Victorian Transfer Duty Guide 2026.

When Victorians buy, inherit, gift or restructure ownership of land, they encounter transfer duty — the tax once universally called stamp duty. It is one of the largest single costs in a property transaction and one of the least well explained. This guide sets out how Victorian transfer duty works in 2026, the concessions and exemptions that materially change what a buyer pays, and the categories of transfer where duty is calculated differently from a standard sale.

Transfer duty in Victoria is administered by the State Revenue Office (SRO) under the Duties Act 2000 (Vic). It is payable by the buyer, or transferee, on the dutiable value of the property — generally the higher of the price paid and the unencumbered market value. Duty is due within 30 days of liability, and electronic settlement workspaces (PEXA) lodge it at the same moment as title transfer.

The sections below address standard rates, the major concessions available in 2026, and the special rules that apply to foreign purchasers, family transfers, deceased estates, related-party transactions and fractional interest transfers. This is general information for Victorian property buyers and owners; for advice on a specific matter, please contact our team.

How standard transfer duty is calculated in Victoria

Victorian transfer duty is a sliding scale based on the dutiable value of the property. The scale climbs in brackets, with each bracket adding a fixed amount plus a percentage of every dollar above the bracket's lower bound. The thresholds and rates have been substantially the same since 2008 and continue to apply in 2026, subject to the SRO's annual confirmation.

• Up to $25,000 — 1.4% of the dutiable value.
• $25,001 to $130,000 — $350 plus 2.4% of the value above $25,000.
• $130,001 to $960,000 — $2,870 plus 6% of the value above $130,000.
• $960,001 to $2,000,000 — a flat 5.5% of the dutiable value.
• Above $2,000,000 — $110,000 plus 6.5% of the value above $2,000,000.

A buyer paying $750,000 for a Melbourne home therefore incurs roughly $40,070 in duty before any concession is applied — almost 5.4% of the purchase price. The same buyer at $1,200,000 pays a flat 5.5%, or $66,000. The flat-rate band between $960,001 and $2,000,000 is a quirk worth remembering: a small change in contract price at the edges of that band can shift duty by several thousand dollars.

Dutiable value is not always the contract price. Where consideration is below market value — gifts, transfers between related parties, transfers for nominal consideration — the SRO assesses duty on the unencumbered market value, supported by a valuation. The SRO can also re-assess after settlement if it later forms the view that the value was understated.

Transfer duty is paid on what the property is worth, not what was paid for it. Pricing tactics that work in commercial negotiation do not reduce duty when the parties are related.

Principal place of residence (PPR) concession

The principal place of residence concession reduces transfer duty for owner-occupiers buying a home valued at $550,000 or less. It is one of two concessions that most often combine in a first-purchase transaction, the other being the first home buyer concession. PEXA applies the PPR concession automatically when the eligibility criteria are met and the relevant statutory declaration is lodged.

To qualify, the buyer must use the property as their PPR for a continuous period of 12 months, starting within 12 months of settlement. The concession reduces duty by a tapered amount: the saving is largest in the $130,001 to $440,000 band, and tapers between $440,001 and $550,000. Above $550,000 the PPR concession does not apply at all — even by a dollar.

The PPR concession can stack with the first home buyer concession where both are available, but only the more favourable outcome is applied. Buyers acquiring with a non-resident spouse, with a discretionary trust, or alongside an investor co-owner can lose the concession entirely on the non-resident or non-occupying share.

First home buyer concession and exemption

Victoria's first home buyer (FHB) scheme provides three things:

• a full exemption from transfer duty for first home purchases up to $600,000;
• a tapered concession on first home purchases between $600,001 and $750,000; and
• no relief above $750,000 — the cliff applies to the dutiable value, not just the contract price.

To qualify, every buyer on title must be a natural person aged 18 or over who has not previously held a relevant interest in residential property in Australia. The buyer must move in within 12 months of settlement and live there for at least 12 continuous months. At least one buyer must be an Australian citizen or permanent resident; New Zealand citizens holding a Special Category Visa qualify in their own right.

The 12-month occupancy condition is unforgiving. A first home buyer who moves out early because of a job posting, a relationship breakdown or an urgent sale generally has to repay the concession. The SRO grants case-by-case relief in genuine compassionate circumstances, but the application must be made promptly and supported by evidence.

For a buyer with a contract just under $600,000, the FHB exemption can mean the difference between paying around $31,000 in duty and paying nothing. Careful planning around the price ceiling — including how chattels, deposits and fixtures are treated in the contract — is one of the most consequential things a first home buyer's lawyer can do before signing.

Pensioner concession

Eligible pensioners receive a one-off transfer duty concession or exemption on a property they will use as their principal place of residence. The exemption is full up to $330,000 and tapered between $330,001 and $750,000. The concession is available once in a lifetime per eligible pensioner and cannot be used in combination with the FHB exemption.

Eligibility is based on holding an approved Centrelink, Department of Veterans' Affairs or Commonwealth Seniors Health Card concession card on the date of contract. The buyer must intend to use the property as their PPR and meet the standard 12-month occupancy condition. Couples who both hold an eligible card can elect which partner uses the concession.

For downsizing pensioners, the concession is most valuable on properties in the $330,001 to $550,000 band, where the saving can exceed $10,000. Above $550,000 the concession remains useful but tapers significantly, and it should be modelled against any FHB concession the spouse may still be entitled to before the election is made.

Off-the-plan concession

The off-the-plan (OTP) concession is the most frequently misunderstood Victorian concession. It is not a discount on duty; it changes the dutiable value. Instead of assessing duty on the full contract price, the SRO assesses duty on the value of the land plus any construction completed at the date of contract. Duty is therefore lower the earlier in the construction cycle a buyer signs.

From October 2024 the Victorian Government temporarily expanded the OTP concession to all OTP buyers — owner-occupiers and investors alike, with no income or price cap — for contracts entered into between 21 October 2024 and 21 October 2025. The expansion was extended in the 2025–26 State Budget to contracts entered into until 21 October 2026, and the Government has flagged intent to legislate a version of it as permanent. Buyers contracting in 2026 should confirm the program's current legislative status with their lawyer before relying on it.

For an OTP apartment selling for $750,000 where 30% of the construction is complete at the date of contract, the dutiable value can drop to around $225,000 plus the land component — a saving that often exceeds $35,000 in duty. The concession does not apply to land already fully developed at contract date, and the SRO expects a quantity-surveyor-style breakdown of the construction cost. Always request the developer's OTP concession statement and supporting evidence before signing.

Foreign purchaser additional duty

Foreign purchasers acquiring residential land in Victoria pay an additional 8% duty on top of the standard rate. The surcharge applies to three categories of buyer:

• foreign natural persons — anyone who is not an Australian citizen, permanent resident, or New Zealand Special Category Visa holder ordinarily resident in Australia;
• foreign corporations — broadly, companies more than 50% foreign-controlled; and
• trustees of foreign trusts — any trust with a substantial foreign interest, defined broadly to capture most off-the-shelf discretionary trusts.

The 8% surcharge is calculated on the share of the property acquired by the foreign purchaser. If an Australian citizen acquires 60% and a foreign spouse acquires 40%, the surcharge applies to 40% of the dutiable value. Combined with the standard scale, a foreign purchaser of a $1m Melbourne apartment can pay duty approaching 13.5% of the price — before federal FIRB application fees are added.

Foreign purchaser additional duty (FPAD) interacts with the federal FIRB approval regime and with Victoria's annual Vacant Residential Land Tax. Foreign purchasers using a discretionary trust structure should obtain advice before signing — many off-the-shelf family trusts inadvertently trigger FPAD because they do not exclude foreign beneficiaries from the class of potential beneficiaries.

Family transfer exemptions and concessions

Transfers between specific family members can qualify for exemption from transfer duty in Victoria. The two most commonly used family exemptions are:

• transfers of a principal place of residence between spouses or domestic partners — full exemption regardless of value;
• transfers under a court order or binding financial agreement following a relationship breakdown — full exemption on property acquired during the relationship.

The PPR spouse transfer exemption is the single largest family-related exemption available in Victoria. It allows one spouse or partner to transfer their interest in the family home to the other for no duty, provided the property is the PPR of both parties at the time of transfer. It applies to married couples and to registered or de facto domestic partners on the same terms.

Transfers of investment properties or commercial property between spouses are not exempt — full duty applies on the share transferred at market value. Transfers to or from a child, parent or sibling are not exempt either; those attract duty on the market value of the share transferred even when no money changes hands. The PPR spouse exemption is narrower than most clients expect, and the boundary is policed strictly.

Deceased estate transfers

Property passing under a will or on intestacy to a beneficiary attracts only nominal duty in Victoria — a small fixed amount — provided the transfer is from the deceased estate to the person entitled under the will or the rules of intestacy. The transfer is documented by a Transmission Application followed by a Transfer of Land lodged in PEXA.

Where beneficiaries agree among themselves to a distribution that differs from the strict terms of the will — for example, one sibling takes the house and others take cash from elsewhere in the estate — the SRO may treat the transaction as a transfer between beneficiaries rather than a transfer from the estate. Full ad valorem duty applies in that case. A deed of family arrangement is the standard tool used to manage this, but it must be drawn carefully and lodged with the SRO before settlement to preserve the nominal-duty position.

Transfers from an executor to themselves in their personal capacity, transfers into a testamentary trust, and transfers involving multiple jurisdictions each have specific evidentiary requirements. Estate practitioners typically request an SRO private ruling for complex matters before lodging the transfer documents, and conveyancers should never accept instructions to register a deceased estate transfer on the assumption that nominal duty applies without verifying the chain of entitlement.

Related-party transactions and transfers for no consideration

A related-party transfer — between siblings, parent and adult child, business partners, related companies or related trusts — is dutiable on the unencumbered market value of the interest transferred. Phrases like "no consideration" or "$1 for love and affection" do not reduce duty: the SRO assesses on what the property is worth, not what was paid.

For valuation, the SRO ordinarily accepts a recent independent valuation from a Certified Practising Valuer. Council valuations and real estate appraisals are generally not accepted. Where a property has unusual characteristics — partial development consent, a long-term tenancy, a heritage overlay, a contaminated-land issue — a valuer's report addressing those issues directly is essential to avoid an SRO re-assessment months after settlement.

Related-party transfers can also trigger capital gains tax consequences at the federal level, land tax re-classification at the state level, and lender consent requirements where there is an existing mortgage. Anyone restructuring family ownership of property should obtain coordinated legal, tax and lending advice before signing — the duty cost is rarely the only cost.

Fractional interest transfers

A transfer of less than 100% of a property — for example, a parent gifting a 20% interest to a child, or a co-owner buying out a partner — is dutiable on the market value of the fractional interest transferred, not on the whole property. The interest is assessed on a strict pro-rata basis: a 20% share of a $1.2m property is treated as a $240,000 dutiable value, which carries roughly $9,470 in duty plus any applicable surcharges.

The Duties Act contains specific provisions for tenants in common, joint tenants, and changes between those tenures. Severing a joint tenancy to create tenants in common with equal shares is generally not dutiable; rebalancing the shares afterwards is. Re-aligning interests inside a self-managed superannuation fund or a discretionary trust environment introduces additional complications and should be handled with specific advice.

Fractional transfers are the quietest trigger of unexpected duty bills in family restructures. The transactions look small — adding a name to title, removing a name on separation, gifting a percentage — but each is a dutiable acquisition under the Act unless an exemption applies. Modelling the duty cost before any document is signed is non-negotiable.

When duty is payable and how it is paid

Transfer duty is payable within 30 days of the date of liability — usually settlement. In an electronic conveyance, the duty is calculated in PEXA, paid out of the buyer's source funds at settlement, and lodged simultaneously with the Transfer of Land for registration. Late payment attracts penalty tax and interest under the Taxation Administration Act 1997 (Vic).

Where a concession or exemption is claimed, supporting documentation — statutory declaration, certified identification, eligible concession card, independent valuation, deed of family arrangement — must be prepared and lodged with the SRO before settlement. Conveyancers and lawyers prepare these as part of the standard settlement file and upload them via Duties Online or PEXA.

Buyers wanting to model the duty payable on a specific contract — including the PPR, FHB, pensioner, OTP and foreign-purchaser scenarios — can use our Victorian stamp duty calculator before signing. The calculator is a useful first pass; it does not replace advice on whether a specific exemption applies to a specific matter.