Stamp Duty Victoria Melbourne 2026 - 5Complete Guide for Melbourne Buyers
Stamp duty (officially land transfer duty) in Victoria is calculated on the dutiable value of the property – the higher of purchase price or market value. In Melbourne 2026, first home buyers pay zero duty on properties valued at or below $600,000, and a reduced concession on properties between $600,001 and $750,000. On a $700,000 property, standard duty is $37,070 – but a first home buyer pays approximately $24,747. On a $600,000 property, a first home buyer pays $0. Off-the-plan purchases by owner-occupiers benefit from a temporary concession (available until 20 October 2026) that can significantly reduce the dutiable value.
Stamp duty is officially called land transfer duty in Victoria, but everyone still calls it stamp duty. It is a one-off state government tax paid at settlement whenever property ownership changes hands — and it is one of the largest upfront costs Melbourne buyers face after their deposit.
Understanding the thresholds before you start making offers is critical. Missing the $600,000 first home buyer exemption threshold by a single dollar costs $31,070 in stamp duty on a $600,001 purchase. Knowing exactly where these thresholds fall – and how the off-the-plan concession can bring a higher purchase price back under the exemption threshold – can save Melbourne first home buyers $20,000–$31,000 in stamp duty alone.
Standard Stamp Duty Rates in Victoria 2026
Stamp duty in Victoria is calculated on a progressive scale based on the dutiable value. Standard rates (non-first-home-buyer, principal place of residence):
| Property Value | Rate | Duty (Standard Buyer) | Duty (First Home Buyer) |
|---|---|---|---|
| $500,000 | 5.5% above $440,000 | $21,970 | $0 (full exemption) |
| $550,000 | 5.5% above $440,000 | $24,970 | $0 (full exemption) |
| $600,000 | 5.5% above $440,000 | $28,070 est. | $0 (full exemption) |
| $650,000 | 5.5% above $440,000 | $31,070 est. | ~$15,500 (concession) |
| $700,000 | 5.5% above $440,000 | $37,070 est. | ~$24,747 (concession) |
| $750,000 | 5.5% above $440,000 | $40,070 est. | $40,070 (no concession above $750K) |
| $900,000 | 6% above $960,000 | $54,000 est. | $54,000 (standard — no FHB concession) |
Estimates based on standard Victorian progressive scale as at June 2026. Confirm exact amounts at sro.vic.gov.au before exchange.
First Home Buyer Stamp Duty Exemption Victoria 2026
The Victorian first home buyer stamp duty exemption provides one of the most significant upfront savings available to Melbourne first home buyers:
- Full exemption: Properties valued at $600,000 or less - first home buyers pay $0 in stamp duty. This applies to both new and established homes and vacant land with a land value of $400,000 or less.
- Partial concession: Properties between $600,001 and $750,000 - duty is reduced on a sliding scale. The concession tapers to zero at $750,000.
- No exemption: Properties above $750,000 - first home buyers pay standard duty rates, same as any other buyer.
⚠ IMPORTANT NOTE ON THRESHOLDS:
The $600,000 and $750,000 first home buyer exemption thresholds have not been changed since July 2017. The Melbourne median house price has increased significantly since then – meaning a growing proportion of first home properties in Melbourne now fall above the $600,000 threshold and receive only partial or no stamp duty concession.
The off-the-plan concession can bring higher-priced properties back under the exemption threshold for eligible buyers.
The Off-the-Plan Stamp Duty Concession - Extended to 20 October 2026
The temporary off-the-plan stamp duty concession allows eligible Melbourne owner-occupiers (including first home buyers and investors) to calculate stamp duty on the reduced dutiable value for off-the-plan apartment and townhouse purchases, rather than the full contract price.
How it works: When you buy an apartment or townhouse off-the-plan, the stamp duty dutiable value is calculated on the land component of the contract price – not the total price including the construction component. For a $700,000 off-the-plan apartment where $400,000 represents construction, stamp duty is calculated on $300,000 – bringing it under the $600,000 first home buyer exemption threshold and resulting in $0 stamp duty.
This concession applies to contracts signed between 21 October 2024 and 20 October 2026. It stacks with the first home buyer exemption and the FHOG for eligible buyers – making off-the-plan purchases in Melbourne’s inner-ring and middle-ring markets particularly financially attractive right now.
Stamp Duty Costs for Foreign Buyers in Melbourne
Foreign purchasers – those who are not Australian citizens or permanent residents – pay an additional Foreign Purchaser Additional Duty (FPAD) of 8% of the property’s dutiable value, on top of standard stamp duty rates. This applies to residential property purchases in Victoria.
On a $700,000 Melbourne property, a foreign purchaser pays the standard $37,070 duty plus 8% FPAD of $56,000 – a total of $93,070. Foreign buyer duty is one of the highest in Australia and must be factored into any investment analysis involving non-Australian-citizen purchasers.
Stamp Duty Concession for Pensioners in Victoria
Victorian pensioners and Department of Veterans’ Affairs Gold Card holders can access a stamp duty concession on properties valued at $600,000 or less (full exemption) and a sliding scale between $600,001 and $750,000 – mirroring the first home buyer thresholds. The property must become the purchaser’s principal place of residence.
When Is Stamp Duty Paid in Victoria?
Stamp duty in Victoria is due and payable within 30 days of the property settlement date. Most conveyancing transactions now settle through PEXA (Property Exchange Australia), and the duty payment is processed electronically at settlement — meaning you need sufficient funds cleared and available on settlement day.
Your mortgage broker coordinates with your conveyancer and lender to ensure all costs – deposit, duty, legal fees – are confirmed and available before settlement is booked. Clarity Financial Solutions includes stamp duty cost confirmation as part of every pre-approval assessment.
Frequently Asked Questions - Stamp Duty Victoria Melbourne 2026
No - a first home buyer purchasing a property valued at exactly $600,000 or less in Victoria pays zero stamp duty. The full exemption applies to both new and established properties under $600,000 when the buyer has never previously owned residential property in Australia and intends to live in the property. This saves approximately $28,070–$31,070 compared to what a standard buyer pays.
Yes. The First Home Guarantee (5% deposit, no LMI) and the Victorian first home buyer stamp duty exemption are separate schemes that operate simultaneously. You do not need to choose one over the other. A Melbourne first home buyer purchasing an $800,000 property under the First Home Guarantee with a 5% deposit ($40,000) does not pay LMI - but does pay standard stamp duty on $800,000 because it exceeds the $750,000 FHB threshold.
Yes - stamp duty applies to vacant land purchases in Victoria. First home buyers can access the full exemption on vacant land with a land value of $400,000 or less (not the $600,000 residential threshold). Pensioner concessions also apply to land under $600,000 in value. Standard duty rates apply to vacant land purchased for investment.
The off-the-plan concession reduces your dutiable value by subtracting the construction component from the total purchase price. If this reduces your dutiable value to $600,000 or less, the first home buyer exemption then applies - resulting in $0 stamp duty. On a $750,000 off-the-plan apartment where $300,000 represents construction, the dutiable value is $450,000 - under the $600,000 threshold - meaning a first home buyer pays $0 stamp duty on a $750,000 purchase. Available for contracts signed before 20 October 2026.
No - stamp duty is not payable when you refinance your existing home loan with the same or a different lender. It only applies when property ownership is transferred - that is, when you buy. Refinancing involves the creation of a new mortgage but not a change in property ownership, so no land transfer duty is triggered.
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Preeti Sidhu
This article was prepared by Preeti Sidhu, Mortgage Broker at Clarity Financial Solutions (ACL 475676). Information is general in nature and does not constitute financial advice. Always consult a licensed mortgage broker before making refinancing decisions.
This article provides general information only and does not constitute financial, tax, legal or credit advice. Information is current as at April 2026. Rates, thresholds and eligibility criteria may change. Readers should seek independent professional advice before making any financial decisions.
Clarity Financial Solutions | ACL 475676 | O&S Services Pty Ltd | ABN: 81 687 299 887 | Credit Representative of Purple Circle Financial Services