Victoria Stamp Duty 2026-27: Rates, First Home Buyer Concession and Foreign Surcharge
Victoria’s land transfer duty rates for FY2026-27 remain unchanged from the prior year — but the thresholds and concessions that determine what a first-home buyer actually pays are where the savings lie. For a Melbourne property at the median unit price (around $600,000), a first-home buyer eligible for the full concession pays zero stamp duty, while a non-first-home buyer pays approximately $31,070. The gap between these two outcomes — over $31,000 — makes understanding Victoria’s concession system essential before house-hunting.
VIC land transfer duty rates for FY2026-27:
- Up to $25,000: 1.4% of the dutiable value
- $25,001–$130,000: $350 plus 2.4% of the amount over $25,000
- $130,001–$960,000: $2,870 plus 6% of the amount over $130,000
- $960,001–$2,000,000: 5.5% of the full dutiable value (flat rate)
- Over $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 (PPR) purchases up to $550,000, which applies a lower scale that reduces duty for owner-occupiers. For a $500,000 PPR purchase: duty under the concessional scale is approximately $21,970, compared to $25,070 under the general scale — a saving of $3,100.
For a $750,000 Melbourne home (general rates, not PPR-concessional): duty is $2,870 plus 6% of ($750,000 minus $130,000) = $2,870 plus $37,200 = $40,070. For a $1,500,000 home: the flat 5.5% rate applies, so duty is $82,500.
First-home buyer duty exemption and concession: up to $600,000 fully exempt
Victoria offers a full transfer duty exemption for first-home buyers purchasing a property (new or established) with a dutiable value of $600,000 or less. Between $600,001 and $750,000, a sliding concession applies that reduces the duty payable — you still receive some relief, but it phases out as the price approaches $750,000. Above $750,000, no first-home buyer duty concession is available.
The eligibility requirements for the first-home buyer duty exemption in Victoria: the property must be used as your principal place of residence for at least 12 months within the first 12 months of settlement (or completion for new builds). At least one purchaser must be an Australian citizen or permanent resident. You (and your spouse or partner) must not have previously owned residential property in Australia, and must not have received a first-home buyer duty exemption or concession previously.
First Home Owner Grant: $10,000 for new homes in metro Melbourne
The Victorian FHOG is $10,000 for new homes in metropolitan Melbourne (purchase price up to $750,000). In regional Victoria, the FHOG increases to $20,000 for new homes up to $750,000. The grant is only available for newly constructed homes that have not been previously occupied or sold as a place of residence. You can receive both the FHOG and the first-home buyer duty exemption/concession on the same property — unlike NSW, Victoria does not force a choice between the two. This means for a regional first-home buyer purchasing a $600,000 new home: zero duty plus a $20,000 grant equals a total benefit of approximately $51,000 (the duty saving plus the grant).
Foreign purchaser additional duty: 8%
Foreign purchasers acquiring residential property in Victoria pay an additional 8% duty on the dutiable value, on top of the standard land transfer duty. For a $750,000 property, the foreign additional duty alone is $60,000. Foreign purchasers also face an absentee owner surcharge on land tax, currently 4% per annum for residential property (up from 2% in prior years). The combined upfront cost — standard duty plus 8% additional duty — can exceed 13–14% of the purchase price before any other acquisition costs.
The foreign additional duty applies to foreign natural persons (not Australian citizens or permanent residents, and not New Zealand citizens holding a special category visa), foreign corporations, and trustees of foreign trusts. Temporary residents and certain visa holders may be subject to the surcharge depending on their residency status at the date of contract.
Off-the-plan concession: how it works in Victoria
Victoria’s off-the-plan concession allows duty to be calculated on the contract price minus construction costs incurred after the contract date. For a $600,000 off-the-plan apartment where $250,000 of construction is to be completed after the contract: the dutiable value may be reduced to $350,000, bringing duty down from $31,070 to $13,070 (or to zero for a first-home buyer, since $350,000 is under the $600,000 threshold). The off-the-plan concession can interact powerfully with the first-home buyer exemption to produce a zero-duty outcome on properties that would otherwise attract significant duty.
How to budget for VIC stamp duty
Transfer duty is payable within 30 days of settlement (or within 30 days of the liability arising, which is generally the date of the contract becoming unconditional). The funds must be available at settlement — duty is a settlement cost that cannot be deferred. Most lenders do not capitalise stamp duty into the loan unless you have a specific product that allows it, and even then the LVR impact needs to be calculated.
A practical approach for a first-home buyer targeting a $650,000 Melbourne apartment: confirm eligibility for the concession (duty will be a partial amount, not the full $35,570), add the estimated duty plus conveyancing fees (roughly $1,200–$2,500) and mortgage registration and transfer fees (roughly $500 combined) to your savings target, and confirm with your broker that you have sufficient funds to complete.
Information sources
All VIC land transfer duty rates, first-home buyer exemption thresholds, FHOG amounts and foreign additional duty percentages are sourced from the State Revenue Office Victoria as at July 2026. Duty rates for 2026-27 are unchanged from the prior year. Off-the-plan concession rules, PPR concessional rates and eligibility criteria are per the Duties Act 2000 (Vic) and SRO administrative guidance.
Frequently asked questions
Can I get both the FHOG and the duty exemption in Victoria?
Yes, Victoria allows first-home buyers to receive both the FHOG and the duty exemption or concession on the same property, unlike some other states. For a regional buyer purchasing a $600,000 new home, this means zero duty plus $20,000 FHOG.
Does the first-home buyer duty exemption apply to existing homes?
Yes, Victoria’s first-home buyer duty exemption applies to both new and established (existing) homes up to $600,000, with a sliding concession to $750,000. The FHOG, however, only applies to new homes.
How is the off-the-plan concession calculated?
Duty is calculated on the contract price minus the cost of construction work to be completed after the contract date. This can substantially reduce the dutiable value. For a first-home buyer, the reduced dutiable value may fall under the $600,000 threshold even when the contract price exceeds it.
What is the PPR concessional rate?
The principal place of residence (PPR) concessional rate is a lower duty scale for purchases up to $550,000 when the property will be your main home. It can reduce duty by $2,000–$3,000 compared to the general scale. First-home buyers who qualify for the full exemption do not need the PPR rate — the exemption is more valuable.
Next step: calculate your Victorian stamp duty
Transfer duty is a major upfront cost that affects your total funds required to complete a purchase. To see your estimated duty, FHOG eligibility and how it fits into your borrowing capacity, speak with an Arrivau licensed mortgage consultant — we respond within one business day.
General information disclaimer
This article is general information only and is not personal financial, tax, legal or credit advice. Victorian transfer duty rates, concessions and thresholds can change. Arrivau Pty Ltd (ABN 81 643 901 599) provides credit assistance as an ASIC Credit Representative, CRN 530978. Obtain independent legal and duty advice from a licensed Victorian conveyancer or solicitor before purchasing property.