How Much Is Stamp Duty in Victoria 2026 — The Complete Guide
Knowing how much is stamp duty in Victoria 2026 is essential for budgeting your property purchase. Stamp duty (officially called land transfer duty) is a state government tax paid by the buyer when purchasing property in Victoria. The amount depends on the property value, whether you are an owner-occupier or investor, and whether you qualify for any stamp duty exemptions first home buyer Victoria concessions. This guide covers every rate, exemption and concession including the off the plan stamp duty concession Victoria buyers can access. Clarity Financial Solutions factors stamp duty into every lending calculation.
Stamp Duty Rates Victoria 2026 — The Current Scale
How much is stamp duty in Victoria 2026 depends on the property’s dutiable value. The current progressive scale for general residential property is: $0 to $25,000 at 1.4%, $25,001 to $130,000 at 2.4%, $130,001 to $440,000 at 5.0% (with a base amount), $440,001 to $550,000 at 6.0%, $550,001 to $960,000 at 6.0% (with a different base), and above $960,000 a premium rate of 5.5% applies. These rates apply to all buyers — first home buyers may qualify for exemptions below.
How much is stamp duty in Victoria 2026 ranges from zero (first home buyer exemption under $600,000) to $82,500+ on premium properties — this guide covers every rate, concession and exemption.
Worked examples at Melbourne price points: $500,000 property — stamp duty approximately $21,970. $650,000 property — approximately $33,070. $800,000 property — approximately $43,070. $1,000,000 property — approximately $55,000. $1,500,000 property — approximately $82,500. These figures are for standard residential purchases by Australian citizens or permanent residents. Foreign buyers pay an additional 8% surcharge on top of these amounts.
Stamp Duty Exemptions First Home Buyer Victoria — What You Qualify For
Stamp duty exemptions first home buyer Victoria are the most significant concession available. For properties valued up to $600,000, first home buyers pay zero stamp duty — a full exemption saving up to $31,070. For properties valued between $600,001 and $750,000, a sliding-scale concession applies — the saving decreases as the property value approaches $750,000. Above $750,000, no first home buyer stamp duty concession applies.
Eligibility for stamp duty exemptions first home buyer Victoria requires: you must be purchasing your first home (never previously owned residential property in Australia), you must be an Australian citizen or permanent resident, at least one buyer must be 18 years or older, you must move into the property within 12 months and live in it as your principal place of residence for at least 12 continuous months. The exemption applies to both new and established properties — unlike the FHOG which is limited to new builds.
Off the Plan Stamp Duty Concession Victoria — How It Works
The off the plan stamp duty concession Victoria allows buyers of new apartments and townhouses to calculate stamp duty on the land component only — excluding the building component at the time of contract. This can save $10,000 to $30,000 depending on the development stage and total property value. The concession applies to both owner-occupiers and investors purchasing off the plan in Victoria.
How does the off the plan stamp duty concession Victoria calculation work? If you purchase a $650,000 off-the-plan apartment where the land component at contract signing is valued at $300,000, stamp duty is calculated on $300,000 (approximately $14,070) rather than $650,000 (approximately $33,070) — a saving of approximately $19,000. The concession applies to contracts signed before the certificate of occupancy is issued. Clarity Financial Solutions confirms whether the off the plan stamp duty concession Victoria applies to your specific purchase and calculates the exact saving.
Foreign Buyer Stamp Duty Surcharge Victoria — 8% Additional Charge
Foreign purchasers — defined as non-citizens and non-permanent residents of Australia — pay an additional 8% stamp duty surcharge on top of the standard duty. On a $900,000 property, the standard duty is approximately $49,070 and the foreign purchaser surcharge adds $72,000 — totalling approximately $121,070. This surcharge applies to all residential property purchases by foreign buyers, including temporary visa holders.
If you hold a temporary visa and are purchasing property in Melbourne, the total stamp duty cost is a significant budgeting consideration. Some buyers become permanent residents before purchasing to avoid the surcharge. Others factor the surcharge into their total acquisition cost. The stamp duty cost for foreign buyers is substantially higher — Clarity Financial Solutions helps visa holder borrowers understand the full purchasing cost before committing.
Stamp Duty vs Annual Property Tax — Victoria's Optional System
Victoria introduced an optional system allowing eligible first home buyers of new properties to pay an annual property tax instead of upfront stamp duty. The annual tax is calculated on the land value and is payable for the life of ownership — replacing the one-off stamp duty payment. This option is designed to reduce the upfront barrier to entry for first home buyers.
Whether the annual tax or upfront duty is cheaper depends on how long you own the property. If you hold for less than 8 to 10 years, the annual tax typically costs less in total. If you hold for 15 years or more, upfront stamp duty is usually cheaper over time. Stamp duty exemptions first home buyer Victoria may provide a better outcome than the annual tax if the property is under $600,000 (because duty is zero). Clarity Financial Solutions models both options at your property value and expected hold period.
How Clarity Factors Stamp Duty Into Your Lending Calculation
Stamp duty is a purchasing cost that must be paid from your own funds — most lenders do not allow stamp duty to be included in the loan amount (unlike LMI which can be capitalised). This means your total required funds are: deposit plus stamp duty plus conveyancer fees plus inspection costs. On a $750,000 property with 10% deposit, total required funds are approximately $75,000 deposit plus $33,000 stamp duty plus $2,000 costs equals $110,000.
For first home buyers who qualify for the stamp duty exemption (property under $600,000), the saving of up to $31,070 can be redirected to a larger deposit — reducing or eliminating LMI. Clarity Financial Solutions calculates the optimal combination of stamp duty concession, deposit size and LMI cost to minimise your total upfront outlay while securing the most competitive rate across 40+ lenders.
Frequently Asked Questions
Approximately $40,070 for a standard residential purchase by an Australian citizen or permanent resident. First home buyers may qualify for a concession reducing this amount if the property is between $600,001 and $750,000.
First home buyers purchasing property under $600,000 pay zero stamp duty (full exemption). Between $600,001 and $750,000, a sliding-scale concession applies. Above $750,000, no concession applies.
It allows buyers of new off-the-plan apartments to calculate duty on the land component only — saving $10,000 to $30,000 depending on the development stage and value. Available to both owner-occupiers and investors.
Yes. Foreign buyers pay an additional 8% surcharge on top of standard stamp duty. On a $900,000 property, total duty is approximately $121,070 (standard $49,070 plus surcharge $72,000).
Generally no. Stamp duty must be paid from your own funds at settlement. Some lenders allow stamp duty to be capitalised for specific products but this is uncommon and increases your LVR.
It depends on your hold period. If you hold for less than 8-10 years, the annual tax is typically cheaper. If you hold for 15+ years, upfront stamp duty costs less overall. Clarity Financial Solutions models both.
Preeti Sidhu
This guide was prepared by Preeti Sidhu, Mortgage Broker at Clarity Financial Solutions (ACL 475676). Information is general in nature and does not constitute financial advice.
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How much is stamp duty in Victoria 2026 depends on property value, buyer type and concession eligibility — from stamp duty exemptions first home buyer Victoria to the off the plan stamp duty concession Victoria. Clarity Financial Solutions factors stamp duty into every lending calculation across 40+ lenders. Book your free stamp duty consultation today.