Stamp Duty Concessions and How Stamp Duty in Victoria is Calculated

Last updated 16 May 2025

When buying property in Victoria, stamp duty—also known as land transfer duty—is a major cost that often catches buyers off guard. Whether you’re a first home buyer, an investor, or purchasing your next home, understanding how stamp duty in Victoria is calculated and what concessions or exemptions might apply can save you thousands.

In this article, we’ll break down how stamp duty in Victoria works, explore stamp duty in Victoria concessions available, and explain how you can use a stamp duty calculator VIC to estimate your costs before you commit to a purchase.

What Is Stamp Duty?

Stamp duty in Victoria is a government tax applied to the purchase of real estate. In Victoria, this tax is paid to the State Revenue Office (SRO) and must be paid within 30 days of settlement. The amount you owe depends on:

• The purchase price or market value of the property (whichever is higher)
• The type of buyer you are (e.g., first home buyer, investor, pensioner)
• Whether the property is new, existing, or vacant land
• The intended use of the property (principal place of residence vs. investment)

How Is Stamp Duty in Victoria calculated?

The calculation of stamp duty in Victoria follows a sliding scale, meaning the more expensive the property, the higher the percentage of tax you pay. Below is a simplified version of the land transfer duty rates for general buyers:

For example, if you buy a home in Melbourne for $750,000, you can expect to pay approximately $40,070 in stamp duty in Victoria (without concessions).

You can get a more accurate estimate using the stamp duty calculator VIC on the SRO website.

Stamp Duty in Victoria Concessions

Victoria offers a range of stamp duty concessions and exemptions for eligible buyers. These can significantly reduce the upfront cost of purchasing a home.

1. First Home Buyer Stamp Duty in Victoria Concession or Exemption

If you’re a first home buyer purchasing a property in Victoria, you may be eligible for either a full exemption or a concession, depending on the value of your home.

• Full exemption: For homes valued at $600,000 or less
• Concession: For homes valued between $600,001 and $750,000

This applies to both new and established homes and can save buyers up to $31,070 (as of 2024).

Example:

If you buy a house for $640,000 as your first home, you will pay reduced stamp duty in Victoria, significantly less than the standard rate.

2. Principal Place of Residence (PPR) Concession

If you’re buying a property to live in as your primary residence, you may be eligible for the PPR concession. This reduces the duty payable on properties valued up to $550,000.

Even if you’re not a first home buyer, this concession could still apply, as long as the property will be your main residence within 12 months of settlement and you live there for at least 12 continuous months.

3. Pensioner Concession

Eligible pensioners buying a home in Victoria valued at $750,000 or less may be entitled to:

• Full exemption for homes up to $330,000
• Concessions on homes between $330,001 and $750,000

You must hold an approved concession card and plan to use the home as your PPR.

4. Off-the-Plan Concession

Buying a new off-the-plan home? You might be eligible for a reduced stamp duty based on the property’s dutiable value, calculated from the contract price minus the construction cost still to be completed.

This is beneficial if you buy before or during construction, as it can significantly reduce the amount of duty you pay.

5. Young Farmers Exemption/Concession

Young farmers under the age of 35 buying their first farmland property may be eligible for a full stamp duty in Victoria exemption on purchases valued up to $600,000, and a concession on purchases up to $750,000.

How to Check If You’re Eligible

To determine whether you qualify for any of these Victorian stamp duty concessions, you’ll need to:

• Visit the State Revenue Office Victoria website
• Use the stamp duty calculator VIC to input your details
• Check eligibility criteria for each concession or exemption

What Is Dutiable Value?

It’s important to understand the term dutiable value because this is what your stamp duty is based on. It’s the greater of:

• The purchase price you pay for the property, or
• The market value as assessed by the government (especially relevant in related-party transactions)

Any non-dutiable items like furniture or appliances included in the sale may be deducted if properly itemised in the contract.

When Is Stamp Duty in Victoria Paid?

Stamp duty in Victoria must be paid within 30 days of settlement. If you’re using a conveyancer or solicitor, they will typically handle the payment on your behalf through PEXA, the digital settlement platform.

Failure to pay on time can result in penalties and interest charges, so it’s essential to budget for this expense early in the buying process.

Tips to Reduce Your Stamp Duty

1. Buy under $600,000 if you’re a first home buyer to qualify for full exemption.
2. Consider off-the-plan purchases to reduce the dutiable value.
3. Live in the property as your PPR to access residence concessions.
4. Claim pensioner status if applicable.
5. Use a stamp duty calculator VIC to explore different scenarios before making an offer.

Understanding how stamp duty is calculated in Victoria and knowing what stamp duty concessions you’re entitled to can make a big difference when buying property. Whether you’re a first-time buyer, an owner-occupier, or a pensioner, the savings can be substantial if you meet the eligibility criteria.

Always speak to a conveyancer or tax advisor to ensure you’re claiming every concession you’re entitled to, and make use of tools like the stamp duty calculator VIC to plan your budget accurately.

With careful planning, you can reduce the burden of property tax in Victoria and take a confident step toward your new home.