Stamp Duty Percentage Victoria

Have you ever been halfway through a Saturday morning auction, heart racing as the hammer hovers in mid-air, and suddenly wondered, "Hang on, how much stamp duty will this add?" You are not alone. In the flurry of inspections, loan approvals and bidding tactics, stamp duty can feel like a fuzzy after thought until it lands like an extra bedroom's worth of cash on top of your purchase price.

I have written this guide to clear the fog. We will unpack the current percentages, look at real Melbourne numbers, and show you the concessions that can keep thousands in your pocket. Brew a coffee, pull out your calculator app and settle in.

What Is Stamp Duty in Victoria?

Stamp duty (officially "land transfer duty") is a Victorian state tax that must be paid within 30 days of settlement whenever property changes hands. The State Revenue Office (SRO) will not register your title until the duty is cleared, so it is more than a mere line item it can delay you getting the keys.

The duty is calculated on the dutiable value, which is usually the higher of the contract price or the market value. In other words, if you snag a bargain well below a valuer's estimate, the SRO still wants its slice of the true value.

Victorian Stamp Duty Rates 2025: Progressive Tax Structure

Unlike a flat GST style rate, Victoria uses a progressive scale. Picture an income tax ladder: the more expensive the property, the higher the marginal rate on each rung. Below is the schedule that has applied to residential contracts since July 2021 (with brackets adjusted by the SRO in January 2025):

Current Victorian Stamp Duty Rates:

$0 – $25,000: 1.4% of the price
$25,001 – $130,000: $350 plus 2.4% of amount above $25,000
$130,001 – $960,000: $2,870 plus 6% of amount above $130,000
$960,001 – $2 million: Flat 5.5% of price
Above $2 million: $110,000 plus 6.5% of amount above $2 million
Portion above $3,636,000: Additional "premium" 7% marginal rate

The jump at $960,001 surprises many buyers. Up to that mark the rate behaves like income tax (base plus percentage). The moment you spend one dollar more, the calculation switches to a simple 5.5%. Because of the switch, a $1 million townhouse actually attracts slightly less duty than an otherwise identical $960,000 property.

Stamp Duty Calculator Examples: Real Melbourne Properties

Two Bedroom Apartment in Brunswick – $650,000

Duty calculation: $2,870 + 6% × ($650,000 – $130,000) = $35,270 (roughly 5.4%)

Family Home in Ringwood – $950,000

Duty calculation: $2,870 + 6% × ($950,000 – $130,000) = $50,470 (about 5.3%)

Edwardian Terrace in Carlton – $1.4 Million

Duty calculation: 5.5% × $1,400,000 = $77,000 (flat 5.5%)

A quick rule of thumb is to budget slightly more than five per cent unless you cross the $3.636 million "premium" threshold or you qualify for a concession.

First Home Buyer Stamp Duty Exemption Victoria

Remember your first spicy latte on Lygon Street? The first home buyer exemption is almost as satisfying. If your first home's dutiable value is $600,000 or under, your stamp duty is zero. Between $600,001 and $750,000 the discount slides away gradually.

First home buyer eligibility requirements:

You (and your partner, if buying jointly) cannot have owned residential property anywhere before
You must live in the home for at least 12 months within the first year

Money saving tip: Some couples keep their max spend to $600,000 by bumping up the deposit rather than the price. That discipline can shave well over $30,000 off the upfront cost.

Principal Place of Residence (PPR) Concession

Moving into your purchase within 12 months unlocks a separate concession if the price is between $130,000 and $550,000. It is less generous than the first home benefit, but when you stack it with other incentives it can still chop four figures off the bill.

Off the Plan Stamp Duty Concessions Extended to 2026

Buying "off the plan" means the SRO taxes only the value of land plus construction already completed at contract date. Last October the Victorian Government broadened the scheme to spur inner city apartment supply. In the 2025-26 Budget the concession was extended another year, which means contracts signed up to October 2026 still qualify (subject to residency rules and a few complex caps).

If you are flexible on settlement timing and comfortable with construction risk, this can slash tens of thousands even on seven figure apartments in Docklands or Southbank.

Foreign Purchaser Additional Duty (FPAD)

If you are not an Australian citizen or permanent resident, factor in an extra 8% for residential property. This applies on top of ordinary duty and can push the effective rate north of 13% on a family-sized home. It can be a nasty shock for overseas buyers, so check your visa or citizenship status before signing anything.

Commercial Property Stamp Duty Changes

While most readers will be chasing a home, keep an eye on the Commercial and Industrial Property Tax (CIPT). From July 2024 certain commercial acquisitions pay one final stamp duty hit, then a 1% annual land tax kicks in 10 years later. Mixed use sites (think shopfront below, apartment above) need careful advice to avoid unexpected duty.

Stamp Duty Budgeting Checklist: 4 Essential Steps

Use the official calculator: Jump on the SRO calculator (Google "SRO VIC duty calculator"). It updates instantly with every Budget.
Add a buffer: Pad your estimate by one per cent. Registration fees and adjustment of rates can add $1,000 plus to settlement.
Watch the price thresholds: Watch the $600k and $960k cliffs. Even $1 over can change the math.
Separate your funds: Save duty funds separately from your deposit. Banks rarely roll duty into the loan.

Legal Strategies to Minimise Stamp Duty

Stage Your Purchase

Secure land first, then build. Building contracts often qualify for off the plan treatment.

Time Contract Exchange Strategically

Duty crystallises on the contract date, so a post Budget tweak may work in your favour.

Verify PPR Eligibility Early

An honest mistake on who will live there can cost your concession.

Consider Ownership Structure

Check joint tenants vs tenants in common: Ownership structure matters if you hope to claim the pensioner concession later.

There is no secret loophole, but there is plenty of scope to get the paperwork right and maximise what the law allows.

Why Professional Conveyancing Still Matters

Everyone loves a DIY triumph, but conveyancing is not the place to cut corners. A licensed conveyancer will:

Verify your duty figures and concessions before the Digital Duties Form is lodged
Liaise with your bank so duty, title registration and loan funds settle in the same electronic workspace
Respond to SRO queries promptly, preventing costly delays

One misplaced decimal in the form can trigger interest, penalties and even contract default. In a market where the median Melbourne house price sits just above $800,000, professional help is cheap insurance.

Next Steps: Get Professional Stamp Duty Advice

Stamp duty in Victoria is a moving target part percentage, part politics, always subject to annual Budget tweaks. Getting across the numbers now can mean the difference between a smooth settlement and a last minute scramble for extra cash.

If you would like a clear, personal breakdown of your stamp duty exposure or simply want another set of eyes on your Section 32 talk to a local who does this every day.

Contact Pearson Chambers Conveyancing for a no obligation chat and a free Section 32 contract review.

Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au