Stamp Duty in Victoria: What You'll Pay and What Exemptions Apply

For most home buyers, stamp duty is the largest upfront cost after the deposit itself — and yet it's one that many people don't fully account for until they're deep into the buying process. Understanding what you'll pay, and whether any concessions or exemptions apply to your situation, is an important part of planning your purchase finances correctly from the start.

Here's a clear breakdown of how stamp duty works in Victoria and where the savings opportunities are.

What Is Stamp Duty?

Stamp duty — formally known as land transfer duty in Victoria — is a state government tax applied to property transactions. It's calculated as a percentage of the property's purchase price or market value (whichever is higher) and is payable by the buyer at or before settlement.

The amount you pay scales with the purchase price, and the rates are tiered — meaning different portions of the purchase price are taxed at different rates, similar in structure to income tax brackets.

How Much Is Stamp Duty in Victoria?

For a standard residential purchase by an owner-occupier, the duty rates in Victoria are as follows:

Property Value	Duty Payable
Up to $25,000	1.4% of the value
$25,001 – $130,000	$350 + 2.4% of the amount above $25,000
$130,001 – $960,000	$2,870 + 6% of the amount above $130,000
$960,001 – $2,000,000	$55,000 + 6% of the amount above $960,000
Above $2,000,000	$110,000 + 6.5% of the amount above $2,000,000

To put this in practical terms, on a $750,000 property the stamp duty for a standard purchase would be approximately $40,070. On an $850,000 property, it rises to approximately $46,070. These are meaningful sums that need to be factored into your upfront cost planning alongside your deposit, legal fees, and inspection costs.

First Home Buyer Concessions

The most significant relief available in Victoria is for first home buyers, who can access either a full exemption or a substantial concession depending on the purchase price.

Full exemption — properties valued up to $600,000 First home buyers purchasing a property valued at $600,000 or less pay no stamp duty at all. On a $580,000 purchase, that's a saving of approximately $31,070 — a genuinely significant reduction in upfront costs.

Sliding scale concession — properties valued between $600,001 and $750,000 For properties in this range, first home buyers receive a partial concession that reduces on a sliding scale as the price approaches $750,000. At $650,000 the saving is still substantial; by $749,000 it has tapered considerably.

No concession above $750,000 Once the purchase price exceeds $750,000, the full standard rate applies — even for first home buyers. This threshold is an important consideration if you're a first home buyer looking at properties near that price point, as the stamp duty cost jumps significantly once you cross it.

It's worth noting that these concessions apply to both new and established homes, which is a meaningful distinction from the First Home Owner Grant (which is limited to new properties only).

Principal Place of Residence Concession

For buyers who aren't first home buyers but are purchasing a home to live in — rather than as an investment — a principal place of residence (PPR) concession applies to properties valued between $130,000 and $550,000. This concession reduces the duty payable compared to the standard investment rate.

If you're purchasing an investment property, the full standard rate applies without any concession.

Off-the-Plan Concessions

Buyers purchasing off the plan — where the property is yet to be constructed or is under construction — may be eligible for an off-the-plan concession that reduces the dutiable value of the property. Rather than paying duty on the full contract price, duty is calculated on the contract price minus the value of construction work yet to be completed at the time of the contract.

This concession can result in meaningful savings, particularly on higher-value new developments, though the benefit varies depending on the stage of construction at the time of contract.

Foreign Purchaser Additional Duty

It's worth noting for completeness: overseas buyers and certain foreign entities purchasing residential property in Victoria are subject to an additional stamp duty surcharge of 8% on top of the standard rates. This applies to foreign nationals and temporary visa holders, and is a significant additional cost for those it affects.

An important distinction is when you are buying with a spouse or de-facto partner who is an Australian Citizen or Permanent Resident. In this case there may be exemptions to the above additional duty.

When Is Stamp Duty Paid?

Stamp duty is due at settlement — the day you take ownership of the property. Your conveyancer or solicitor will typically arrange the payment as part of the settlement process, drawing on funds you've provided.

It cannot be added to your home loan in most cases, which is why it needs to be accounted for as a genuine cash cost alongside your deposit. Some lenders will factor stamp duty into their assessment of how much cash you need to have available as part of your genuine savings, so it's worth understanding your lender's requirements early.

Budgeting for Stamp Duty

A useful rule of thumb for Victorian buyers: budget approximately 4–6% of the purchase price for total upfront costs, which includes stamp duty, legal fees, building and pest inspections, and loan establishment costs. For a $700,000 purchase without first home buyer concessions, that's roughly $28,000–$42,000 on top of your deposit.

If you're a first home buyer purchasing below $600,000, the full stamp duty exemption meaningfully reduces this — but all other costs still apply.

The Bottom Line

Stamp duty is a significant cost that varies considerably depending on your buyer type, the purchase price, and whether any concessions apply. Getting clarity on what you'll pay — and whether you're entitled to any relief — is an essential step in planning your purchase finances accurately.

Want to understand the full upfront cost picture for your purchase? Talk to the Cultivate Financial team — we help buyers plan their finances from deposit through to settlement so there are no surprises on the day.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend you consider whether it is appropriate for your circumstances. Stamp duty rates, thresholds, and concessions are subject to change — we recommend confirming current details with the State Revenue Office of Victoria or a qualified adviser before making decisions based on this information.