If you are thinking of buying a property in Victoria, you have almost certainly come across the term stamp duty. It is one of the biggest upfront costs in any property purchase, yet many buyers are not sure exactly how it works, who pays it, or how much they will owe.
Updated May 2026: For the latest changes, read our Victorian Budget 2026-27 stamp duty breakdown.
This guide covers everything you need to know: how stamp duty is calculated in Victoria, the current rate table, available concessions, and what to expect at settlement.
Stamp duty definition: what it means in Victoria
In Victoria, stamp duty on property is officially called land transfer duty. The two terms are used interchangeably, and you will see both on the State Revenue Office (SRO) website and in your conveyancing documents. The State Revenue Office Victoria administers the tax, and it is paid by the buyer at or before settlement.
Land transfer duty applies when ownership of land or property changes hands. It is calculated on the dutiable value of the property, which is the higher of the purchase price or the market value. The amount you owe depends on the value of the property, the type of purchase, and any concessions you may be eligible for.
Working with an experienced residential conveyancer means you will have a clear picture of your stamp duty obligations before you commit to a purchase, not after.
Current Victorian stamp duty rates (2025-2026)
The following rates apply to standard (non-principal place of residence) property purchases in Victoria. These are the general rates most commonly used to calculate land transfer duty.
| Dutiable value | Duty payable |
|---|---|
| Up to $25,000 | 1.4% of the dutiable value |
| $25,001 to $130,000 | $350 plus 2.4% of the amount above $25,000 |
| $130,001 to $960,000 | $2,870 plus 6% of the amount above $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 amount above $2,000,000 |
If you are buying the property as your principal place of residence, different (concessional) rates may apply. Always check the SRO Victoria website for the most current rates before settlement, as rates can be updated by the state government.
How is stamp duty calculated?
Stamp duty is calculated on a sliding scale. You pay the base amount for your bracket, plus a percentage on the portion of the value that exceeds the bracket threshold.
Here is a worked example for a $700,000 property:
- The purchase price falls in the $130,001 to $960,000 bracket.
- Base duty for this bracket: $2,870
- Amount above $130,000: $700,000 minus $130,000 = $570,000
- 6% of $570,000 = $34,200
- Total stamp duty payable: $37,070
This is before any concessions are applied. If you qualify as a first home buyer or meet another concession eligibility, your actual liability could be significantly lower. Your conveyancer can confirm which concessions apply to your situation before you get to settlement, so there are no surprises.
Stamp duty concessions in Victoria
Victoria offers several concessions that can reduce, or in some cases eliminate, the stamp duty you owe.
First home buyers
If you are purchasing your first home, you may be eligible for a significant duty reduction through the First Home Buyer Duty Exemption or Concession. Here is how it works:
- Full exemption: Properties with a dutiable value of up to $600,000 attract no stamp duty at all.
- Sliding scale concession: Properties valued between $600,001 and $750,000 attract a partial concession. The concession reduces gradually as the price approaches $750,000.
- Standard rates: Properties above $750,000 are subject to standard land transfer duty rates with no first home buyer concession.
To qualify, the property must be your first home in Australia, you must be an Australian citizen or permanent resident, you must be at least 18 years old, and you must occupy the home as your principal place of residence for 12 continuous months starting within 12 months of settlement. Our team handles first home buyer conveyancing regularly and can confirm your eligibility early in the process.
Off-the-plan purchases
If you are buying a property off-the-plan, a concession is available for owner-occupiers. Stamp duty is calculated on the land value only, not the total contract price including construction. This can result in a substantially lower duty figure depending on the stage of construction at the time of contract.
The rules around off-the-plan concessions have changed in recent years, so it is worth confirming your specific situation with a conveyancer before assuming the concession applies.
Pensioners and concession cardholders
Eligible pensioners and concession cardholders may qualify for a duty reduction on a principal place of residence purchase. Eligibility is assessed by the SRO and depends on your card type, the property value, and other criteria. Speak with your conveyancer to understand whether you may qualify before settlement.
When do you pay stamp duty?
In Victoria, stamp duty is due at or before settlement. You do not pay it when you sign the contract of sale. Your conveyancer will calculate the duty, confirm any applicable concessions, and arrange for payment as part of the settlement process.
If you have a home loan, your lender will typically require confirmation that stamp duty has been paid before they release funds. This is all managed through your conveyancing process, so you do not have to deal with the SRO directly.
Can stamp duty be added to your mortgage?
Generally, no. In Victoria, stamp duty must be paid separately at settlement and cannot be folded into your home loan. It is a cost you need to have ready in cash or usable equity before settlement day.
Some lenders may allow stamp duty to be capitalised into a loan in specific circumstances, but this is not standard practice and is not guaranteed. If you are unsure how you will fund your stamp duty payment, speak with your mortgage broker early in the process. Your conveyancer can let you know the exact figure well ahead of your settlement date so you can plan accordingly.
What else affects the stamp duty amount?
A few other factors can influence what you pay:
- Foreign purchaser additional duty: If you are not an Australian citizen or permanent resident, an 8% surcharge applies on top of standard land transfer duty rates.
- Property type: Commercial property, vacant land, and investment properties may attract different rates or concessions compared to owner-occupied residential property.
- Transfer type: Transfers between family members, or through deceased estates, may be treated differently under Victorian duty law.
If your situation is not straightforward, getting advice from an experienced conveyancer early is the best way to avoid unexpected costs at settlement. Our team at Tick Box Conveyancing works across residential, off-the-plan, and commercial conveyancing and can give you a clear answer on what duty applies to your specific purchase.
Need help understanding your stamp duty obligations?
Our team can walk you through the numbers before you sign. We will confirm whether any concessions apply, calculate your expected duty, and make sure settlement goes smoothly.
Call 1300 363 165 or get a free quote online.
Recent Comments