Stamp duty — officially called land transfer duty in Victoria — is one of the largest upfront costs in any property purchase, yet it is consistently the one that catches buyers off guard. On a typical Melbourne home in the $800,000–$1,000,000 range, stamp duty alone can add $40,000–$55,000 to your purchase costs. Understanding how it is calculated, and which concessions you may be entitled to, can make a significant difference to your deposit strategy and borrowing capacity.
This guide covers how Victorian stamp duty works in 2026, the concession thresholds that could save first home buyers tens of thousands of dollars, and how to factor stamp duty into your overall home-buying budget. If you are buying through IFG, we always walk through purchase cost estimates in detail during your initial strategy session — because an accurate upfront figure shapes everything from your deposit target to your pre-approval amount.
Key Takeaway: First home buyers purchasing a home valued at $600,000 or less in Victoria pay $0 in stamp duty. A partial concession applies up to $750,000. On a standard purchase above these thresholds, stamp duty is calculated on a sliding scale and can be one of the most significant costs you plan for.
What Is Stamp Duty in Victoria and When Is It Payable?
Stamp duty in Victoria is formally known as land transfer duty and is administered by the State Revenue Office of Victoria (SRO). It is a state government tax levied on the transfer of real property — meaning it applies whenever ownership of land or a property changes hands.
You are generally required to pay stamp duty:
- Within 30 days of settlement (for established property purchases)
- For off-the-plan purchases, within 30 days of the earlier of settlement or 12 months after contract signing (though specific rules apply — see below)
- When a dutiable transaction occurs, including some transfers between related parties
The duty is calculated on the dutiable value of the property, which is generally the greater of the purchase price or the unencumbered market value. For off-the-plan contracts, the dutiable value may be reduced to reflect construction costs not yet incurred at the time of contract — this is the mechanism behind the off-the-plan concession.
Stamp duty is paid to the State Revenue Office, typically via your conveyancer or solicitor at settlement. Your lender does not cover this cost — it must come from your own funds, which is why it is so important to factor it into your deposit and savings plan well before you are ready to buy.
Victorian Stamp Duty Rates: How Is It Calculated?
Victoria uses a tiered, sliding-scale system for calculating stamp duty on residential property. The higher the purchase price, the higher the effective rate of duty applied. The table below reflects the standard (non-PPR) land transfer duty rates published by the State Revenue Office — these apply to investment property purchases and to owner-occupier purchases above $550,000. A separate, reduced rate schedule applies to principal place of residence purchases below $550,000 (see the PPR Concession section below). For your exact figure, always use the SRO Land Transfer Duty Calculator.
| Dutiable Value | Duty Payable |
|---|---|
| $0 – $25,000 | 1.4% of the dutiable value |
| $25,001 – $130,000 | $350 + 2.4% on amount over $25,000 |
| $130,001 – $960,000 | $2,870 + 6% on amount over $130,000 |
| $960,001 – $2,000,000 | $52,670 + 5.5% on amount over $960,000 |
| Over $2,000,000 | Higher rates apply — verify with SRO |
To illustrate how these brackets work in practice, here are approximate stamp duty amounts for common Melbourne purchase prices using the standard (non-PPR) rate schedule, with no concessions applied. These figures are calculated from the rate table above and sourced from the SRO Land Transfer Duty Calculator:
| Purchase Price | Approx. Stamp Duty (Standard Rate) | Notes |
|---|---|---|
| $500,000 | ~$25,070 | Standard rate; FHB exemption if eligible |
| $600,000 | ~$31,070 | FHB: $0 (full exemption threshold) |
| $700,000 | ~$37,070 | FHB: partial concession applies |
| $750,000 | ~$40,070 | FHB concession upper limit |
| $850,000 | ~$46,070 | Standard rate; no FHB concession |
| $950,000 | ~$52,070 | Just below premium rate threshold |
| $1,100,000 | ~$60,370 | Premium rate tier applies |
Note: All figures above are indicative only, calculated using the standard non-PPR rate schedule. Owner-occupiers purchasing below $550,000 may pay less under the PPR concession rate — use the SRO online calculator for your precise figure based on your circumstances.
First Home Buyer Duty Exemption and Concession in Victoria
Victoria offers two significant stamp duty benefits specifically for eligible first home buyers:
Full Exemption — Properties Up to $600,000
If you are purchasing your first home in Victoria and the property is valued at $600,000 or less, you pay no stamp duty at all. This is the First Home Buyer Duty Exemption, and it represents a saving of up to approximately $28,000 compared to a standard purchaser at that price point.
Partial Concession — Properties $600,001 to $750,000
If your first home is valued between $600,001 and $750,000, you receive a partial concession. The concession gradually reduces to zero as the purchase price approaches $750,000. At $700,000, for example, a first home buyer may pay significantly less than the standard stamp duty amount — check the SRO calculator for the exact figure at your purchase price.
To be eligible for either concession, you must:
- Be an individual (not a company or trust)
- Be purchasing your first home — you must not have previously owned residential property in Australia
- Intend to use the property as your principal place of residence, moving in within 12 months of settlement and living there for at least 12 continuous months
- Be an Australian citizen or permanent resident (or a New Zealand citizen with a Special Category Visa)
If you are purchasing with a co-buyer (e.g. a partner), all purchasers must meet the eligibility criteria. One partner having previously owned property disqualifies the full concession, though a partial arrangement may apply — speak with your conveyancer about your specific situation.
Important: The First Home Buyer Duty Exemption is separate from — and can be used alongside — the First Home Guarantee, which allows eligible buyers to purchase with a 5% deposit and no Lenders Mortgage Insurance. Stacking these two benefits can meaningfully reduce your upfront costs.
Other Victorian Stamp Duty Concessions You Should Know About
Principal Place of Residence (PPR) Concession
If you are buying a property to live in as your primary home (but you are not a first home buyer), a PPR concession may apply, reducing the duty payable compared to an investment purchase at the same price. According to the State Revenue Office, the PPR concession is available on properties valued up to $550,000. Above $550,000, the standard rate applies regardless of intended occupancy. Use the SRO calculator to see the concession rate applicable to your specific purchase price.
Off-the-Plan Concession
When you purchase an off-the-plan apartment or townhouse under a contract before construction is complete, the dutiable value can be reduced by the portion of the contract price attributable to construction costs yet to be incurred. This can substantially reduce the stamp duty bill on new developments, though the extent of the concession depends on how much construction has been completed at the time you sign the contract.
There are two off-the-plan concession pathways currently available in Victoria:
- Standard Off-the-Plan Concession: Available to eligible buyers purchasing a property to be used as their principal place of residence. The dutiable value is reduced by deducting the construction cost component not yet incurred, which can significantly reduce duty payable.
- Temporary Strata Apartments and Townhouses Concession: The State Revenue Office has extended a temporary off-the-plan duty concession specifically for strata apartments and townhouses. Importantly, this concession is available to all purchasers — including investors — not just owner-occupiers or first home buyers. This temporary concession runs until 20 October 2026. If you are purchasing a strata apartment or new townhouse off-the-plan before this date, you may be eligible regardless of whether it will be your home or an investment property. See the SRO's Strata Apartments and Townhouses Temporary Concession page for full eligibility criteria.
Your conveyancer should advise you on the concession calculation when reviewing the contract, as the amount saved depends on construction progress at contract date.
Pensioner Concession
Eligible concession cardholders (including pensioners) may be entitled to a full or partial exemption on stamp duty for a principal place of residence purchase, subject to value thresholds and other eligibility criteria. Check the SRO website for current limits and conditions.
Foreign Purchaser Additional Duty
Foreign persons — including foreign corporations and certain trusts — purchasing residential property in Victoria are subject to an additional stamp duty surcharge of 8% of the dutiable value, on top of standard duty. This applies to both established and off-the-plan residential purchases.
How to Factor Stamp Duty into Your Home Buying Budget
Stamp duty must be paid from your own funds — it cannot be added to your home loan in most circumstances. This means it needs to sit alongside your deposit as genuine savings. Here is how to approach your budgeting:
- Calculate your full upfront costs: Deposit + stamp duty + conveyancing/legal fees ($1,500–$3,000) + building inspection ($400–$700) + loan establishment fees. For a $750,000 purchase without a first home buyer concession, your total upfront costs could exceed $90,000 all-in.
- Know your concession status early: Whether you qualify for the first home buyer exemption changes your deposit and savings target significantly. Get clarity on this before you start looking at properties.
- Factor stamp duty into pre-approval: Lenders assess your genuine savings as part of your deposit — but stamp duty typically needs to come from genuine savings too. Your mortgage broker will help you structure this correctly.
- Time your purchase: If you are close to the $600,000 or $750,000 FHB thresholds, buying just under these figures saves real money. A property at $598,000 means $0 in stamp duty as a first home buyer; at $605,000, you pay a partial amount. This is worth discussing with your broker and agent.
At IFG, we include a full purchase cost breakdown — including stamp duty, LMI (if applicable), legal fees and any government grants you may qualify for — as part of every first home buyer consultation. You should never be surprised by a cost at settlement. Understanding what you will pay from the very first conversation means you can build a savings plan that actually works.
Stamp Duty vs. Lenders Mortgage Insurance: Both Are Avoidable in the Right Scenario
Two of the largest upfront cost hurdles for Melbourne buyers are stamp duty and Lenders Mortgage Insurance (LMI). While stamp duty is a government charge you pay to the SRO, LMI is a premium paid to the lender's insurer when your deposit is below 20% of the purchase price. Together, these two costs can add $30,000–$60,000+ to a purchase depending on your price point and deposit.
The good news: eligible first home buyers can now potentially avoid both. The First Home Guarantee allows qualified buyers to purchase with a 5% deposit and no LMI — and if your purchase is below $600,000, you also pay $0 in stamp duty. This combination can meaningfully accelerate your path to home ownership without needing to save a 20% deposit first.
If your purchase price is above the stamp duty concession threshold, we can look at whether a family guarantee, a larger deposit, or a different purchasing structure reduces your total upfront cost. There is rarely a one-size-fits-all answer, which is why getting personalised advice matters.
How IFG Can Help You Navigate Purchase Costs
At Integrated Finance Group, we work with first home buyers, upsizers, and investors across Melbourne and Geelong every day — and purchase cost planning is always part of the conversation. We help you:
- Calculate your true upfront costs, including stamp duty, LMI, and legal fees
- Confirm your eligibility for the First Home Buyer Duty Exemption and the First Home Guarantee
- Structure your deposit and savings so lenders view your application favourably
- Compare loan options across 35+ lenders to find the best fit for your situation
Whether you are buying in Coburg North, Essendon, Geelong, or anywhere else in Victoria — speak to us before you commit. A free 15-minute conversation can save you thousands.
Want to Know Exactly What You’ll Pay to Buy in Victoria?
Book a free 15-minute strategy call with Brian or Frank. We’ll calculate your full purchase costs — including stamp duty, LMI, grants and concessions — and tell you exactly what you need to save and borrow.
Book a free consultation or call 0401 333 636
Credit services provided by Integrated Finance Group, Credit Representatives of BLSSA Pty Ltd ACL 391237.