Victoria’s land transfer duty is a state tax levied on property purchases, with rates unchanged for the 2026-27 financial year. The duty scale begins at 1.4% for properties valued at $25,000 or less and rises to 6.5% on the portion above $2,000,000, with a flat 5.5% rate applying to the $960,001 to $2,000,000 band. First home buyers purchasing a new or existing home valued at $600,000 or less pay no transfer duty at all, with a partial concession phasing out to $750,000. A concessional principal place of residence (PPR) scale also reduces duty for owner-occupiers purchasing homes at or below $550,000. Foreign purchasers face an additional duty of 8% on top of standard rates. The First Home Owner Grant (FHOG) provides a separate $10,000 for newly built homes up to $750,000. For a typical $650,000 first home, the duty payable after the concession is approximately $11,357, compared with around $34,070 under standard rates. This article details all current Victorian duty rates, concessions, and requirements as at July 2026.
Victoria Land Transfer Duty Rates for 2026-27
The State Revenue Office (SRO) Victoria applies the following general duty scale to all property transfers:
- Dutiable value of $25,000 or less: 1.4% of the dutiable value.
- $25,001 to $130,000: $350 plus 2.4% of the amount over $25,000.
- $130,001 to $960,000: $2,870 plus 6% of the amount over $130,000.
- $960,001 to $2,000,000: a flat rate of 5.5% of the total dutiable value.
- Over $2,000,000: $110,000 plus 6.5% of the amount over $2,000,000.
Note the unusual structure of the $960,001 to $2,000,000 bracket, which applies a flat percentage to the entire value rather than a marginal rate. This means a purchaser of a $1,000,000 property pays $55,000 in duty, while a purchaser at $960,000 pays $52,670 under the marginal scale — a relatively small jump at the bracket boundary.
PPR Concessional Scale
For buyers purchasing a home that will be their principal place of residence, a concessional scale applies to properties with a dutiable value up to $550,000. This scale provides progressively larger reductions for lower-priced homes, with the greatest benefit at the bottom of the range. For a $440,000 PPR purchase, the concessional duty is approximately $18,639, compared with $21,470 under the general scale.
Worked Example: $650,000 Home Purchase (Non-First-Home Buyer)
For a standard purchaser buying a $650,000 home, the first $130,000 incurs $2,870 in duty. The remaining $520,000 (from $130,001 to $650,000) is taxed at 6%, adding $31,200. Total transfer duty: $2,870 + $31,200 = $34,070.
First Home Buyer Duty Exemption and Concession in Victoria
Victoria offers one of the more generous first home buyer duty relief packages, available for both new and existing homes.
Full Exemption
First home buyers purchasing a property with a dutiable value of $600,000 or less pay zero transfer duty. This applies to houses, apartments, townhouses, and units, whether newly built or established. Unlike some other states, Victoria does not distinguish between new and existing properties for the exemption threshold.
Concessional (Phased-Out) Rates
For homes valued between $600,001 and $750,000, a concessional rate applies on a sliding scale. The concession reduces the duty payable by an amount that tapers from the full benefit at $600,000 to zero at $750,000. At $650,000, a first home buyer would pay approximately $11,357 in duty, representing a saving of roughly $22,713 compared with the standard rate at that price point. Above $750,000, no first home buyer duty concession is available.
Eligibility Requirements
At least one purchaser must be an Australian citizen or permanent resident, and must occupy the property as their principal place of residence for a continuous period of at least 12 months commencing within 12 months of settlement. Buyers (and their spouse or partner) must not have previously owned residential property in Australia, and must not have received a first home buyer duty exemption or concession in any other state or territory.
First Home Owner Grant (FHOG) in Victoria
The Victorian FHOG provides $10,000 for eligible first home buyers purchasing or building a new home with a dutiable value of $750,000 or less. The grant is available in addition to the duty exemption or concession, meaning a buyer purchasing a newly built home for $600,000 could pay zero transfer duty and also receive the $10,000 grant.
The grant applies to newly constructed homes that have not been previously occupied or sold as a place of residence. Off-the-plan purchases, house-and-land packages, and owner-builder constructions may also qualify. The property must be occupied as the principal place of residence for at least 12 months.
Foreign Purchaser Additional Duty in Victoria
Foreign purchasers acquiring residential property in Victoria must pay an additional duty of 8% on top of the standard transfer duty rates. This additional duty is calculated on the entire dutiable value of the property and is payable at settlement alongside standard duty.
A foreign purchaser is generally defined as an individual who is not an Australian citizen, not a permanent resident, and not a New Zealand citizen holding a special category visa. Foreign corporations and trustees of foreign trusts are also subject to the additional duty. There are limited exemptions for certain commercial residential premises and developments that add to housing supply.
For example, a foreign purchaser buying an $800,000 residential property would pay approximately $45,070 in standard transfer duty plus $64,000 in additional duty (8% of $800,000), for a total duty liability of $109,070.
Frequently Asked Questions
When is Victorian land transfer duty payable? Duty becomes payable within 30 days of the property transfer date, which is typically the settlement date. Late payment incurs interest charges and may attract penalty tax. Electronic settlements through PEXA automatically calculate and remit the duty to the SRO.
Can off-the-plan purchases reduce stamp duty? Yes. For off-the-plan purchases, the dutiable value is generally calculated on the contract price less the costs of construction incurred after the contract date. This concessional treatment can significantly reduce the duty payable, particularly for apartment purchases where construction is yet to commence.
Do pensioners receive any stamp duty concessions in Victoria? Victoria offers a pensioner duty concession for eligible pension card holders purchasing a new or established home as their principal place of residence with a dutiable value of $750,000 or less. The concession provides a one-off duty exemption on the first $330,000 of the purchase price, which can result in meaningful savings.
Is there a difference in duty for regional versus metropolitan properties? Victoria does not apply different transfer duty rates for regional versus metropolitan properties. The same general scale applies statewide, though the PPR concessional scale and first home buyer exemptions provide de facto reductions for eligible owner-occupiers in all locations.
What happens with duty on a transfer between family members? Transfers of property between married or de facto partners where no money changes hands may be exempt under certain conditions, particularly in the context of relationship breakdowns. Transfers to other family members typically attract duty at the standard rates based on market value.
Data Sources
The data presented in this article is sourced from the State Revenue Office Victoria’s official publications on land transfer duty rates, first home buyer concessions, and foreign purchaser additional duty, as current at July 2026. Readers should verify their specific circumstances with the SRO or a qualified professional.
Arrivau’s licensed property consultants are available to provide tailored guidance on Victorian duty obligations, available concessions, and the interaction between different assistance schemes, typically within one business day.
Disclaimer: This article provides general information only and does not constitute financial, tax, or legal advice. Stamp duty rates and concessions may change. Readers should confirm current rates with the relevant state Revenue Office or a licensed professional before making property decisions. Data current as at July 2026.