A Guide to Stamp Duty in Victoria

Stamp duty is one of the largest upfront costs when buying property in Victoria. Understanding how it's calculated and what concessions are available can save you thousands of dollars.

What Is Stamp Duty?

Stamp duty (officially called "land transfer duty" in Victoria) is a state government tax charged when you purchase property. It's calculated as a percentage of the property's purchase price or market value, whichever is higher.

Victorian Stamp Duty Rates

Stamp duty in Victoria is calculated on a sliding scale. The more expensive the property, the higher the rate. For properties over $2 million, a premium rate applies.

Example Calculations

• $500,000 property — approximately $25,070 in stamp duty
• $700,000 property — approximately $37,070 in stamp duty
• $1,000,000 property — approximately $55,000 in stamp duty

First Home Buyer Concessions

Victoria offers significant stamp duty relief for first home buyers:

• Properties up to $600,000 — Full stamp duty exemption (you pay nothing!)
• Properties $600,001 to $750,000 — Sliding scale concession that reduces the stamp duty payable
• Properties over $750,000 — No concession applies, full stamp duty is payable

Tip: If you're a first home buyer looking at properties near the $600,000 threshold, even a small difference in price can mean thousands in stamp duty savings.

First Home Owner Grant (FHOG)

In addition to stamp duty concessions, first home buyers in Victoria may be eligible for the First Home Owner Grant of $10,000 when purchasing or building a new home valued up to $750,000.

Off-the-Plan Concessions

If you're buying an off-the-plan apartment or townhouse, you may be able to claim a stamp duty concession based on the "dutiable value" at the time of signing the contract, rather than the completed value.

When Do You Pay?

Stamp duty is typically paid at settlement. Your conveyancer or solicitor will arrange this as part of the settlement process. Some lenders allow you to add stamp duty to your loan (known as "capitalising"), though this increases your total borrowing.

Use Our Calculator

Try our free Stamp Duty Calculator to get an estimate for your specific situation. And remember, a mortgage broker can help you understand all the costs involved in buying property.