Key Takeaways
- Buyer type and contract date can move the bill as much as price, with owner-occupiers saving $3,100 at $500,000 under the PPR scale
- Eligible first home buyers pay no duty up to $600,000 and reduced duty up to $750,000, and pensioners signing from 1 July 2023 can access the same thresholds once
- The temporary off-the-plan concession covers strata apartments and townhouses for all buyers, including trusts, on contracts signed before 21 April 2027
- Duty is normally paid at settlement, and penalty tax and interest may apply if it is still unpaid 30 days later
Stamp duty in Victoria is usually the largest cash cost of a purchase after the deposit. On a $750,000 home, it comes to $40,070 at general rates, and that amount often has to come from savings, not the loan.
What you pay depends less on the price than many buyers expect and more on two details, your buyer type and the date you sign the contract. A first home buyer, a pensioner, an owner-occupier and an investor can pay very different amounts on the same property, and the off-the-plan concession window is currently set to close in April 2027.
Rates and thresholds here are the State Revenue Office (SRO) figures for 2026. Working through them with a Melbourne home loan broker before you sign may help you set aside the right amount and structure the loan around it.
What Is Stamp Duty in Victoria?
Stamp duty, officially called land transfer duty, is a state tax charged when you acquire property in Victoria. It is calculated on the dutiable value, which is generally the higher of the purchase price and the market value of the property at the time of transfer.
Duty applies to established and new homes, vacant land, investment properties, and rural and commercial land. It can also apply when property changes hands without a sale, such as a gift or a transfer into a trust.
How Much Is Stamp Duty in Victoria in 2026?
At general rates, duty on a purchase between $500,000 and $2.5 million works out at roughly 5% to 5.7% of the dutiable value. Owner-occupiers buying up to $550,000 under the principal place of residence (PPR) scale, and eligible first home buyers, pay less on the same property:
| Dutiable value | General rates | Owner-occupier (PPR) | Eligible first home buyer |
|---|---|---|---|
| $500,000 | $25,070 | $21,970 | $0 (exemption) |
| $600,000 | $31,070 | $31,070 | $0 (exemption) |
| $1,000,000 | $55,000 | $55,000 | $55,000 (no concession) |
| $2,500,000 | $142,500 | $142,500 | $142,500 (no concession) |
This table is a general guide based on the SRO’s published scales, before any off-the-plan concession or foreign purchaser duty.
The rate scales behind these figures are:
General Rates
General rates apply to investment properties and to any purchase where no concession is claimed. The SRO’s current scale, which applies to contracts entered into from 1 July 2021, is:
| Dutiable value | Duty payable |
|---|---|
| $0 to $25,000 | 1.4% of the dutiable value |
| $25,001 to $130,000 | $350 plus 2.4% of the value over $25,000 |
| $130,001 to $960,000 | $2,870 plus 6% of the value over $130,000 |
| $960,001 to $2,000,000 | 5.5% of the total dutiable value |
| Over $2,000,000 | $110,000 plus 6.5% of the value over $2,000,000 |
Figures are a general guide to the SRO’s published scale.
Above $960,000, the 5.5% rate applies to the whole value, not just the portion over the threshold, so a $1 million purchase attracts $55,000 in duty. Beyond $2 million, a premium rate of 6.5% applies to the amount over that threshold. Our online duty calculator can give an estimate for your own price.
Owner-Occupier Rates
Buyers who will live in a home valued up to $550,000 pay duty on the PPR scale, which charges 5% instead of 6% on the value between $130,000 and $440,000:
| Dutiable value | Duty payable |
|---|---|
| $130,001 to $440,000 | $2,870 plus 5% of the value over $130,000 |
| $440,001 to $550,000 | $18,370 plus 6% of the value over $440,000 |
As a general guide, general rates apply above $550,000, and the occupancy conditions under the PPR concession must be met.
On a $500,000 home, the PPR scale brings duty down to $21,970, a saving of $3,100 on general rates.
Foreign Purchaser Rates
Foreign purchasers of residential property pay foreign purchaser additional duty (FPAD) of 8% of the dutiable value on top of general duty, which adds $60,000 to the $40,070 general duty on a $750,000 apartment. FPAD is calculated before any off-the-plan concession is applied, so those concessions reduce general duty only.
Whether a buyer counts as a foreign purchaser depends on citizenship and residency status, which may need confirming before contracts are exchanged.
Stamp Duty Exemptions and Concessions in Victoria
Most Victorian stamp duty savings depend on how you will use the property, who is buying it and, for new apartments and townhouses, when the contract is signed. The concessions currently available are:
First Home Buyer Concession
Under the SRO’s first home buyer duty exemption or concession, eligible buyers pay no duty on a property valued up to $600,000 and a reduced amount between $600,001 and $750,000. Above $750,000, general rates apply in full. The property can be a new or established home, or vacant land bought to build a first home.
To keep the benefit, the buyer generally needs to move in within 12 months of settlement and live there for a continuous 12 months. For vacant land, the move-in deadline is 12 months from the occupancy certificate or 36 months from settlement, whichever comes first. Eligibility follows the First Home Owner Grant criteria, and buyers of a new home valued up to $750,000 may also qualify for that grant.
Between $600,000 and $750,000, first home buyer stamp duty rises steadily with the price, so the exact contract price can change your settlement cash by thousands of dollars. A first home loan broker can build that figure into your deposit plan before you bid.
PPR Concession
Buyers who are not first home buyers can still claim the principal place of residence duty concession on a home valued up to $550,000 that they will live in. They need to move in within 12 months of settlement and live there for at least 12 continuous months.
The concession suits upgraders, downsizers and returning owner-occupiers at the lower end of the market. It is applied through the PPR rate scale, not as a separate rebate.
Pensioner Duty Reduction
Under the pensioner and concession cardholder duty reduction, eligible cardholders who signed their contract on or after 1 July 2023 may pay no duty on a home valued at $600,000 or less. Between $600,001 and $750,000, they may pay a reduced amount. The earlier $330,000 exemption ceiling applies only to contracts signed before that date.
The reduction is available once only, and the home must be the cardholder’s principal place of residence. At least one eligible cardholder must own 25% or more of the property. A cardholder who is also a first home buyer must choose between this reduction and the first home buyer exemption or concession.
Off-the-Plan Concession
The off-the-plan duty concession lowers the dutiable value, because construction costs incurred on or after the contract date are deducted before duty is calculated. The earlier in the build you sign, the larger the deduction tends to be.
The standing version of this concession is available only to buyers who qualify for the PPR concession or the first home buyer exemption or concession. The dutiable value after the deduction must be no more than $550,000 for PPR buyers or $750,000 for first home buyers.
Temporary Off-the-Plan Concession
A temporary concession extends the same deduction to every buyer of a dwelling in a strata subdivision with common property, including investors, companies and trusts, with no price cap. According to the SRO’s strata concession guidance, it applies to contracts entered into from 21 October 2024 and before 21 April 2027, following an extension legislated in June 2026. House-and-land packages outside a strata subdivision do not qualify.
On an $800,000 apartment where $350,000 of the price covers construction that has not yet started, duty is assessed on $450,000, so off-the-plan stamp duty could fall from $41,870 to $22,070 at general rates. That lower cash requirement may change the deposit and loan structure an investment loan broker would put forward.
The concession has been extended twice but is scheduled to end. Eligibility turns on the contract date, not the settlement date.
Other Stamp Duty Exemptions in Victoria
Several narrower exemptions and concessions apply to specific buyers and transfers:
- First home owner with dependent child exemption or concession, for eligible first home buyers with a dependent child purchasing a property valued up to $200,000
- Young farmer duty exemption or concession, for eligible young buyers purchasing their first farmland
- Family farm exemption, for eligible transfers of farmland between family members
- Spouse and partner exemption, for transfers of a principal place of residence between spouses or domestic partners
- Charities duty exemption, for eligible charitable institutions acquiring property for charitable purposes
- Special disability trusts exemption, for property acquired by an eligible special disability trust
- Qualifying person with disability exemption, for eligible transfers to a person with a disability
As a general guide only, eligibility for each exemption depends on conditions set by the SRO.
When Is Stamp Duty Paid in Victoria?
Duty in Victoria is normally paid at settlement, with lodgement starting well before it and penalties possible after it. The stages that affect your timing and cash are:
Lodgement Before Settlement
Every Victorian land transfer needs a Digital Duties Form, including transfers that are fully exempt. Your conveyancer or solicitor completes it through the SRO’s Duties Online system, and the vendor’s side adds details such as construction progress for off-the-plan purchases.
Concessions are claimed on this form, so your occupancy intentions, first home buyer status and any concession card details need to be accurate before it is lodged.
Payment at Settlement
Duties Online calculates the duty and passes it into the electronic settlement workspace, where it is paid to the SRO at settlement. The full amount needs to be in cleared funds on settlement day, from savings or from loan funds your lender has approved.
Penalties After Settlement
Penalty tax and interest may apply if duty is not paid within 30 days of settlement. Late settlement interest of $5,000 or more paid to the vendor also forms part of the dutiable value. The buyer or their representative must notify the SRO for a reassessment within 30 days of settlement, or interest and penalties may be added.
Refunds and Concession Claims After Settlement
A refund may be available when duty has been overpaid, for example where a buyer was entitled to a concession that was not claimed at settlement. Applications go to the SRO and must generally be made within five years.
The rules also work in the other direction. A buyer who claimed a first home buyer, PPR or pensioner benefit must notify the SRO if they do not move in on time or move out before 12 months. The concession may then be withdrawn and the difference charged, with penalty tax and interest possible.
Either type of claim usually needs supporting evidence, such as a concession card, statutory declaration or proof of occupancy.
How a Mortgage Broker Can Help You Plan for Stamp Duty
Because duty is usually funded alongside the deposit, it shapes the whole purchase budget. As brokers, we typically help in these ways:
- Estimating duty across your target price range before you start bidding, so your deposit and pre-approval allow for it
- Checking which concession your circumstances may support, including how close a price sits to the $550,000, $600,000 and $750,000 thresholds
- Modelling how duty affects your loan-to-value ratio (LVR) and whether lenders mortgage insurance (LMI) may apply
- Structuring purchases in a trust or company with a trust loan broker who understands the duty position
- Coordinating with your conveyancer so concession claims and funds are ready for settlement
Duty Budgeted Before Signing
A practical next step is to price two or three target properties against the scales above, then confirm with your conveyancer which concession you would claim on the Digital Duties Form. Once the duty is known, you can see how much of your savings remains for the deposit and adjust the price range, structure or timing before a contract fixes all three.
If you are weighing up a Victorian purchase and want the duty, deposit and loan structure worked out together, the team at Unconditional Finance can talk you through the options that suit your circumstances.
Frequently Asked Questions (FAQs)
Stamp duty on an investment property purchase is generally not deductible against rental income. The Australian Taxation Office (ATO) treats it as part of the property’s cost base, which may reduce the capital gain, and therefore the capital gains tax (CGT), when you sell. Victoria abolished mortgage duty in 2004, so there is no separate loan duty to claim. Borrowing costs such as lender fees are treated differently, and an accountant can confirm the treatment for your situation.
Many lenders expect stamp duty to be paid from your own funds, but some will lend toward it where the overall LVR stays within their limits. Borrowing the duty increases the loan size, which may push the LVR high enough to bring LMI into play. Buyers who already own property may be able to fund duty from existing equity, although lender policies vary.
A gifted property is usually assessed on its market value, even when nothing is paid. A parent transferring a home to a child at no cost may still create a full duty bill. Transfers from a deceased estate to beneficiaries may be exempt or attract reduced duty, and transfers of a principal place of residence between spouses or domestic partners may also be exempt. Each depends on conditions set by the SRO
Commercial and industrial property with both a contract and settlement on or after 1 July 2024 generally pays stamp duty one final time as it enters the Commercial and Industrial Property Tax (CIPT) reform. From 10 years after that transaction, an annual CIPT of 1% of the site value applies, and later sales are generally exempt from duty while the property stays in commercial or industrial use.
Eligible buyers may pay the final duty upfront or finance it through a government-facilitated transition loan repaid over 10 years. Residential concessions do not apply, and a commercial loan broker can factor the chosen payment method into the finance structure.
In most cases, no. The first home buyer and PPR concessions are tied to individual buyers living in the home, so a purchase in a discretionary trust or company usually pays general rates. One exception is a special disability trust whose primary beneficiary is an eligible first home buyer. The temporary off-the-plan concession is open to trusts and companies, which can make strata apartments and townhouses a more duty-efficient option for trust buyers while the window remains open.
Written by Chris Raymond
Founder & Principal Broker, Unconditional Finance · Top 10 Elite Broker (Residential) 2025
Chris founded Unconditional Finance and has spent his career structuring loans tailored to each client’s needs. As a property investor himself, he helps clients grow their portfolios sustainably and in line with their long-term goals.
