VIC Stamp Duty 2026: Rates, First Home Concession & Foreign Purchaser Additional Duty

In Victoria during the 2026-27 financial year, stamp duty on an $800,000 established home purchased as a principal place of residence is $43,070. Eligible first-home buyers pay zero duty on properties up to $600,000, with a concessional phase-out to $750,000 for both new and existing homes. Foreign purchasers pay an additional 8% duty on top of the standard rate.

This article uses the latest Victorian land transfer duty rates, thresholds, and concessions as published by the State Revenue Office Victoria (SRO) and effective for the 2026-27 financial year. Victoria's duty rates have not been structurally reformed in recent years, meaning the bracket structure remains unchanged, though political discussion around replacing stamp duty with an annual land tax continues. Key statistics: the flat 5.5% band applies between $960,001 and $2,000,000, and the First Home Owner Grant is $10,000 for new homes up to $750,000.

Victorian Land Transfer Duty Rates 2026-27

Victoria uses a progressive scale with a notable flat-rate band for mid-to-high-value properties. The standard rates unchanged for 2026-27 are:

1. $0 to $25,000 · 1.4% of dutiable value
2. $25,001 to $130,000 · $350 plus 2.4% of amount over $25,000
3. $130,001 to $960,000 · $2,870 plus 6% of amount over $130,000
4. $960,001 to $2,000,000 · Flat rate of 5.5% of the total dutiable value
5. $2,000,001 and above · $110,000 plus 6.5% of amount over $2,000,000

The flat-rate structure in band 4 is unusual among Australian jurisdictions. For a property valued at $1,500,000, the duty is 5.5% of the total value rather than a progressively calculated amount, yielding $82,500. Buyers should note the jump at $2,000,001 where the rate returns to a progressive structure starting from a base of $110,000.

Principal Place of Residence (PPR) Concession

Victoria offers a concessional PPR scale for purchasers buying a home they intend to occupy as their principal place of residence, provided the total dutiable value does not exceed $550,000. Above $550,000, the standard scale applies even for owner-occupiers. The PPR concession reduces the duty payable by applying a lower rate at each bracket, specifically designed to benefit entry-level home buyers under the $550,000 threshold.

To qualify for the PPR concession:

1. At least one purchaser must occupy the property as their principal place of residence within 12 months of settlement
2. The purchaser or their spouse must not have claimed the PPR concession on a previous property
3. The continuous residence period must be at least 12 months

First Home Buyer Duty Exemption and Concession

Victoria has one of the more generous first-home buyer stamp duty arrangements, providing full exemption or a concessional rate for both new and existing homes:

Complete exemption (zero duty):

1. New or existing homes priced up to $600,000 · full land transfer duty exemption

Concessional rates (partial duty): 2. New or existing homes priced between $600,001 and $750,000 · duty reduced on a sliding scale that phases out at $750,000

Eligibility requirements include that the purchaser must be an Australian citizen or permanent resident, be at least 18 years old, not have previously owned or received an interest in residential property in Australia, and occupy the property as a principal place of residence for at least 12 continuous months within 12 months of settlement. The exemption applies to the duty on the property itself; any foreign purchaser additional duty is not covered by this exemption.

The $10,000 First Home Owner Grant in Victoria

Victoria's First Home Owner Grant provides $10,000 to eligible first-home buyers constructing or purchasing a new home. Key conditions:

1. The new home must have a total value of $750,000 or less
2. The construction or purchase contract must be entered into on or after 1 July 2013 and the home must not have previously been occupied or sold as a place of residence
3. For regional Victoria, the FHOG was previously $20,000 for contracts up to 30 June 2025; from 1 July 2025 the grant returned to the standard $10,000 statewide
4. At least one applicant must be an Australian citizen or permanent resident
5. The home must be occupied as a principal place of residence for at least 12 continuous months within 12 months of completion or settlement

The FHOG can be received alongside the first-home buyer stamp duty exemption or concession, meaning a first-home buyer purchasing a new home valued at $600,000 could receive both $10,000 from the FHOG and pay zero transfer duty.

Foreign Purchaser Additional Duty in Victoria

Victoria imposes an additional duty of 8% on the dutiable value of residential property acquired by foreign purchasers. This is one of the highest foreign surcharge rates in Australia, matched only by NSW at 9%. Key aspects:

1. The 8% additional duty is calculated on the entire dutiable value of the residential property
2. It applies to foreign natural persons not ordinarily resident in Australia, foreign corporations, and trustees of foreign trusts
3. For a foreign purchaser buying an $800,000 property in Victoria, the total stamp duty cost reaches approximately $107,070: $43,070 standard duty plus $64,000 in foreign purchaser additional duty
4. The additional duty is assessed at the time of settlement and is payable regardless of whether the purchaser qualifies for any first-home buyer exemption or concession on the standard component
5. Temporary residents holding certain visas may be considered foreign persons depending on their residency status under the Duties Act 2000

How the Arrivau Stamp Duty Calculator Helps

Victoria's duty calculation has multiple layers: the standard progressive scale, the PPR concessional scale for properties under $550,000, the first-home buyer exemption phasing between $600,000 and $750,000, and the 8% foreign additional duty. The Arrivau stamp duty calculator at /calculators/stamp-duty/ simplifies this by:

1. Selecting the correct duty scale based on property type, value, and intended use
2. Determining if the PPR concession applies for purchases under $550,000
3. Checking first-home buyer eligibility for the full exemption or sliding-scale concession
4. Adding the 8% foreign purchaser additional duty when applicable
5. Providing a clear, itemised estimate including FHOG entitlement

For a personalised assessment of your broader financial position and borrowing capacity in Victoria, speak with an Arrivau consultant — we respond within one business day.

Internal Links for the Next Decision

Use these arrivau.com resources to plan your Victorian property purchase:

1. /calculators/stamp-duty/ — Estimate your Victorian land transfer duty, first-home buyer concession, and foreign purchaser additional duty
2. /calculators/ — Access the full range of Australian property calculators, including borrowing power and repayment tools
3. /best-home-loans-australia-2026/ — Compare home loan products across lenders available to Victorian borrowers in 2026
4. /foreign-buyer-melbourne-stamp-duty-2026/ — Dedicated guide for overseas purchasers navigating Melbourne's property market
5. /australia-home-loan-glossary-2026/ — Clarify mortgage and property terminology before making your purchase

Information Sources

State Revenue Office Victoria — Land transfer duty rates and thresholds 2026-27 State Revenue Office Victoria — First-home buyer duty exemption and concession guidelines State Revenue Office Victoria — First Home Owner Grant conditions Duties Act 2000 (Vic) — Foreign purchaser additional duty provisions

FAQ

Q: How much stamp duty do I pay on an $800,000 home in Victoria? A: The standard land transfer duty on an $800,000 property in Victoria for the 2026-27 financial year is $43,070. If you are an eligible first-home buyer, a concessional rate applies between $600,001 and $750,000, but at $800,000 you are above the phase-out threshold and would pay the full standard duty.

Q: Does Victoria's first-home buyer exemption cover existing homes? A: Yes. Victoria's first-home buyer duty exemption and concession apply to both new and existing homes, with full exemption up to $600,000 and a concessional sliding scale up to $750,000.

Q: What is the foreign purchaser additional duty rate in Victoria? A: The Victorian foreign purchaser additional duty is 8% of the dutiable value on residential property, applied on top of the standard land transfer duty.

Q: Can I combine the FHOG and the first-home buyer stamp duty exemption in Victoria? A: Yes. An eligible first-home buyer can receive both the $10,000 First Home Owner Grant for a new home valued at $750,000 or less and the stamp duty exemption or concession, as they are separate entitlements with distinct eligibility criteria.

Q: What is the PPR concession and who qualifies? A: The principal place of residence concession applies a reduced duty scale for homes valued at $550,000 or less where the purchaser will live in the property as their main home for at least 12 months. It does not apply above $550,000.

General Information Disclaimer

This article is general information only and is not personal financial, tax, legal or credit advice. Stamp duty rates, thresholds and concessions can change without notice. Arrivau Pty Ltd (ABN 81 643 901 599) provides credit assistance as an ASIC Credit Representative, CRN 530978. Consider your objectives, financial situation and needs, and seek licensed advice before making a property decision. For an assessment of your borrowing position, speak with an Arrivau consultant — we respond within one business day.