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 generally due within 30 days of liability, and in an electronic settlement it is paid through the electronic lodgment network workspace (for example, PEXA) at the same time as the transfer is lodged.

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 general brackets below have not been indexed for many years; a premium rate for dutiable values above $2,000,000 applies to contracts entered into on or after 1 July 2021. Rates can change, so confirm them on the SRO website before relying on them.

• 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. The concession is not automatic: it is claimed through the SRO's duties process (usually the Digital Duties Form completed by the buyer's representative), and the SRO assesses eligibility.

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 applies reduced rates to dutiable values between $130,001 and $550,000; the saving is proportionally greatest in the $130,001 to $440,000 band. 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 and concession cardholder duty reduction

For contracts signed on or after 1 July 2023, an eligible pensioner or concession cardholder can receive a one-off duty reduction on a home bought for market value as their principal place of residence. The current reduction is a full exemption where the total property value is $600,000 or less and a concession where it is $600,001 to $750,000. These thresholds apply to the value of the whole property, even when the cardholder buys only a share.

The claimant must hold an eligible concession card on the date of transfer (settlement), acquire the home at market value and satisfy the principal-place-of-residence requirement. At least one eligible cardholder must acquire an interest of at least 25% in the property and satisfy that residence requirement.

The benefit can be received only once. A claimant who previously received a pensioner duty exemption or concession cannot receive it again; in a joint purchase, each person who receives the benefit uses their one entitlement. It cannot be combined with the first-home-buyer duty exemption or concession on the same transaction, although a buyer may still qualify separately for the First Home Owner Grant.

The former full-exemption threshold of $330,000 and concession range of $330,001 to $750,000 apply only to contracts signed before 1 July 2023. They are not the current thresholds for a 2026 contract.

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 by deducting eligible construction costs from the contract price. Under the ongoing OTP concession, which is limited to eligible principal-place-of-residence buyers (dutiable value up to $550,000) and eligible first home buyers, the deduction covers construction carried out on or after the contract date — so the earlier a buyer signs, the lower the dutiable value.

The temporary expanded off-the-plan concession applies to eligible contracts entered into on or after 21 October 2024 and before 21 April 2027 (that is, on or before 20 April 2027). It is available to eligible buyers of strata lots with common property — such as apartments, units and townhouses — including owner-occupiers and investors, without an income or purchase-price cap, and allows a deduction for the full eligible construction costs. It does not apply generally to house-and-land packages. Buyers should confirm that the property and contract satisfy the detailed eligibility rules before relying on the concession.

The saving depends on how the contract price is split between land and construction costs, so it varies widely between developments. Concession eligibility and the deductible amount must be supported by the developer's information about construction costs. Always request that information and confirm eligibility 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 — broadly, trusts in which foreign persons hold a substantial interest, which can include discretionary trusts that do not exclude foreign beneficiaries.

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 of around 13.5% of the price — before any federal foreign investment application fees are added.

Foreign purchaser additional duty (FPAD) sits alongside the federal foreign investment approval regime and Victoria's annual land tax absentee owner surcharge and vacant residential land tax. Buyers using a discretionary trust structure should obtain advice before signing — a family trust can trigger FPAD if its deed does not exclude foreign 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. Typically the executor or administrator first becomes registered proprietor by transmission application, and then transfers the land to the beneficiary, with the documents lodged electronically.

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 its duty treatment confirmed with the SRO before the transfer is lodged.

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 generally payable within 30 days of the date of liability — usually settlement. In an electronic conveyance, the duty is assessed through the SRO's Duties Online system, paid out of the buyer's funds at settlement through the electronic workspace, and the transfer is lodged for registration at the same time. 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 provided to the SRO, usually before settlement. Conveyancers and lawyers prepare these as part of the standard settlement file and submit them through Duties Online.

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.