Victoria Stamp Duty — How Much Will You Pay?
Victoria's stamp duty — officially called land transfer duty — is one of Australia's most layered upfront costs. Owner-occupiers and investors pay different rates, the rate table switches above $550,000, and first home buyers can avoid it entirely on purchases under $600,000. Here's exactly how the numbers work.
What is land transfer duty in Victoria?
Land transfer duty is what everyone calls stamp duty in Victoria. It is a one-off state tax charged by the State Revenue Office (SRO) Victoria every time a property changes hands, calculated as a percentage of the dutiable value — usually the purchase price.
Unlike your mortgage, you cannot borrow stamp duty. It must be paid in cash at settlement, on top of your deposit, conveyancing fees, inspections, and any other upfront costs.
Victoria is unusual in having two separate rate tables: a lower principal place of residence (PPR) rate for owner-occupiers purchasing under $550,000, and a higher general rate that applies to investors at all prices and to owner-occupiers above $550,000.
Owner-occupier rates (up to $550,000)
If you are buying a property to live in as your principal place of residence and the price is $550,000 or below, the PPR rate table applies:
| Dutiable value | Duty payable |
|---|---|
| Up to $25,000 | 1.4% of value |
| $25,000 – $130,000 | $350 + 2.4% of excess over $25,000 |
| $130,000 – $440,000 | $2,870 + 5% of excess over $130,000 |
| $440,000 – $550,000 | $18,370 + 6% of excess over $440,000 |
Above $550,000, the general rate table applies even for owner-occupiers — the PPR concession ends at that threshold.
Source: SRO Victoria — Current rates.
Investor and general rates (all investors; owner-occupiers above $550,000)
Investment properties always pay the general rate, as do owner-occupiers purchasing above $550,000. Note that between $960,001 and $2,000,000 a flat rate applies to the entire dutiable value — not just the excess.
| Dutiable value | Duty payable |
|---|---|
| Up to $25,000 | 1.4% of value |
| $25,000 – $130,000 | $350 + 2.4% of excess over $25,000 |
| $130,000 – $960,000 | $2,870 + 6% of excess over $130,000 |
| $960,000 – $2,000,000 | 5.5% of dutiable value |
| Over $2,000,000 | $110,000 + 6.5% of excess over $2,000,000 |
Source: SRO Victoria — Current rates.
First home buyer exemptions and concessions
Victoria's first home buyer duty concession under the First Home Buyer Duty Exemption, Concession or Reduction scheme works as follows:
- Full exemption on purchases up to $600,000 — you pay $0 land transfer duty.
- Sliding concession between $600,001 and $750,000 — the discount reduces linearly as the price rises toward $750k.
- No concession above $750,000 — you pay the full general rate.
To qualify you must be an Australian citizen or permanent resident, aged 18 or over, purchasing at market value with intent to occupy the property as your principal place of residence continuously for at least 12 months, starting within 12 months of settlement. Neither you nor your spouse or domestic partner can have previously received a first home buyer duty concession or exemption.
VIC first home buyer concessions can also stack with the federal First Home Guarantee (5% deposit, no LMI) — if you qualify for both, you could buy a $600,000 home with a 5% deposit, no stamp duty, and no lenders mortgage insurance.
Worked examples
These figures are computed from the bracket tables above — the same formula the SRO uses. All amounts are indicative; your final duty depends on the contract date, property type, and your eligibility.
First home buyer · $500,000
Under the $600k full-exemption threshold — you pay $0 land transfer duty.
First home buyer · $650,000
Inside the $600k–$750k sliding-concession band — the discount reduces linearly as the price rises toward $750k.
Owner-occupier (not FHB) · $500,000
At $500,000 the favourable principal place of residence (PPR) rate applies — owner-occupiers pay less than investors at this price.
Owner-occupier (not FHB) · $750,000
Above $550k the PPR rate table no longer applies — owner-occupiers pay the same general (investor) rate.
Investment property · $1,000,000
Properties between $960,001 and $2 million are taxed at a flat 5.5% of the full dutiable value — no base-plus-bracket formula.
Stamp duty is one line in your true purchase cost. See how it stacks with lenders mortgage insurance, conveyancing, inspections, council rates, and every ongoing cost:
Calculate your full purchase costOther VIC concessions worth knowing
Pensioner and concession cardholder duty reduction. Eligible pensioners and concession cardholders buying a principal place of residence can receive a full exemption on homes valued up to $600,000, or a sliding concession on homes between $600,001 and $750,000 (the discount reduces as the price approaches the $750,000 ceiling). No reduction applies above $750,000. See the SRO pensioner concession page for current thresholds and eligibility.
Foreign purchaser additional duty. If you are a foreign person, foreign corporation, or trustee of a foreign trust, an additional 8% surcharge applies on top of standard rates for residential property purchases. This is separate from the general rate and is not capped.
Off-the-plan concession. Buyers purchasing a new or substantially renovated property under an off-the-plan contract may be eligible to have duty assessed on a reduced dutiable value — generally the land value plus completed construction to date, rather than the full finished price. This can significantly reduce upfront duty for new builds. Eligibility requirements apply; confirm with the SRO.
How VIC stamp duty compares to other states
Victoria's first home buyer exemption threshold of $600,000 is lower than NSW's $800,000 threshold. The foreign purchaser surcharge of 8% is among the highest in Australia. The two-tier PPR / general rate structure is a VIC-specific quirk — most other states do not split owner-occupier and investor rates at the bracket level. For investors, Victoria's general rate of 6% of the excess over $130,000 (up to $960k) compares to NSW's 4.5% — making Victoria meaningfully more expensive for mid-range investment property.
Frequently asked questions
How much is stamp duty in Victoria?
Victoria stamp duty (land transfer duty) is calculated on a sliding bracket scale. For a $750,000 property, an owner-occupier pays $40,070 and an investor pays $40,070. First home buyers pay $0 on purchases up to $600,000 and a reduced amount on purchases between $600,001 and $750,000. Above $750,000, full general rates apply to everyone.
Do first home buyers pay stamp duty in Victoria?
Not if the property is $600,000 or less — the land transfer duty exemption for first home buyers brings the bill to $0. Between $600,001 and $750,000 a proportional concession applies: the discount starts at 100% at $600,001 and reduces to zero at $750,000. Above $750,000, first home buyers pay the full general rate. To qualify, you must be an Australian citizen or permanent resident aged 18 or over, buying at market value with the intention to occupy the property as your principal place of residence continuously for at least 12 months, starting within 12 months of settlement.
What is land transfer duty in Victoria?
Land transfer duty is the official name for what everyone calls stamp duty in Victoria. It is a state tax charged by the State Revenue Office (SRO) Victoria on every property transfer, calculated as a percentage of the dutiable value (usually the purchase price). Victoria has two rate tables — a lower principal place of residence (PPR) rate for owner-occupiers on properties up to $550,000, and a higher general rate that applies to investors at all price points and to owner-occupiers above $550,000.
When do you pay stamp duty in Victoria?
Land transfer duty must be paid within 30 days of settlement in Victoria — your conveyancer or solicitor will lodge the dutiable transaction with the SRO and arrange payment as part of the settlement process. Off-the-plan purchasers who intend to occupy the property as their principal residence can apply to defer duty for up to 12 months after the off-the-plan contract date. Miss the deadline and the SRO charges interest on the unpaid amount.
How do I calculate stamp duty on an investment property in Victoria?
Investment properties always pay the general (non-PPR) rate in Victoria. For purchases up to $960,000 the formula is $2,870 plus 6% of the excess over $130,000. Between $960,001 and $2,000,000 a flat 5.5% of the total dutiable value applies — no base. Above $2,000,000 it is $110,000 plus 6.5% of the excess over $2,000,000. There is no first home buyer concession for investors.
Is there stamp duty on vacant land in Victoria?
Yes — vacant land is dutiable at the same rates as a property purchase. If you are a first home buyer purchasing vacant land with the intention of building and occupying the home as your principal residence, you may be eligible for the first home buyer duty exemption or concession, provided the land is $600,000 or less (exemption) or up to $750,000 (partial concession). The SRO applies the same thresholds as for established properties.
This guide is for general information only and is not financial, legal or tax advice. Victoria's land transfer duty rules and thresholds change — verify current rates and your eligibility with the State Revenue Office Victoria or a licensed conveyancer before making property decisions.