Victoria's land transfer duty rates for 2026-27 remain unchanged from the prior year. A $750,000 Melbourne home attracts $40,070 in standard duty — but drops to $0 for an eligible first home buyer purchasing at or under $600,000, with a sliding concession phasing out completely by $750,000. Foreign purchasers pay an additional 8% surcharge, adding $60,000 on that same $750,000 property. Stamp duty is an upfront settlement cost that sits outside your home loan — lenders do not finance it, so it must be budgeted and saved for separately alongside your deposit. Use our stamp duty calculator to run your own numbers before approaching a lender.
VIC Land Transfer Duty Rates 2026-27: The Full Scale
The State Revenue Office Victoria publishes the general rates that apply to all residential purchases not qualifying for a first home buyer concession. The scale is progressive, with five brackets determining the duty payable.
For properties valued up to $25,000, duty is calculated at 1.4% of the dutiable value. This bracket is typically relevant only for vacant land in regional areas or very small lots.
Between $25,001 and $130,000, the formula is $350 plus 2.4% of the amount exceeding $25,000. A $100,000 purchase in this range yields $350 + 2.4% × $75,000 = $350 + $1,800 = $2,150.
Between $130,001 and $960,000 — the bracket that captures the vast majority of Melbourne residential transactions — duty is $2,870 plus 6% of the excess over $130,000. This 6% marginal rate is notably higher than NSW's 4.5% equivalent bracket, which explains why VIC duty costs are higher for mid-range properties.
Between $960,001 and $2,000,000, a flat rate of 5.5% applies to the entire dutiable value. This flat-rate structure differs from the tiered approach in lower brackets.
Above $2,000,000, duty is calculated as $110,000 plus 6.5% of the excess over $2,000,000. There is also a concessional principal place of residence scale for properties up to $550,000 that reduces the duty burden for owner-occupiers in that price range.
Worked Example: $650,000 Melbourne Townhouse
$650,000 falls in the $130,001–$960,000 bracket. Duty: $2,870 + 6% × ($650,000 − $130,000) = $2,870 + 6% × $520,000 = $2,870 + $31,200 = $34,070.
Worked Example: $1,200,000 Family Home
$1,200,000 falls in the $960,001–$2,000,000 bracket. The flat 5.5% rate applies: 5.5% × $1,200,000 = $66,000. This is a simpler calculation than the tiered approach used below $960,000.
Worked Example: $2,500,000 Premium Property
$2,500,000 triggers the top bracket: $110,000 + 6.5% × ($2,500,000 − $2,000,000) = $110,000 + 6.5% × $500,000 = $110,000 + $32,500 = $142,500.
First Home Buyer Duty Concession: $600K Full Exemption
Victoria's first home buyer duty concession has a lower full-exemption threshold than NSW but still delivers meaningful savings for buyers targeting properties in the right price band. The concession applies to both new and established homes — there is no restriction to new builds for the duty benefit.
Properties valued up to $600,000 receive a full stamp duty exemption. Between $600,001 and $750,000, a sliding scale concession applies, with the concession reducing linearly as the price increases. At exactly $750,000, the concession reaches zero — the buyer pays the full standard duty.
Worked Example: $550,000 First Home Purchase
Full exemption applies. Duty: $0. The saving compared to the standard rate is $2,870 + 6% × ($550,000 − $130,000) = $2,870 + $25,200 = $28,070. The buyer retains this entire amount for other costs.
Worked Example: $675,000 First Home Purchase
This sits midway through the phase-out range. Full standard duty: $2,870 + 6% × ($675,000 − $130,000) = $2,870 + $32,700 = $35,570. The concession phase-out fraction is ($750,000 − $675,000) ÷ ($750,000 − $600,000) = $75,000 ÷ $150,000 = 0.5, so 50% of the duty is payable. The buyer pays $35,570 × 0.5 = $17,785 — a saving of $17,785 versus the full rate.
At the median Melbourne house price approaching the high $900,000s, many first home buyers will need to target properties specifically under $750,000 to access the concession. This shapes search behaviour toward units, townhouses, and properties in middle-ring and outer suburbs. For a broader view of financing options in Victoria, see our VIC first home buyer loans guide.
The First Home Owner Grant provides an additional $10,000 for new homes up to $750,000 statewide, doubled to $20,000 for regional Victoria. The FHOG and duty concession can be claimed together on eligible purchases.
Off-the-Plan Concession: Extended to April 2027
Victoria's off-the-plan duty concession allows buyers to deduct outstanding construction costs from the dutiable value before calculating stamp duty. This can reduce duty significantly — in some cases bringing a higher-priced off-the-plan purchase under the $600,000 exemption threshold.
The concession was originally set to expire in October 2026 but has been extended to 21 April 2027, giving buyers an additional six-month window. It is available to both owner-occupiers and investors, not restricted to first home buyers. This makes off-the-plan particularly attractive for buyers who can wait for construction but want to lock in today's duty treatment.
Foreign Purchaser Additional Duty: 8%
Victoria imposes an 8% foreign purchaser additional duty on residential property acquired by foreign individuals, corporations, and trusts. This is calculated on the full dutiable value and added to the standard land transfer duty — no concessions or exemptions apply to the surcharge component.
Worked Example: Foreign Buyer Purchasing a $750,000 Melbourne Unit
Standard duty: $40,070. Foreign additional duty: 8% × $750,000 = $60,000. Total duty payable: $100,070 — two and a half times the standard amount.
Worked Example: Foreign Buyer at $1,200,000
Standard duty: $66,000 (flat 5.5%). Foreign additional duty: 8% × $1,200,000 = $96,000. Total: $162,000. The combined duty exceeds 13% of the purchase price, making the effective transaction cost materially higher than many international buyers anticipate.
Foreign owners also face an absentee owner surcharge on land tax — 2% of the taxable value of the land, on top of standard land tax rates. This annual holding cost compounds the upfront duty burden over the ownership period. For how foreign buyers can structure their financing, read our foreign buyer home loans overview.
NSW vs VIC: The Duty Gap on a $750,000 Home
Comparing the two states on an identical $750,000 property reveals the policy divergence. For a non-first-home buyer, NSW duty is $27,937 versus VIC's $40,070 — a $12,133 gap driven by VIC's higher 6% marginal rate in the mid-range bracket.
For a first home buyer, the gap becomes even starker. NSW fully exempts a $750,000 purchase (under the $800,000 FHBAS threshold), yielding $0 duty. VIC's concession phases out completely at $750,000, meaning the VIC first home buyer pays the full $40,070. This $40,070 difference on the same-priced home is entirely a function of state policy thresholds — it has nothing to do with the property or the buyer's financial position.
For foreign buyers at $750,000, NSW charges $27,937 + $67,500 (9% surcharge) = $95,437, while VIC charges $40,070 + $60,000 (8% surcharge) = $100,070. Despite NSW's higher surcharge rate, VIC's higher base duty means the total foreign buyer cost is $4,633 more in Victoria.
How Stamp Duty Affects Your Borrowing Capacity
Stamp duty is paid at settlement from your own funds — lenders do not include it in the loan amount. For a $750,000 Melbourne purchase with a 20% deposit of $150,000, you also need $40,070 for stamp duty, plus roughly $3,000–$4,000 for conveyancing, building inspection, and loan application fees. The total upfront cash requirement approaches $195,000 before the loan settles.
For first home buyers using the federal First Home Guarantee with a 5% deposit, a $600,000 purchase requires only $30,000 in deposit and $0 stamp duty under the VIC concession. Total upfront cash, including settlement costs, lands around $35,000 — dramatically more accessible than the non-concession scenario.
The takeaway: stamp duty is not an abstract cost. It directly determines how much cash you need at settlement, and therefore which properties are genuinely within your financial reach. Use our stamp duty calculator to model your exact position.
Data Source
All rates, thresholds, and concession rules in this article are sourced from the State Revenue Office Victoria, verified as at July 2026. The 2026-27 financial year maintained the existing rate scale without legislative change. First home buyer duty concession thresholds and foreign purchaser additional duty rates are current as published by SRO Victoria.
FAQ
Does the VIC first home duty concession apply to existing homes?
Yes. Unlike NSW where the FHOG is restricted to new builds, Victoria's duty concession covers both new and established homes equally. An existing apartment at $580,000 attracts zero stamp duty for an eligible first home buyer.
What happens if my property settles above $750,000 due to a valuation adjustment?
If the final dutiable value exceeds $750,000, the first home buyer duty concession does not apply at all — you pay the full standard rate. This is why buying at prices close to the $750,000 threshold carries risk. A small valuation uplift can eliminate the concession entirely.
Can I claim the FHOG and duty concession at the same time?
Yes. If you buy a new home under $750,000 (or under $600,000 for the full duty exemption), you can receive both the FHOG ($10,000 metropolitan, $20,000 regional) and the applicable duty concession. The benefits are independent and stack.
Is the off-the-plan concession available to investors?
Yes. The off-the-plan concession extended to 21 April 2027 is available to all purchasers — owner-occupiers, first home buyers, and investors alike. The deduction of construction costs from dutiable value applies regardless of buyer type.
Does Victoria charge a foreign buyer surcharge on commercial property?
No. The 8% foreign purchaser additional duty applies only to residential property. Commercial and industrial property acquisitions by foreign buyers are not subject to the surcharge, though standard land transfer duty still applies.
How does the absentee owner surcharge work alongside the upfront duty?
The absentee owner surcharge is an annual land tax of 2% of the taxable site value, assessed each year and charged in addition to standard land tax. It applies to foreign owners of residential land regardless of whether they occupy the property. This is separate from the one-off foreign purchaser additional duty paid at settlement — together they significantly raise the total cost of foreign ownership in Victoria.
This article provides general information only and does not constitute financial or legal advice. Stamp duty rates, thresholds, and concessions may change. Verify your specific liability with the State Revenue Office Victoria or a qualified conveyancer before exchange. For personalised guidance on your property purchase, connect with an Arrivau advisor — typically within one business day.