Stamp duty, formally called land transfer duty in Victoria, is a state tax payable whenever you buy property. It is calculated on a sliding scale against the purchase price or the market value of the property, whichever is higher, and it is due before or at settlement. For most buyers it is one of the largest single costs in a property purchase after the price of the property itself, so knowing roughly what to expect well before you sign a contract makes a real difference to your budget.
How the standard rate works
Victoria calculates duty using a bracket system rather than a single flat percentage. Each portion of the purchase price is taxed at the rate for its bracket, with a fixed base amount added for anything below that bracket. This means the effective rate you pay rises gradually as the price increases, rather than jumping all at once. The brackets and rates are set by the State Revenue Office of Victoria and are reviewed at the Victorian State Budget most years, so the exact thresholds can shift over time.
First home buyer concessions
Victoria offers meaningful relief for eligible first home buyers. Purchases under a certain threshold can qualify for a full exemption from duty, while purchases in a higher band above that threshold receive a partial concession on a sliding scale, tapering down to nothing as the price approaches the top of that band. These concessions are only available where the buyer meets the eligibility rules, including living in the property as their home, so it pays to check your own circumstances carefully rather than assume you qualify.
Pensioner, foreign purchaser and other adjustments
Eligible pension card holders buying a principal place of residence under a set price can receive a concession capped at a fixed dollar amount. Foreign purchasers, whether individuals or corporations, face an additional duty surcharge on top of the standard rate, calculated as a percentage of the property's value. Off the plan purchases are sometimes assessed on a reduced dutiable value that excludes an estimate of the construction component still to be completed at the time of contract. Purchases made through a trust can also trigger additional considerations that are not fully captured by a general calculator, and this is an area where it is worth getting specific advice before you sign anything.
Frequently Asked Questions
When is stamp duty actually paid?
Duty is generally payable at or shortly after settlement, and in practice your conveyancer or lawyer will arrange for it to be paid as part of the settlement process, often directly from settlement funds.
Is stamp duty the same in every state?
No. Each Australian state and territory sets its own rates, thresholds and concessions. This calculator applies Victorian rates only and should not be used for property in another state.
Can I get a stamp duty concession if I already own a home?
The main first home buyer concessions are only available to genuine first home buyers. If you have owned residential property before, you will generally not qualify, though other concessions such as the pensioner concession may still be relevant depending on your circumstances.