only on the contract price less the construction costs that have not yet been incurred at the date of the contract. Essentially, you pay duty on the land value and any completed construction at the time you sign, rather than the total finished price.

Bottom line? This concession applies to both owner-occupiers and investors, making it one of the most generous off-the-plan schemes in the country. For a $650,000 off-the-plan apartment where construction has not yet commenced, the dutiable value might be reduced to $280,000, saving approximately $16,000 in duty. The concession is automatically applied when the contract is submitted for assessment by the State Revenue Office.

Investment property buyers in Victoria pay the full standard land transfer duty rates with no concessions. If you already own a residential property and are purchasing an additional one, standard rates apply regardless of your intended use.

Foreign purchasers face an additional 8% surcharge on top of standard duty, which was introduced to address housing affordability concerns and has remained in place since 2015. Absentee owner surcharge of 4% also applies to the land tax assessment for foreign owners. Trusts and companies purchasing residential property are assessed at the same standard rates, though discretionary trusts may attract the foreign purchaser additional duty if any potential beneficiary is a foreign person. Pretty straightforward once you know.

Victoria has undergone several stamp duty changes in recent years. The state government introduced a temporary 25% stamp duty discount for new residential properties in inner and middle Melbourne suburbs to stimulate the property market during the COVID recovery period, though this has since expired.

More recently, Victoria introduced a windfall gains tax on rezoned land and increased the premium duty rate. The government has periodically adjusted first home buyer thresholds to keep pace with rising property prices. In terms of future reform, there have been calls to move towards a broad-based land tax similar to the ACT's model, but no firm plans have been announced.

So what does this actually mean? Buyers should check the State Revenue Office website for the latest rates and thresholds, as these can change in each state budget.

Our free Stamp Duty Calculator automatically applies the correct Victorian rates and accounts for first home buyer exemptions, off-the-plan concessions, and foreign buyer surcharges. Simply select Victoria as the state, enter the property buy price, indicate whether you're a first home buyer, and the calculator will show your total duty payable.

You can also compare this with NSW or Queensland to understand how duty varies across states. Remember that Victorian stamp duty must be paid within 30 days of settlement, and late payments attract penalty interest. If you're purchasing at auction, the contract date is the auction date, so factor duty into your bidding budget.

Consult a conveyancer or solicitor if your buy involves unusual circumstances such as a related-party transfer or commercial-to-residential conversion.