VIC Stamp Duty 2026-27: Calculate Your Victorian Land Transfer Duty

If you’re buying property in Victoria in the 2026-27 financial year, stamp duty — officially called land transfer duty — will be one of your largest upfront costs. Victoria is the most expensive mainland state for stamp duty at the mid-to-high price range. On a $700,000 Melbourne home, you’re looking at roughly $37,000 in duty. A first home buyer purchasing the same property under $600,000 pays zero, but cross that threshold and the bill phases in quickly. Here’s exactly how the numbers work, where the relief is, and why you should never budget without running the calculator first.

How VIC land transfer duty is calculated in 2026-27

Victoria uses a marginal-rate system — you pay a different rate on each slice of the property value, similar to how income tax works. This means the effective rate (the percentage of the total price you actually pay) climbs as the property value increases. For the 2026-27 financial year, the thresholds are unchanged from the previous year:

• On the first $25,000 of the dutiable value: 1.4% of that portion.
• Between $25,001 and $130,000: $350 plus 2.4% of the amount over $25,000.
• Between $130,001 and $960,000: $2,870 plus 6% of the amount over $130,000. This is the band where most Melbourne houses and apartments sit, and the 6% marginal rate is what drives Victoria’s higher overall duty compared to other states.
• Between $960,001 and $2,000,000: a flat 5.5% of the total dutiable value — note the shift from marginal to flat calculation at this level.
• Above $2,000,000: $110,000 plus 6.5% of the amount over $2,000,000.

There is also a concessional rate for principal place of residence purchases valued at $550,000 or less, which reduces the effective duty further at the lower end. However, in Melbourne’s current market, this band captures relatively few transactions.

A key nuance: because the $960,001–$2,000,000 band uses a flat 5.5% rate on the total value rather than a marginal calculation, the duty on a $970,000 property can be lower under the flat rate than what the marginal formula would produce if it continued. This creates a small “duty dip” at that threshold — one of the few structural advantages in Victoria’s scale.

First home buyer duty exemption and concession

Victoria’s first home buyer scheme offers full exemption on properties valued up to $600,000. That means if you’re buying a $580,000 apartment or townhouse as your first home, you pay zero land transfer duty — a saving of roughly $31,000 compared to the standard rate.

Between $600,001 and $750,000, a partial concession applies on a sliding scale. The concession shrinks as the price approaches $750,000, and above that threshold you receive no relief. A buyer at $620,000 still pays some duty, and someone at $740,000 gets only a small reduction. Unlike Queensland or South Australia, Victoria’s relief applies to both new and established homes — you don’t have to buy off-the-plan or build new to qualify.

To be eligible, you must occupy the property as your principal place of residence for at least 12 months within 12 months of settlement, you must be a person (not a company or trust), and you must not have previously owned property in Australia. The exemption also applies to vacant land purchases valued up to $600,000 with the intention to build your first home, though different valuation rules apply

Foreign purchaser additional duty: 8% surcharge

Foreign buyers face an additional 8% surcharge on top of the standard land transfer duty. This applies to buyers who are not Australian citizens, not permanent residents, or not New Zealand citizens holding a special category visa. Temporary residents, foreign companies, and foreign trusts are also captured.

On a $700,000 purchase, the foreign surcharge alone adds $56,000. Combined with the base duty of about $37,000, the total stamp duty bill for a foreign buyer approaches $93,000 — making Victoria, at an effective rate exceeding 13%, the most expensive state in Australia for a non-resident property purchase. The surcharge is calculated on the same dutiable value as the base duty and is payable at settlement alongside the standard transfer duty.

Importantly, the foreign surcharge is not covered by the first home buyer exemption — even if the base duty is fully exempt under the FHB scheme, the 8% foreign surcharge still applies in full if the buyer is a foreign person.

How to use the stamp duty calculator for a Victorian property

The tiered marginal system plus the first home buyer concession taper plus the flat-rate band above $960,000 make Victoria’s stamp duty one of the hardest to estimate by hand. A $10,000 difference in purchase price can shift the duty by $600 or more, and if you’re near a concession threshold, the gap can be much larger.

Use the stamp duty calculator to enter your exact property value, select Victoria as the state, and choose your buyer status — first home buyer, owner-occupier, investor, or foreign purchaser. The calculator automatically applies the correct tiered rates, the first home buyer sliding concession, and the foreign surcharge, so you get one accurate number instead of juggling three different calculations. If you’re buying off-the-plan, the dutiable value may be lower than the contract price because only construction completed to date is counted — that reduction can also be modelled through the calculator.

What changes in VIC from 2025-26 to 2026-27

Victoria’s land transfer duty rates and thresholds remain unchanged from the previous financial year — no CPI indexing, no new bands, and no adjustments to the first home buyer exemption caps. The $600,000 full-exemption threshold and $750,000 upper concession cap have been in place for several years. However, Melbourne property prices have moved during that period, meaning an increasing share of first home buyers exceed the full-exemption threshold and enter the concession taper zone. For this reason, running an accurate calculation against your specific purchase price is more important than relying on the headline exemption number.

The $10,000 First Home Owner Grant (FHOG) for new homes valued up to $750,000 also carries forward into 2026-27 unchanged. The grant is administered separately from the duty exemption — you can receive both if you meet the criteria.

Related guides

• Stamp duty states compared: NSW, VIC, QLD, WA, SA (2026) — see how Victoria stacks up against the other mainland states
• First home buyer grants by state 2026 — FHOG and other grants across every state
• Foreign buyer stamp duty surcharges across Australia 2026 — how the 8% VIC surcharge compares nationally

Data sources and as-at date

All rates, thresholds and concession rules in this article are sourced from the State Revenue Office Victoria (SRO Victoria) and reflect the law as at July 2026 for the 2026-27 financial year. Specific documents referenced include the Duties Act 2000 (Vic), the current SRO land transfer duty calculator and published rates page, and the first home buyer duty exemption/concession guidelines on the SRO website. The foreign purchaser additional duty rate has been 8% since 1 July 2024. First Home Owner Grant information is sourced from the SRO Victoria FHOG page. Rates and thresholds are verified against official published sources but may change — always confirm the current rate at the SRO Victoria website or with your conveyancer before settlement.

Data current as at: July 2026. SRO Victoria rates, thresholds and concessions may be updated after this date. Always verify your specific duty with the SRO calculator or a qualified conveyancer before making a purchase decision.

Use the calculator, then talk to a broker

Victoria’s stamp duty is complex, expensive, and highly sensitive to small price differences — especially near the first home buyer concession thresholds. Before you sign a contract of sale, run the stamp duty calculator with your exact purchase price and buyer status. It takes less than 30 seconds and the number you get can change your borrowing strategy, deposit plan, or even which property you pursue.

If you need help understanding how stamp duty fits into your total purchase budget — or want to explore whether a lender will capitalise the duty into your loan — speak with an Arrivau licensed mortgage broker. They can assess your full financial picture and provide guidance within one business day.

Disclaimer: This article provides general information only and does not constitute financial, legal, or tax advice. Stamp duty rates, thresholds, concessions, and surcharges are set by the State Revenue Office Victoria and may change without notice. The actual duty payable on your purchase depends on your specific circumstances, including the dutiable value, contract date, buyer residency status, and eligibility for concessions. Always verify the current rate with the SRO Victoria or a qualified conveyancer or solicitor before making a purchase decision. For tax implications — including the capital gains treatment of stamp duty — consult a registered tax agent.