These are estimates based on standard Victoria rates. Actual duty may vary. Use the full calculator → for all states and additional options.
Melbourne median house price is around $900,000 — stamp duty on that is approximately $49,500 for owner-occupiers.
| Property Value | Owner-Occupier | First Home Buyer |
|---|---|---|
| $400,000 | $16,370 | $0 (FHB exempt) |
| $500,000 | $21,970 | $0 (FHB exempt) |
| $600,000 | $27,970 | $0 (FHB exempt) |
| $700,000 | $33,970 | $22,647 (partial concession) |
| $750,000 | $37,970 | $37,970 (no concession) |
| $1,000,000 | $55,000 | $55,000 (flat 5.5%) |
| $1,500,000 | $82,500 | $82,500 (flat 5.5%) |
Victoria First Home Buyer Exemption
Eligible first home buyers pay zero stamp duty on properties valued up to $600,000. A partial (tapered) concession applies for properties between $600,001 and $749,999. Properties $750,000 and above receive no first home buyer concession.
You must be an Australian citizen or permanent resident, have never owned residential property in Australia before, and intend to live in the property as your principal place of residence.
Full exemption up to $600,000 · Tapered to $750,000Victoria uses a sliding scale for properties under $960,000. Properties valued at $960,000 or more are charged a flat 5.5% rate on the full purchase price. Foreign purchasers pay an additional 8% surcharge. For the official current rates, see State Revenue Office Victoria.
| Property Value | Marginal Rate | Max Duty at Band |
|---|---|---|
| $0 – $25,000 | 1.4% | $350 |
| $25,001 – $130,000 | 2.4% | $2,870 |
| $130,001 – $440,000 | 5.0% | $18,370 |
| $440,001 – $960,000 | 6.0% | $49,370 |
| $960,001 and over | 5.5% flat | — |
Victoria has the most aggressive progressive top bracket of any Australian state: properties from $440,001 to $960,000 are charged 6.0% on the slice — half a percentage point higher than NSW's standard rate — and at $960,000+ the duty flattens at 5.5% on the whole price, not just the slice. The flattening creates a small "duty cliff" right at $960,000 where moving from $959,999 to $960,000 saves the buyer about $1,200 in duty even though the property cost more. Buyers and agents quietly use this quirk in negotiations on Melbourne inner-ring stock.
Victoria pioneered the Vacant Residential Land Tax (VRLT) — first introduced in 16 inner and middle-ring Melbourne council areas in 2018, then expanded statewide from 1 January 2025 under the State Taxation Acts Amendment Act 2023. VRLT is levied at 1% of capital improved value in year one, escalating to 2% in year two and 3% in year three of continuous vacancy. While VRLT isn't strictly transfer duty, it is one of the most punitive holding-cost regimes for vacant homes in Australia and a frequent factor in investor due-diligence on Melbourne stock.
On the FHB side, Victoria's first home buyer threshold of $600,000 is below the Melbourne median, so the headline exemption is materially less useful in metro than the equivalent NSW $800,000 threshold. However, Victoria pairs it with a generous off-the-plan dutiable-value deduction that often makes a new apartment substantially cheaper to transact than an equivalent established home — by design, since the policy targets new-housing supply.
The Melbourne median house price was approximately $945,000 in early 2026 (CoreLogic). At that price, the property sits just below the flat-rate threshold of $960,000. The progressive scale applies:
If the same buyer pushed the price up to $960,000 exactly, the duty switches to the flat 5.5% applied to the whole price: $52,800. So adding $15,000 to the price adds $4,130 of duty — about a 27% marginal effective rate on that last $15,000.
Now consider a first home buyer at $700,000 for an established home: the standard duty is about $37,070, but the FHB tapered concession ($600,001–$749,999) reduces this to roughly $11,665 — a saving of about $25,405. The same buyer paying $750,000 would get no concession and pay roughly $40,070, illustrating the $50,000 cliff effect that pushes a lot of FHB purchases to settle at $749,000.
Foreign Purchaser Additional Duty (FPAD). Foreign buyers pay an extra 8% surcharge on residential property (raised from 7% to 8% in mid-2019). The surcharge applies to the dutiable value before any FHB concession. Victoria's Absentee Owner Surcharge of 2% on land tax then applies annually after acquisition, making the long-run holding cost significantly higher than NSW for non-residents on equivalent-value property.
Off-the-plan dutiable-value deduction. For eligible off-the-plan purchases, the buyer can deduct the value of construction not yet completed at the contract date. On a typical new apartment bought "off the plan" while only 30% complete, the dutiable value can be reduced to as little as 30–40% of the sale price — translating to duty cuts of 50–70%. Eligibility is tied to FHB / principal-place-of-residence status and a dutiable-value cap that the SRO Victoria reviews periodically.
Pensioner concession. Eligible age pensioners and DVA pensioners receive a once-in-a-lifetime stamp duty concession on properties valued up to $330,000 (full exemption), tapering to $750,000. This is genuinely useful for downsizers in regional Victoria and outer Melbourne, but its impact is limited inside the metro area because most stock is above the upper cap.
Family farm exemption. Victorian primary production land transferred between related family members under qualifying conditions can attract a full duty exemption under Section 56 of the Duties Act 2000. The exemption is used routinely in succession planning for Goulburn Valley orchards, Western District grazing properties and Gippsland dairy farms. The land use must remain primary production for a minimum period after transfer.
Vacant Residential Land Tax (VRLT). From 1 January 2025, VRLT applies statewide on residential properties that are unoccupied for more than six months in a calendar year. Year-one rate is 1% of capital improved value, year two 2%, year three 3%. Exemptions exist for holiday homes used by the owner more than 28 days a year, properties under construction, and changes of ownership. Builders, developers and absentee owners need to model this into long-run holding-cost forecasts.
Duty is calculated under the Duties Act 2000 (Vic) 2025–26 schedule: progressive brackets from 1.4% up to 6.0% in the $440,001–$960,000 band, then a flat 5.5% on the whole dutiable value above $960,000. FHB threshold full exemption up to $600,000 with tapered concession to $749,999. Foreign Purchaser Additional Duty 8%. Off-the-plan deduction available for eligible new apartments. The model does not include the Pensioner Concession, family farm exemption, or post-acquisition VRLT.
Sources: State Revenue Office Victoria — Land transfer duty; SRO Vic — First home owner duty exemption / concession; SRO Vic — Off-the-plan concession; SRO Vic — Vacant Residential Land Tax; Duties Act 2000 (Vic); CoreLogic Home Value Index for the Melbourne median.
Reviewed: 18 May 2026 · Updated for: 2025–26 Victorian transfer duty; VRLT statewide expansion from 1 Jan 2025 · Editor: AussieCalc Editorial Team
How much is stamp duty on a $500,000 property in Victoria? ▾
Stamp duty on a $500,000 property in Victoria is $21,970 for an owner-occupier. A first home buyer pays $0 because the property is under the $600,000 full exemption threshold.
How much is stamp duty on a $1,000,000 property in Victoria? ▾
Stamp duty on a $1,000,000 property in Victoria is $55,000. This is calculated at the flat 5.5% rate that applies to all properties valued at $960,000 or more. No first home buyer concession applies at this price.
What is Victoria's first home buyer stamp duty threshold in 2026? ▾
In 2026, eligible first home buyers in Victoria pay zero stamp duty on properties up to $600,000. A partial concession applies between $600,001 and $749,999. At $750,000, full stamp duty applies — no concession is available.
What is the dutiable value threshold for the 5.5% flat rate in VIC? ▾
In Victoria, any property valued at $960,000 or more is charged stamp duty at a flat rate of 5.5% on the full purchase price. Below $960,000, the standard progressive brackets apply.
Is there an off-the-plan stamp duty concession in Victoria? ▾
Yes. Eligible buyers of off-the-plan properties in Victoria may be able to reduce their dutiable value by deducting construction costs not yet completed at the contract date. This can significantly reduce stamp duty, particularly for apartments bought early in the construction cycle. Conditions and eligibility caps apply — check the SRO Victoria's current thresholds before committing.
What is Vacant Residential Land Tax and does it apply to me? ▾
VRLT is a Victoria-specific holding tax on residential properties unoccupied for more than six months in a calendar year. From 1 January 2025 it applies statewide (previously inner-Melbourne only). The rate escalates: 1% of capital improved value in year one of vacancy, 2% in year two, 3% in year three. Exemptions cover genuine holiday homes used by the owner more than 28 days a year, properties under active construction or renovation, and recent changes of ownership.
How much extra do foreign buyers pay in Victoria? ▾
Foreign Purchaser Additional Duty is 8% on top of standard transfer duty, applied to the dutiable value of residential land. Foreign owners then pay an additional 2% land tax surcharge (Absentee Owner Surcharge) annually. The combined upfront and recurring cost is amongst the highest in Australia for non-resident buyers.
Is there a stamp duty concession for pensioners in Victoria? ▾
Yes. Eligible age pensioners and DVA pensioners receive a once-in-a-lifetime concession: full exemption on properties up to $330,000, tapered concession up to $750,000. The concession is more impactful in regional Victoria where median prices fall inside the cap; in metro Melbourne it tends to apply mostly to smaller units.
Why does Victoria switch to a flat 5.5% rate above $960,000? ▾
The flat rate is a legacy of the historical Victorian schedule — at high prices the progressive scale was simplified to a single 5.5% on the whole price. The discontinuity creates a small "duty cliff" right at $960,000 where a higher price can actually pay less duty than a lower one. The SRO Victoria treats the threshold as fixed; there's no current proposal to smooth it.
When is Victorian stamp duty due? ▾
Duty must be paid within 30 days of settlement, via the State Revenue Office through the conveyancer or PEXA. Off-the-plan purchases attract duty calculated on the contract dutiable value (after any off-the-plan deduction) and are payable at settlement, not at contract.