Victoria levies land transfer duty — commonly called stamp duty — on most residential property purchases at settlement. For the 2026-27 financial year, the State Revenue Office Victoria has left the standard rate thresholds unchanged. On a median-priced Melbourne home of approximately $800,000 the duty payable is around $43,070 for a non-first-home buyer. First home buyers purchasing a property valued at $600,000 or below pay zero stamp duty, with a phasing concession extending to $750,000. Foreign buyers pay an additional 8% surcharge. The First Home Owner Grant (FHOG) of $10,000 remains available for eligible new homes up to $750,000. All figures in this article are sourced from the State Revenue Office Victoria and are current as at July 2026.
Victoria Standard Land Transfer Duty Rates 2026-27
Victoria’s standard land transfer duty scale applies to all residential purchases that do not qualify for a concession. The rates are calculated on the dutiable value of the property — generally the purchase price or market value, whichever is higher.
For dutiable values up to $25,000 the rate is 1.4% of the total value. For values between $25,001 and $130,000 the duty is $350 plus 2.4% of the amount exceeding $25,000. For the bracket that covers most Melbourne homes — $130,001 to $960,000 — the duty is $2,870 plus 6% of the amount exceeding $130,000. Properties valued between $960,001 and $2,000,000 attract a flat rate of 5.5% on the total dutiable value. For homes above $2,000,000 the duty is $110,000 plus 6.5% of the amount exceeding $2,000,000.
There is also a concessional scale for properties purchased as a principal place of residence (PPR) valued at $550,000 or below. This concessional scale charges a lower effective rate than the standard brackets and is designed to reduce the upfront cost for owner-occupiers in the lower price segment.
First Home Buyer Duty Exemption and Concession
Victoria provides a full stamp duty exemption for first home buyers purchasing a property valued at $600,000 or less. This applies to both new and established homes, provided the buyer meets the eligibility criteria: they must be a natural person (not a company or trust), at least 18 years old, and occupy the property as their principal place of residence for a continuous period of at least 12 months within the first 12 months of settlement. At least one buyer must be an Australian citizen or permanent resident.
For properties valued between $600,001 and $750,000 a phasing concession applies. The concession reduces the duty payable on a sliding scale — the closer the property value is to $750,000, the smaller the concession. Properties valued above $750,000 receive no first home buyer stamp duty concession at all.
Verdict for a first home buyer in Melbourne: if your budget allows, staying at or below $600,000 eliminates stamp duty entirely. Stepping up to $650,000 means you will pay some duty but still receive a meaningful concession. At $750,001 the full standard rate applies.
Foreign Purchaser Additional Duty
Foreign buyers purchasing residential property in Victoria pay an additional 8% surcharge on top of the standard land transfer duty. This surcharge applies to the dutiable value of the property and is payable in addition to any standard duty. Foreign buyers are also ineligible for the first home buyer duty exemption or concession.
Foreign purchasers should also be aware that Victoria imposes an absentee owner surcharge on land tax. From 2026 this surcharge increased from 2% to 4% of the taxable value of the land, applied annually. Together the upfront stamp duty surcharge and ongoing land tax surcharge represent a significant additional cost for non-resident buyers in the Victorian market.
First Home Owner Grant (FHOG)
Separate from the stamp duty exemption, Victoria offers a First Home Owner Grant of $10,000 for eligible first home buyers purchasing or building a new home. The property value must not exceed $750,000 and the home must be new — established homes do not qualify for the FHOG. The grant can be used alongside the stamp duty exemption or concession.
Worked Examples
A non-first-home buyer purchasing an established home in Melbourne for $800,000 would pay: $2,870 + 6% × ($800,000 − $130,000) = $2,870 + $40,200 = $43,070 in stamp duty.
A first home buyer purchasing the same $800,000 property would receive no stamp duty concession (above the $750,000 cap) and would also pay $43,070.
A first home buyer purchasing a $550,000 home using the PPR concessional scale would pay a significantly reduced amount, and if the property qualifies as a first home (under $600,000), the duty is fully exempt — $0.
A foreign buyer purchasing at $800,000 would pay the standard duty of $43,070 plus the 8% foreign surcharge of $64,000, for a total stamp duty bill of $107,070.
FAQ
Q: Does Victoria’s stamp duty exemption apply to off-the-plan apartments? A: First home buyers can combine the off-the-plan concession with the first home buyer duty exemption. The off-the-plan concession allows construction costs incurred after the contract date to be deducted from the dutiable value. This can bring an apartment’s dutiable value below the $600,000 exemption threshold even when the contract price is higher.
Q: If I bought my first home interstate, am I still a first home buyer in Victoria? A: No. The first home buyer duty exemption requires that neither you nor your spouse or partner has ever owned residential property anywhere in Australia. A previous purchase in any state or territory disqualifies you.
Q: Is there a stamp duty exemption for pensioners in Victoria? A: Victoria offers a pensioner concession on stamp duty for eligible pension card holders purchasing a property valued at $750,000 or below as their principal place of residence. The concession provides a one-off duty reduction and is separate from the first home buyer scheme.
Q: When is stamp duty payable in Victoria? A: Stamp duty is payable within 30 days of settlement. Your conveyancer or solicitor will typically lodge the documents and arrange payment from settlement funds. Late payment incurs penalty interest at market rate plus a premium, currently above 10% per annum.
Q: Can I add the stamp duty cost to my home loan in Victoria? A: Some lenders allow stamp duty to be capitalised into the loan amount, but this depends on your loan-to-value ratio and the lender’s policy. Capitalising stamp duty increases your total loan and therefore your ongoing repayments and interest cost over the life of the loan.
Sources
- State Revenue Office Victoria, Land Transfer Duty, sro.vic.gov.au (accessed July 2026)
- State Revenue Office Victoria, First Home Buyer Duty Exemption or Concession, sro.vic.gov.au (2026-27)
- State Revenue Office Victoria, Foreign Purchaser Additional Duty, sro.vic.gov.au (current as at July 2026)
- State Revenue Office Victoria, First Home Owner Grant, sro.vic.gov.au (2026-27)
- State Revenue Office Victoria, Principal Place of Residence Concession, sro.vic.gov.au
This article provides general information only and does not constitute financial, legal, or tax advice. Stamp duty is complex and depends on individual circumstances. Consult the State Revenue Office Victoria or a qualified conveyancer before making a purchase decision.