How Much Stamp Duty in Victoria: First Home Buyer Guide 2026

For most first home buyers, stamp duty is either a brutal hit to their savings — or the single biggest saving of the entire purchase. In Victoria, the difference between paying zero and paying over $40,000 comes down to one number: the final purchase price. Here is exactly how the system works.

What Victoria Calls It: Land Transfer Duty

Victoria uses the term "land transfer duty," though most people still say stamp duty. Whatever you call it, the same rule applies: liability arises the moment both parties sign the contract of sale — not at settlement. Despite this, payment is handled at settlement via the PEXA electronic platform, where your conveyancer ensures it is paid directly to the State Revenue Office as part of the final funds transfer.

The First Home Buyer Exemption and Concession

The Victorian Government offers targeted relief that can eliminate your entire duty bill.

Full exemption below $600,000. If you purchase a property with a dutiable value at or below $600,000, you pay zero land transfer duty. That saves you roughly $31,000 compared to a standard purchaser. This applies to both new and established properties, provided it is your principal place of residence.

Tapered concession from $600,001 to $750,000. Above $600,000, a sliding scale applies. The discount is largest just above $600,000 and shrinks linearly as the price climbs toward $750,000.

Here is what the concession actually looks like in practice:

One number to understand clearly: if your purchase price is $750,001 or above, you receive no first home buyer concession at all. The full standard duty rate applies from dollar one.

The Standard Rate Schedule

If your property falls outside the exemption/concession range — or if you end up not qualifying — here is how Victoria's land transfer duty is calculated:

Two Real Scenarios

Scenario A: $550,000 established home in the outer suburbs

You pay zero stamp duty thanks to the full first home buyer exemption. Your other acquisition costs — transfer registration fee (~$1,580), mortgage registration (~$122), conveyancing (~$1,200–$1,800), and a building inspection (~$500) — total roughly $3,400. That is a highly efficient entry into the market.

Scenario B: $700,000 established home in a middle-ring suburb

The first home buyer concession reduces your duty bill from the standard $37,070 to $24,713. Add the same non-duty costs of around $3,400, and your total upfront acquisition costs are approximately $28,100. All of that cash — except the mortgage registration fee — must be available on settlement day and cannot be rolled into the loan.

The Off-the-Plan Stamp Duty Concession

If you are buying an apartment, townhouse, or unit off the plan, an entirely separate concession applies — and it can be stacked on top of the first home buyer concession to dramatic effect.

Under Victoria's expanded off-the-plan concession (available for contracts signed before 20 April 2027), the dutiable value is calculated only on the land value at contract date, not the total purchase price. Outstanding construction costs are fully deducted. If an apartment is being purchased for $620,000 but $465,000 of that price represents future construction, the dutiable value drops to just $155,000 — well below the $600,000 first home buyer threshold. The result is zero duty on a property that would otherwise cost over $30,000 in tax.

This matters a lot if you are buying off the plan and the headline price exceeds $600,000. Run the numbers before assuming you will pay full duty.

What "Dutiable Value" Actually Means

Duty is assessed on the greater of the purchase price or market value. If you buy a property at under market value — say, from a family member — the SRO will assess duty on the market value, not the agreed price. For standard arm's-length purchases, the contract price is used.

Foreign Buyer Surcharge

If you are not an Australian citizen or permanent resident, an additional 8% Foreign Purchaser Additional Duty applies on top of standard land transfer duty. There is also an ongoing Absentee Owner Surcharge of 4% per year in land tax for those who do not ordinarily reside in Australia.

When Is Duty Actually Paid?

Technically, duty liability arises on the contract signing date. But payment is not due for 30 days. In modern practice, your conveyancer pays it electronically on your settlement day as part of the PEXA workspace settlement. You will need the funds available in your settlement account before settlement day.

The $600,000 Cliff Effect

Understanding the exemption threshold changes how you should approach your budget. Buyers who stretch just beyond $600,000 suddenly face a real cash bill. At $650,000, you are paying $11,356 in duty that must come from your savings, not the loan. Buyers who carefully keep their offer at or below $600,000 — particularly in regional areas or outer growth corridors — can redirect that cash entirely to their deposit.

For buyers working within tight deposit constraints, cities like Ballarat and Bendigo, with median house prices hovering near the $600,000 mark, allow first home buyers to access premium regional properties while paying zero duty. That is a meaningful financial lever.

The Victoria First Home Buyer Guide covers stamp duty calculations alongside a complete cost worksheet, timeline, and all the other numbers you need to budget accurately for settlement. Get the complete guide at firsthomestartguide.com/au/victoria/first-home/.

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