Victorian Stamp Duty Explained. Rates Concessions and How to Calculate It

Victoria has the highest top marginal rate of land transfer duty in mainland Australia and the most complicated concession matrix. Two parallel rate schedules apply depending on whether the property is the buyer's principal place of residence, the first home buyer threshold sits well below the median Melbourne house price, and a temporary off-the-plan concession is in force. This guide cuts through the layers and shows exactly how the calculation works in 2026.

AgentBridge publishes this for buyers and developers active in Victoria who need the duty number before they finalise a budget. Figures are sourced directly from the State Revenue Office Victoria and current as at 22 May 2026. Confirm the live position with the SRO before settlement, particularly on the off-the-plan concession which has been extended on a temporary basis.

What Stamp Duty Is in Victoria

Land transfer duty (the formal name in Victoria) is a state tax on the dutiable value of a property transfer. The dutiable value is the higher of the contract price or the unencumbered market value of the property. The State Revenue Office Victoria (SRO) administers the tax under the Duties Act 2000.

The buyer pays the duty. It falls due within 30 days of settlement for an existing property, or within 30 days of nomination or transfer for off-the-plan purchases. Late payment attracts interest and penalty tax.

Victoria operates two distinct duty rate schedules. A discounted principal place of residence (PPR) rate applies up to $550,000 for buyers who will occupy the property. A higher general rate applies to investment, commercial and high-value PPR purchases. First home buyers, foreign purchasers, pensioners and off-the-plan buyers have additional layers on top.

The 2026 Victorian Stamp Duty Rate Schedule

Two schedules apply. Both are current for contracts entered into in 2026.

Principal Place of Residence (PPR) Rate. Applies to buyers who will occupy the property as their main home and the dutiable value is $550,000 or less.

Property Value Bracket	Duty Rate
$0 to $25,000	1.4% of dutiable value
$25,001 to $130,000	$350 plus 2.4% over $25,000
$130,001 to $440,000	$2,870 plus 5.0% over $130,000
$440,001 to $550,000	$18,370 plus 6.0% over $440,000
Over $550,000	PPR concession ends. General rate applies.

General (non-PPR) Rate. Applies to investment purchases, commercial property and PPR purchases over $550,000.

Property Value Bracket	Duty Rate
$0 to $25,000	1.4% of dutiable value
$25,001 to $130,000	$350 plus 2.4% over $25,000
$130,001 to $960,000	$2,870 plus 6.0% over $130,000
$960,001 to $2,000,000	5.5% of dutiable value (flat)
Over $2,000,000	$110,000 plus 6.5% over $2,000,000

The general rate has applied since 1 July 2021. The flat 5.5% band between $960,000 and $2,000,000 is unusual: it is not a marginal rate but applies to the entire dutiable value once the property crosses $960,000. This creates a small notch effect just above that threshold.

Worked Example. Calculating Duty on a $750k and $1.5M Purchase

Two worked examples show how the bracket method works in practice.

Example 1. $750,000 owner-occupied home in suburban Melbourne.

The PPR rate caps at $550,000, so this purchase falls under the general rate. The $750,000 value sits in the $130,001 to $960,000 bracket. Duty is $2,870 plus 6.0% on the amount over $130,000.

The amount over $130,000 is $620,000. At 6.0% the variable component is $37,200. Total duty payable is $2,870 plus $37,200, or $40,070.

For an eligible first home buyer purchasing this same property, the concession applies on the sliding scale between $600,001 and $750,000. Refer to the First Home Buyer section below for that calculation.

Example 2. $1,500,000 investment apartment in Melbourne.

The $1,500,000 purchase falls in the flat 5.5% band between $960,000 and $2,000,000. Duty is 5.5% of the total dutiable value, not just the amount over $960,000.

5.5% of $1,500,000 is $82,500.

This is materially higher than the equivalent NSW or QLD duty on the same property. Foreign purchasers add a further 8% surcharge on top, set out below.

First Home Buyer Concession or Exemption. Who Qualifies and What You Get

The Victorian first home buyer duty concession has 3 tiers, all tied to dutiable value.

• Full exemption for properties valued at $600,000 or less.
• Sliding-scale concession for properties between $600,001 and $750,000. The concession reduces gradually as the price rises.
• No concession above $750,000.

To qualify, the buyer must be a natural person aged 18 or over, at least one applicant must be an Australian citizen or permanent resident, and neither the buyer nor their spouse can have previously owned residential property anywhere in Australia. At least one applicant must occupy the home as their principal place of residence for a continuous period of 12 months commencing within 12 months of settlement.

The exemption and concession apply to both new and established homes. This is more generous than several other states where new builds are treated differently from existing stock.

Off-the-Plan Concession

Victoria operates an off-the-plan duty concession that reduces the dutiable value by the construction cost component still outstanding at the contract date. In practice, this can deliver a large saving on apartments and townhouses purchased before construction starts, because duty is calculated on the land value plus completed construction only, not on the final retail price.

The standard off-the-plan concession applies only to buyers who will occupy the property as their principal place of residence and meet either:

• The first home buyer threshold (dutiable value at or under $750,000), or
• The PPR threshold (dutiable value at or under $550,000).

A temporary expanded concession applies to strata apartments and townhouses (not detached houses) for contracts signed between 21 October 2024 and 21 October 2026. This temporary measure extends the off-the-plan concession to investors and removes the price cap. Buyers under this temporary concession do not need to occupy the property and there is no first-home-buyer test.

The temporary concession was extended for a further 12 months by the State Taxation Acts Amendment Act 2025 (Royal Assent 24 June 2025), and then extended again to 21 April 2027 by the 2026-27 Victorian State Budget (announced 5 May 2026, pending legislation). As at June 2026, the concession remains active. Confirm the precise end date and eligible property types with the SRO before signing any contract. Source: State Revenue Office Victoria.

Foreign Purchaser Surcharge. What Applies

Foreign purchasers acquiring residential property in Victoria pay foreign purchaser additional duty (FPAD) of 8% of the dutiable value, charged on top of standard land transfer duty. This rate has applied since 1 July 2019.

A foreign purchaser includes individuals who are not Australian citizens or permanent residents, foreign corporations and foreign trusts. The surcharge applies to residential property only, defined broadly to include land where the buyer intends to construct a residence.

On the $1.5M example above, an 8% foreign purchaser surcharge adds $120,000 to the duty bill. Total duty for a foreign buyer becomes $82,500 plus $120,000, or $202,500.

Other Concessions Worth Knowing

Several other transfer duty concessions and exemptions exist in Victoria outside the first home buyer scheme.

Pensioner concession. Eligible pensioners and concession cardholders receive a one-off duty reduction when buying a home as their principal place of residence. The full exemption applies up to a dutiable value of $330,000 and a tapered concession applies between $330,001 and $750,000. Only one pensioner concession per applicant in a lifetime.

Off-the-plan PPR concession. Detailed above. Reduces dutiable value by outstanding construction costs.

Spousal and de facto transfers. Transfers between spouses or domestic partners of an interest in a principal place of residence are exempt, subject to occupation and ownership conditions. Family Court orders and binding financial agreements following separation can also trigger exemptions.

Deceased estate transfers. Transfers to a beneficiary in accordance with a will or under the laws of intestacy attract no duty.

Family farm transfers. Transfers of farming property between family members may qualify for a full exemption, subject to use and relationship conditions.

City of Melbourne residential concession. A 50% duty concession applies to residential property purchases in the City of Melbourne local government area with a dutiable value up to $1,000,000, available to all buyers (not just first home buyers). The concession applies to new builds and significant refurbishments and was introduced as a city-revitalisation measure.

Regional commercial and industrial concession. A 50% concession applies to commercial, industrial and extractive industry property in regional Victoria.

How and When You Pay

Land transfer duty in Victoria is assessed by the SRO based on the executed contract. The conveyancer or solicitor acting for the buyer lodges the contract through the Duties Online system, which produces an assessment notice.

Duty must be paid before the transfer can be registered with Land Use Victoria. In practice, payment is settled through the buyer's conveyancer at or shortly before settlement, drawn from the buyer's settlement funds.

The strict legal deadline is 30 days after settlement. Late payment attracts daily interest at the market rate plus penalty tax that can reach 25% of the duty payable.

Speak to a licensed conveyancer or solicitor for advice on timing, the off-the-plan concession and any other concessions that may apply to your specific purchase.

Frequently Asked Questions

How much stamp duty does a first home buyer pay on a $700,000 property in Victoria? The buyer sits in the sliding-scale concession band between $600,001 and $750,000. The concession reduces the standard duty payable on a graduated basis. Exact duty depends on the SRO's calculation but is materially less than the full duty of around $37,070. Use the SRO online duty calculator for the precise figure.

Is the off-the-plan concession available to investors in Victoria? Standard rules limit the off-the-plan concession to owner-occupiers under either the PPR or first home buyer threshold. However, a temporary expanded concession running from 21 October 2024 to 21 October 2026 covers strata apartments and townhouses for all buyers (including investors) with no price cap. Detached houses and existing properties remain ineligible.

What stamp duty applies if a foreign buyer purchases a $1,000,000 apartment in Melbourne? Standard general rate duty on $1,000,000 is 5.5% of the total value, or $55,000. Foreign purchaser additional duty at 8% adds $80,000. Total duty payable is $135,000.

Does the Victorian pensioner duty concession apply to investment property? No. The pensioner concession applies only to the purchase of a principal place of residence. Eligible pensioners receive a full exemption up to $330,000 and a tapered concession to $750,000. Only one concession per applicant in a lifetime.

When did the Victorian foreign purchaser surcharge increase to 8%? The current 8% rate has applied to contracts entered into on or after 1 July 2019. Earlier contracts attracted a lower 7% rate, and earlier still 3%. The current 8% applies to all residential property purchases by foreign persons regardless of intended use.

Related Resources

• Australian Stamp Duty Explained State by State — AgentBridge national pillar on transfer duty across all 8 states and territories.
• How to Buy Property in Victoria — the full Victorian purchase process from offer to settlement.
• Victoria First Home Owner Grant and Concessions for 2026 — companion guide to the FHOG and the wider Victorian first home buyer support landscape.

---

Last reviewed: 22 May 2026. Figures sourced from State Revenue Office Victoria. This article is general information only and does not constitute financial product advice. Confirm current rates and your eligibility directly with the SRO or a licensed conveyancer before signing any contract.