VIC Stamp Duty 2026-27: Rates, First Home Buyer Exemption & Foreign Surcharge

VIC Stamp Duty 2026-27: Rates, First Home Buyer Exemption & Foreign Surcharge HEHomeLoanAI Editorial·2 July 2026 Victoria stamp duty 2026-27: how much you pay on every Melbourne home price Victoria's land transfer duty rates are unchanged for 2026-27, but the dollars at stake remain high — particularly for buyers above the $960,000 mark, where the flat 5.5% rate applies. First home buyers receive a full exemption up to $600,000 and a concessional rate up to $750,000. Here is the direct answer for every price band. 2026-27 Victorian land transfer duty rates The general rates apply to all residential property purchases where the buyer does not qualify for a concession: Up to $25,000: 1.4% of the dutiable value $25,001–$130,000: $350 plus 2.4% of the excess over $25,000 $130,001–$960,000: $2,870 plus 6% of the excess over $130,000 $960,001–$2,000,000: 5.5% of the total dutiable value (flat rate) Above $2,000,000: $110,000 plus 6.5% of the excess over $2,000,000 There is also a concessional rate for principal place of residence purchases valued at $550,000 or below, which is lower than the general scale.

What you pay at common Melbourne price points

$400,000 property: $2,870 + 6% × ($400,000 – $130,000) = $2,870 + $16,200 = $19,070 $600,000 property: $2,870 + 6% × ($600,000 – $130,000) = $2,870 + $28,200 = $31,070 $800,000 property: $2,870 + 6% × ($800,000 – $130,000) = $2,870 + $40,200 = $43,070 $1,000,000 property: 5.5% × $1,000,000 = $55,000 (flat rate applies) $1,500,000 property: $110,000 + 6.5% × ($1,500,000 – $2,000,000) → note: at $1.5M, you are still in the $960K–$2M flat band. Duty = 5.5% × $1,500,000 = $82,500 $2,500,000 property: $110,000 + 6.5% × ($2,500,000 – $2,000,000) = $110,000 + $32,500 = $142,500 Victoria does not differentiate between owner-occupier and investor rates in the standard duty schedule. The same rate table applies regardless of the purpose of the purchase. However, land tax obligations differ, and investors should factor in the annual land tax separately. First home buyer duty exemption and concession Victoria offers one of the more generous first home buyer stamp duty relief schemes among the major states. The key thresholds for 2026-27: Dutiable value up to $600,000: full stamp duty exemption — you pay zero transfer duty Dutiable value $600,001–$750,000: concessional rate, phasing out on a sliding scale as the purchase price increases The exemption and concession apply to both new and existing homes. Eligibility requires that you be a first home buyer (neither you nor your spouse/partner has previously owned residential property in Australia), that you occupy the home as your principal place of residence for at least 12 months within 12 months of settlement, and that you are an Australian citizen or permanent resident. The value of this exemption is meaningful. A first home buyer purchasing a $600,000 Melbourne apartment saves $31,070 in stamp duty — effectively a 5.2% discount on the purchase price. At the upper end of the concession range ($750,000), the concessional rate still provides a substantial reduction compared to the standard schedule. First Home Owner Grant (FHOG) Victoria's FHOG is $10,000 for eligible first home buyers purchasing or building a new home. The price cap is $750,000. The FHOG is available in addition to the stamp duty exemption or concession — a first home buyer purchasing a new home in Melbourne for $600,000 can receive both a full stamp duty exemption (saving $31,070) and the $10,000 grant. Foreign purchaser additional duty Foreign buyers purchasing residential property in Victoria pay an additional 8% duty on top of the standard transfer duty. This surcharge applies to the full dutiable value and is in addition to the rates above, not instead of them. For example, a foreign buyer purchasing a $700,000 Melbourne property pays approximately $37,070 in standard duty plus $56,000 in foreign additional duty — a total of $93,070. Off-the-plan concession Victoria offers an off-the-plan concession that can significantly reduce stamp duty for purchases of properties not yet constructed. Duty is calculated on the dutiable value of the property at the contract date — which, for off-the-plan purchases, is typically the land value plus construction costs incurred to date, rather than the total contract price. This can reduce the dutiable value substantially, particularly for high-rise apartments where construction has not yet begun. Data sources All Victorian land transfer duty rates, thresholds, and concession details above are verified against the State Revenue Office of Victoria (SRO) as at July 2026. The general rate schedule has been unchanged for several years and remains current for 2026-27. Foreign purchaser additional duty and FHOG thresholds are as published by SRO Victoria. Frequently Asked Questions Q: Can I get both the stamp duty exemption and the FHOG? A: Yes, if you meet the eligibility criteria for both. The stamp duty exemption applies to homes up to $600,000, and the FHOG applies to new homes up to $750,000. A first home buyer purchasing a new home for $600,000 receives both. Q: Does the first home buyer exemption apply to investment properties? A: No. You must occupy the property as your principal place of residence for at least 12 months within 12 months of settlement. If you intend to rent the property out, you do not qualify for the exemption or concession. Q: How does the flat 5.5% rate between $960K and $2M affect my total duty? A: At exactly $960,000, duty under the marginal scale is $2,870 + 6% × ($960,000 – $130,000) = $52,670. At $960,001, the flat 5.5% rule activates, yielding 5.5% × $960,001 = $52,800. The jump is small at the boundary but grows as the property value increases — the flat rate becomes more expensive than the marginal scale would have been. Q: Do I pay stamp duty on the full value of an off-the-plan apartment? A: No. For off-the-plan purchases, duty is assessed on the dutiable value at the contract date, which typically excludes construction costs not yet incurred. This can reduce the dutiable value by tens of thousands of dollars compared to the contract price — particularly for apartments in large developments with significant unbuilt components. Next steps Victoria's stamp duty can add tens of thousands of dollars to your purchase cost. An Arrivau licensed adviser can calculate your exact duty payable based on the property's value, your eligibility for concessions, and whether off-the-plan rules apply. An adviser will respond within one business day. Disclaimer: This article provides general information only and does not constitute financial, legal, or tax advice. VIC duty rates, thresholds, and concessions may change. Always verify current rules with the State Revenue Office of Victoria or a qualified professional. #stamp-duty#vic#first-home-buyer#2026-27 Not sure what rate you'd get? Ask the AI — free, unbiased, and no sign-up required. It knows current Australian lending rules and can run the numbers for you. Ask the AI assistant → Keep reading Stamp Duty NT Stamp Duty 2026-27: Rates, HomeGrown $50K Grant & No Foreign Surcharge