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

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Victoria’s land transfer duty — commonly called stamp duty — uses a five-bracket progressive scale that remained unchanged for 2026–27. For a standard residential purchase at $750,000 by a non-first-home buyer, duty payable is approximately $41,570. First home buyers benefit from a full exemption on properties valued up to $600,000, with a concessional phase-out to $750,000. Unlike some other states, the Victorian first home buyer exemption applies to both new and existing homes. A separate principal place of residence (PPR) concession also applies for homes up to $550,000, offering a reduced rate even to non-first-home buyers who will occupy the property. Foreign purchasers pay an additional 8% on top of standard duty, meaning a foreign buyer purchasing a $750,000 property would pay approximately $101,570 in combined duty and surcharge. The First Home Owner Grant (FHOG) of $10,000 is available in regional Victoria for new homes valued at $750,000 or less (reduced to $10,000 for metropolitan Melbourne, or unavailable in some cases depending on the settlement date and location).

VIC Land Transfer Duty Rates 2026-27

The general transfer duty rates for land and property in Victoria — applicable to purchases that do not qualify for a concession or exemption — are as follows for 2026–27:

  • $0 – $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: a flat rate of 5.5% of the total dutiable value
  • $2,000,001 and above: $110,000 plus 6.5% of the amount over $2,000,000

The switch to a flat 5.5% rate for properties between $960,001 and $2,000,000 means duty increases proportionally with price across this range, rather than through smaller incremental brackets. The step up to 6.5% above $2,000,000 is the highest bracket and applies to premium residential and commercial transactions.

Worked Examples

$400,000 property (non-PPR, non-first-home)

  • Duty: $2,870 + (6% × ($400,000 − $130,000))
  • = $2,870 + (6% × $270,000) = $2,870 + $16,200
  • Total duty: approximately $19,070

$750,000 property (non-PPR, non-first-home)

  • Duty: $2,870 + (6% × ($750,000 − $130,000))
  • = $2,870 + (6% × $620,000) = $2,870 + $37,200
  • Total duty: approximately $40,070

$1,200,000 property

  • Duty: 5.5% × $1,200,000
  • Total duty: approximately $66,000

$2,500,000 property

  • Duty: $110,000 + (6.5% × ($2,500,000 − $2,000,000))
  • = $110,000 + (6.5% × $500,000) = $110,000 + $32,500
  • Total duty: approximately $142,500

Principal Place of Residence (PPR) Concession

Victoria offers a concessional duty rate for purchasers who buy a property valued up to $550,000 and intend to use it as their principal place of residence. This concession is available to purchasers who are not necessarily first home buyers — a buyer who has previously owned a home but is now purchasing a new principal residence may qualify.

The PPR concession applies a reduced scale of duty rates. For a property with a dutiable value of up to $550,000, the concessional rate replaces the general rate, lowering the duty payable. The largest benefit is at the lower end of the price range, where the difference between the general rate and the PPR rate is proportionally greatest.

Properties above $550,000 do not receive the PPR concession and are assessed under the general rates. The purchaser must occupy the property as their principal place of residence for at least 12 months within 12 months of settlement.

First Home Buyer Duty Exemption and Concession

Victoria’s first home buyer stamp duty relief is structured in two tiers and applies to both new and existing homes.

Full Exemption (Up to $600,000)

An eligible first home buyer purchasing a property with a dutiable value of $600,000 or less pays no land transfer duty. This is a full exemption — the duty liability is zero. The exemption applies to new homes, existing homes, and vacant land intended for building a first home.

Concessional Rate ($600,001 – $750,000)

For properties valued between $600,001 and $750,000, a sliding concessional rate applies. The duty payable increases progressively from zero at $600,000 to the full PPR concessional rate at $750,000. A property purchased at $700,000 would attract a reduced but non-zero duty figure, while the same property at $600,001 would attract a negligible amount.

Eligibility for the First Home Buyer Concession

To qualify, all purchasers must be natural persons (not companies or trusts), at least 18 years old, and at least one must be an Australian citizen or permanent resident. None of the purchasers can have previously owned residential property in Australia or received a first home duty exemption, concession, or grant in any state or territory. The property must be occupied as the purchaser’s principal place of residence for at least 12 months within 12 months of settlement.

Foreign Purchaser Additional Duty

Foreign purchasers acquiring residential property in Victoria must pay an additional duty of 8% on the dutiable value, on top of the standard transfer duty. This additional duty was introduced alongside similar measures in other states and applies at the time of settlement.

The surcharge applies to foreign natural persons (individuals who are not Australian citizens or permanent residents, and who are not ordinarily resident in Australia), foreign corporations, and trustees of foreign trusts. A New Zealand citizen holding a Special Category Visa (subclass 444) is generally not a foreign person for duty purposes.

A foreign person purchasing a $750,000 residential property in Victoria would pay:

  • Standard duty: approximately $40,070
  • Additional duty (8% of $750,000): $60,000
  • Combined total: approximately $100,070

The additional duty cannot be offset by the first home buyer exemption or the FHOG. A foreign person does not qualify for the first home buyer duty exemption even if they meet all other first home buyer criteria.

First Home Owner Grant (FHOG) in Victoria

Victoria’s FHOG provides $10,000 for eligible first home buyers purchasing or building a new home. The grant is administered by the State Revenue Office.

Key conditions for the FHOG:

  • The home must be a new dwelling (not previously occupied or sold as a residence)
  • The property value (house and land combined) must not exceed $750,000
  • At least one applicant must be an Australian citizen or permanent resident
  • The home must be occupied as the principal place of residence for at least 12 months

The FHOG in Victoria has been reduced and reformed over successive state budgets. The current $10,000 amount applies statewide, though earlier versions of the grant offered higher amounts, including up to $20,000 in regional areas. Buyers should confirm the current grant amount for their specific location and settlement date with the SRO.

Interaction of Concessions: A Comparative Example

A first home buyer purchasing a new home in Victoria for $620,000 would receive a concessional duty rate (partial exemption, close to zero), and may qualify for the $10,000 FHOG. The combined benefit — near-zero duty plus a cash grant — can exceed $30,000 in total upfront savings compared with a non-first-home investor purchasing at the same price point.

A non-first-home buyer purchasing an existing home for $500,000 as their principal place of residence would pay duty at the PPR concessional rate, which is lower than the general rate but higher than zero. An investor purchasing the same $500,000 property would pay the full general duty rate, which would be several thousand dollars higher than the PPR rate.

Frequently Asked Questions

Why does Victoria’s 5.5% bracket apply as a flat rate rather than a marginal rate?

For properties between $960,001 and $2,000,000, Victoria applies a flat 5.5% rate on the entire dutiable value rather than a marginal calculation. This means duty scales linearly with price across this range. It is a structural feature of Victoria’s duty legislation and differs from most other brackets, which use a marginal calculation.

Can I claim both the PPR concession and the first home buyer exemption?

No. The first home buyer exemption or concession replaces the PPR concession. A purchaser who qualifies as a first home buyer receives the first home buyer benefit, which is more generous than the PPR concession at all price points where both are available.

Does the foreign purchaser additional duty apply to commercial property?

The 8% additional duty applies to residential property, which includes vacant land zoned for residential use. Commercial, industrial, and primary production land is generally not subject to the surcharge, though mixed-use properties may be partially subject depending on the residential component.

If I buy off-the-plan, when is the duty calculated?

Off-the-plan purchases may benefit from a concessional treatment where the construction costs already incurred at the contract date are deducted from the dutiable value. This can significantly reduce the duty payable compared with a completed property at the same market price. Specific conditions apply and the concession is subject to eligibility.

What happens if I move out before the 12-month residency period ends?

The first home buyer duty exemption and concession, as well as the PPR concession, require continuous occupancy for 12 months. If the purchaser moves out earlier, the SRO may reassess the transaction at the full general duty rate and issue a notice of assessment for the difference, plus penalties and interest.

Is stamp duty payable on the total price including GST?

Duty is calculated on the dutiable value, which for residential property is generally the purchase price or market value of the land and improvements. GST is not separately added to the purchase price for established residential property, but for new homes and land sold as part of a going concern, the treatment may differ. The SRO assesses duty on the total consideration provided by the purchaser.

Data Sources and Currency

This article is based on rates, thresholds, and concessions published by the State Revenue Office Victoria. Key sources include:

Data current as at July 2026. Duty rates, concession thresholds, and surcharge rates are subject to legislative amendment, including through the annual state budget process. Verify with the SRO Victoria or a licensed conveyancer.

Disclaimer

This article provides general information only and does not constitute financial, legal, property, or conveyancing advice. Stamp duty liability, concession eligibility, and surcharge status depend on individual circumstances including citizenship, residency, prior property ownership, and the specific terms of the transaction. Confirm all figures and eligibility with the State Revenue Office Victoria or a licensed conveyancer or solicitor.