Guide · Buying

Land transfer duty in Victoria: rates and concessions

Victoria's land transfer duty runs from 1.4% to 6.5%. Rates, the principal place of residence concession up to $550,000, first home buyers and off-the-plan.

Checked on against the official sources at the bottom of the page.

In short

Victoria charges land transfer duty on the higher of the price paid and the market value. The general rate scale runs from 1.4% up to $110,000 plus 6.5% above $2,000,000. If the property will be your home and its value is $550,000 or less, a lower principal place of residence scale applies. First home buyers pay no duty up to $600,000 and a reduced amount from $600,001 to $750,000. These are Victorian rules; the other states differ.

General rates

The State Revenue Office (SRO) publishes these rates for contracts entered into on or after 1 July 2021 (page updated 29 September 2026):

Dutiable valueDuty
$0 to $25,0001.4% of the dutiable value
Over $25,000 to $130,000$350 plus 2.4% of the amount above $25,000
Over $130,000 to $960,000$2,870 plus 6% of the amount above $130,000
Over $960,000 to $2,000,0005.5% of the whole dutiable value
Over $2,000,000$110,000 plus 6.5% of the amount above $2,000,000

Note the step at $960,000: between $960,000 and $2,000,000 the rate applies to the whole value, not just the excess.

Principal place of residence (PPR) concession

If you buy a property valued up to $550,000 to live in, the SRO PPR scale applies instead (any buyer, not only first home buyers):

Dutiable valueDuty
$0 to $25,0001.4%
$25,001 to $130,000$350 plus 2.4% of the amount above $25,000
$130,001 to $440,000$2,870 plus 5% of the amount above $130,000
$440,001 to $550,000$18,370 plus 6% of the amount above $440,000

Over $550,000, the PPR scale does not apply and the general rates are used. The conditions:

  • at least one buyer must move in within 12 months of settlement and live there for 12 continuous months; it need not be the same buyer throughout;
  • for vacant land worth up to $550,000 (excluding the building contract), you must move in by the earlier of 12 months after the occupancy certificate or 36 months after settlement;
  • you must pay market value: a gift or a heavily discounted transfer between related parties does not qualify;
  • if you do not move in on time, or stop living there before 12 months, you must tell the SRO within 30 days.

You claim it on the duty form lodged with the transaction, which your conveyancer or solicitor normally completes.

First home buyers

According to the SRO, a first home buyer pays no duty up to $600,000, and a reduced amount from $600,001 to $750,000. The SRO does not publish a formula on that page; use its calculator for the exact figure. Main conditions on the SRO page:

  • every buyer is an individual aged 18 or over, buying as their home at market value;
  • at least one buyer is an Australian citizen, New Zealand citizen or permanent resident;
  • neither you nor your spouse or partner has received a first home owner grant or first home buyer duty benefit, or owned a home in Australia before 1 July 2000 or lived in one for 6 months or more since (read the exact wording on the SRO page);
  • at least one buyer lives in the home for 12 continuous months within 12 months of settlement;
  • all buyers are enrolled to vote in Victorian elections (serving Army, Navy or Air Force members are exempt from the residency requirement).

Off-the-plan

Duty on an off-the-plan purchase is calculated on the price less construction costs incurred after you sign. Two versions exist:

  • Temporary concession: contracts signed from 21 October 2024 to 21 April 2027, open to all purchasers including investors, for a strata lot with common property (apartments, units, townhouses). The SRO states there is no value threshold.
  • Standard concession (from 1 July 2023): only if you qualify for the PPR concession or the first home buyer relief. After construction costs are deducted the value must be at most $750,000 (first home buyers) or $550,000 (other PPR buyers).

SRO example: a $620,000 apartment with $465,000 of construction costs has a dutiable value of $155,000. The vendor supplies the construction percentage; the adjusted value is generally notified about six months before settlement.

When to pay

The SRO says duty is generally paid at settlement through your conveyancer, solicitor or lender. If duty is not paid within 30 days of settlement, penalty tax and interest may apply.

What it costs

Calculations using the rates above (not quotes), for a property bought to live in:

  • $500,000: general scale $2,870 + 6% × $370,000 = $25,070; PPR scale $18,370 + 6% × $60,000 = $21,970.
  • $750,000: general scale $2,870 + 6% × $620,000 = $40,070. A first home buyer pays a reduced amount.

Foreign purchasers also pay additional duty of 8%: see foreign purchaser surcharge duty. For other states, use the stamp duty calculator and the Victoria page.

Which professional to consult

A conveyancer or solicitor lodges the duty form, claims the concession and pays duty at settlement: see conveyancers. A mortgage broker can include duty in your funding plan: see mortgage brokers.

Frequently asked questions

Can I get the PPR concession on a $600,000 home?

No. The PPR scale only applies to a dutiable value up to $550,000. A first home buyer may still qualify for the first home buyer relief.

Does the SRO use the price or the market value?

The higher of the two is the dutiable value.

Does the off-the-plan concession apply to a house and land package?

The temporary concession (contracts from 21 October 2024 to 21 April 2027) requires a strata lot with common property, so house and land packages outside a strata subdivision do not qualify.

What if I cannot move in within 12 months?

You must notify the SRO within 30 days. Ask the SRO or your conveyancer what follows in your case.

Is the rule the same in New South Wales?

No. See transfer duty in NSW.

More guides on buying

Sources

All guides · Payotte Australia