Stamp duty in Victoria:
how it is calculated

For most buyers, stamp duty is the biggest cost of buying a home after the deposit. In Victoria it's officially called land transfer duty, it's paid to the State Revenue Office (SRO), and on a typical Melbourne home it runs to tens of thousands of dollars. Here's how the figure is worked out, and the ways it can be reduced.

What duty is charged on

Duty is calculated on the dutiable value of the property, which is the higher of the price you pay and its market value. In most arm's-length sales these are the same thing. The difference matters when property changes hands between family members or below market price: the SRO can assess duty on what the property is actually worth, not on what was paid.

The general rates

Victoria uses a sliding scale, so the rate climbs as the value goes up. At the time of writing, the general rates are:

• Up to $25,000: 1.4% of the value;
• $25,001 to $130,000: $350 plus 2.4% of the amount over $25,000;
• $130,001 to $960,000: $2,870 plus 6% of the amount over $130,000;
• $960,001 to $2,000,000: 5.5% of the whole value;
• Over $2,000,000: $110,000 plus 6.5% of the amount over $2,000,000.

Worked examples

Using the general rates, with no concession:

• $600,000 unit: $2,870 + 6% of $470,000 = $31,070
• $900,000 house: $2,870 + 6% of $770,000 = $49,070
• $1,500,000 house: 5.5% of $1,500,000 = $82,500

Duty is on top of the purchase price, and it isn't included in your deposit. Your lender may or may not let you borrow towards it, so it usually needs to come from savings.

“Buyers budget carefully for the deposit and then discover a duty bill almost as large. Work out the duty before you set your price range, not after.”

First home buyers

Eligible first home buyers pay no duty on a home they'll live in valued at $600,000 or less. Between $600,001 and $750,000 there's a sliding concession, and above $750,000 the general rates apply in full. The thresholds apply to the dutiable value, so a property even slightly over $750,000 loses the concession entirely. Our first home buyer guide explains who qualifies and how the grant and concession work together.

Owner-occupiers

If you're not a first home buyer but will live in the property as your main residence, a lower principal place of residence rate applies to homes valued between $130,000 and $550,000. On a $500,000 home, for example, that saves around $3,100 compared with the general rate. Above $550,000 the general rates apply.

Off-the-plan purchases

If you buy before or during construction, duty may be charged on a reduced value that leaves out construction work not yet done when you sign. A temporary expanded concession for apartments, units and townhouses in a strata development, open to all buyers including investors, was extended again in the 2026–27 State Budget. Our article on off-the-plan duty covers the details, and we'll confirm whether a particular contract qualifies.

Other exemptions and extra charges

• Transfers between spouses or domestic partners of a shared home are generally exempt;
• Transfers to beneficiaries under a will are generally exempt;
• Eligible pensioners may receive a concession on a home they'll live in;
• Foreign purchasers pay an additional 8% duty on residential property, on top of the general rates.

When and how it's paid

Your conveyancer lodges the duty forms with the SRO before settlement, including any concession or exemption you're claiming. The duty is then paid automatically out of the settlement funds through PEXA, so you don't make a separate payment. If a concession is claimed and you later turn out not to be eligible, for example because you didn't move in as required, the SRO can reassess the duty and add interest and penalties.

The bottom line

Stamp duty in Victoria depends on the property's value, how you'll use it and who you are. Use the general rates to estimate the worst case, then check which concessions apply to you. The SRO's online calculator is a good starting point, and your conveyancer will confirm the final figure before you commit. Rates and thresholds change, so always check the current figures before you rely on them.