Victoria Stamp Duty 2026: Rates, FHB Exemption & Worked Examples
Every VIC land transfer duty band, the PPR concession, first home buyer exemption to $600k, the $960k cliff, off-the-plan rules and the 8% foreign surcharge. Five worked examples from $500k to $2.5M.
Victoria has the most expensive stamp duty in Australia for most buyers. On a typical $850,000 Melbourne house you will pay just over $46,000 in land transfer duty. Cross $960,000 and the formula changes completely: duty becomes a flat 5.5% of the entire price.
This guide covers the general rate scale, the principal place of residence (PPR) concession, the first home buyer exemption and concession, the off-the-plan concession, and the foreign purchaser surcharge. Every number below is worked out by hand from the State Revenue Office (SRO) bands so you can check the maths yourself.
The general rate scale
Duty is calculated on the greater of the purchase price or the market value of the property. The general rates apply to investors and to owner-occupiers who don't qualify for a concession.
| Dutiable value | Duty payable |
|---|---|
| $0 – $25,000 | 1.4% of the value |
| $25,001 – $130,000 | $350 + 2.4% of the value over $25,000 |
| $130,001 – $960,000 | $2,870 + 6% of the value over $130,000 |
| $960,001 – $2,000,000 | 5.5% of the total value |
| Over $2,000,000 | $110,000 + 6.5% of the value over $2,000,000 |
Principal place of residence (PPR) concession
If you will live in the property as your home within 12 months of settlement (and stay for at least 12 months), you get a reduced rate on the portion of value between $130,000 and $550,000:
| Dutiable value | PPR duty payable |
|---|---|
| $130,001 – $440,000 | $2,870 + 5% of the value over $130,000 |
| $440,001 – $550,000 | $18,370 + 6% of the value over $440,000 |
Above $550,000 the PPR concession disappears entirely and the general rate applies. In practice, it only helps buyers of units and apartments in the outer ring or regional Victoria.
First home buyer exemption and concession
- Up to $600,000: full exemption. You pay $0 duty.
- $600,001 to $750,000: sliding-scale concession. The discount shrinks linearly from 100% at $600k to 0% at $750k.
- Over $750,000: no concession, general rate applies.
Eligibility: you (and your partner) must never have owned residential property in Australia, at least one buyer must be an Australian citizen or permanent resident, and you must move in within 12 months and live there for 12 continuous months. Unlike NSW, the Victorian exemption applies to both new and established homes.
The cash First Home Owner Grant ($10,000) is separate and only applies to new homes valued up to $750,000. See our state-by-state FHB grants guide for how it stacks with the duty exemption.
Worked examples
$500,000 apartment, owner-occupier (not FHB)
Typical of 1 and 2-bed apartments in postcodes like 3121 Richmond or 3056 Brunswick.
$700,000 townhouse, first home buyer
At $700k you are two-thirds of the way through the $600k to $750k concession window, so you pay two-thirds of the general duty. Getting the price down to $600k would mean paying nothing at all, versus the $31,070 an investor would pay at that price.
$850,000 house, investor
Typical middle-ring house territory, for example 3073 Reservoir or 3020 Sunshine.
$1,200,000 house, any buyer
$2,500,000 premium house
Off-the-plan concession
Victoria lets you calculate duty on an off-the-plan purchase after deducting the construction costs still to be incurred at the contract date. If you sign before construction starts, you can end up paying duty on little more than the land component.
From October 2024, the State Government expanded this concession for a limited period to all buyers of apartments, units and townhouses in strata developments, including investors, with no price cap. Check the SRO website for the current end date before relying on it, because the expanded window is time-limited.
Foreign purchaser additional duty
Foreign buyers pay an additional 8% on top of the general rate, on the full dutiable value. Victoria also levies an absentee owner land tax surcharge on foreign-owned property each year.
Other upfront costs to budget for
- Transfer registration fee: scales with price, roughly $1,500 to $3,000 for most Melbourne purchases
- Mortgage registration fee: around $130
- Conveyancing: $1,000 to $2,500
- Building and pest inspection: $400 to $800
- LMI if your deposit is under 20%. On a $700k loan this can run well into five figures. See our LMI guide.
See the duty for any Victorian postcode
Every PropPulse postcode report includes an estimated stamp duty on the median-priced property, alongside FHB eligibility and the Investment Score. Compare with NSW and Queensland rules, browse the VIC suburb directory, or get a free report.