Complete guide to stamp duty in Victoria for 2026. Learn current rates, first home buyer exemptions, off-the-plan concessions, and how to calculate your costs.
If you're buying property in Victoria, one of the biggest upfront costs you'll face — beyond your deposit — is stamp duty. Officially known as land transfer duty, stamp duty is a state government tax that applies every time property ownership changes hands. Whether you're purchasing your first home in Williams Landing, upgrading to a larger family house in Point Cook, or investing in Melbourne's western suburbs, stamp duty will be part of your settlement costs.
Stamp duty is calculated based on the dutiable value of the property, which is typically the higher of the purchase price or the current market value. It's a one-off payment — you pay it once at the time of purchase, not annually like council rates. In Victoria, stamp duty must be paid within 30 days of settlement, and it's managed by the State Revenue Office (SRO) Victoria.
Stamp duty is one of the largest revenue sources for the Victorian Government. The funds collected contribute to essential state services including healthcare, education, transport infrastructure, and emergency services. While there has been ongoing debate about replacing stamp duty with a broader land tax (as the ACT is gradually doing), Victoria currently has no plans to phase it out.
For buyers in Melbourne's western suburbs like Williams Landing and Point Cook, where median house prices sit between $700,000 and $900,000, stamp duty can easily range from $37,000 to $43,000 for a standard purchase. That's a significant sum on top of your deposit, which is exactly why understanding the exemptions and concessions available to you is so important.
In the sections below, we'll break down the exact rates, show you who qualifies for relief, and walk through real-world calculations for properties in your local price range.
Victoria uses a progressive rate structure for stamp duty — similar to how income tax works. The more expensive the property, the higher the marginal rate on each bracket. The rates below have been in effect for contracts entered into on or after 1 July 2021 and remain current for 2026.
These rates apply to investment properties, second homes, and any property you won't be living in as your principal place of residence (PPR):
If you're buying a home to live in as your main residence (and you're not a first home buyer), you may qualify for slightly reduced rates on properties valued between $130,000 and $550,000:
The PPR concession saves approximately 1% on each dollar in the $130,000–$440,000 bracket compared to the general rates. However, for most properties in Williams Landing and Point Cook — which typically sell well above $550,000 — the PPR concession rate table won't apply, and you'll pay the general rates unless you qualify as a first home buyer.
Think of it like stacking blocks. For a property worth $700,000, you don't pay 6% on the entire amount. Instead:
This progressive approach means the effective rate increases as the property value goes up, but it's always lower than the top marginal rate.
Beyond stamp duty itself, there are additional government charges when purchasing property in Victoria:
These are relatively minor compared to stamp duty but should still be factored into your purchase budget.
The single biggest stamp duty benefit in Victoria is the first home buyer duty exemption. If you're buying your first home and the property is valued at $600,000 or less, you pay zero stamp duty. That's a saving of up to $31,070 — money that stays in your pocket instead of going to the state government.
This exemption applies to both new and established homes, as well as vacant land on which you intend to build your first home (with a land value threshold of $400,000). For first home buyers looking at apartments, townhouses, or house-and-land packages in Melbourne's western suburbs, this threshold can still be achievable — particularly for units and smaller townhouses in areas like Williams Landing and Point Cook.
If your first home costs between $600,001 and $750,000, you won't get a full exemption, but you'll still receive a generous concession on a sliding scale. The closer your property is to $600,000, the bigger the discount. Here's approximately what you'd pay:
Above $750,000, the first home buyer concession disappears entirely, and you'll pay the full standard rate. This is an important threshold to keep in mind — especially in Williams Landing, where the median house price has risen to approximately $879,000 as of late 2025. Many first home buyers in the area are now looking at townhouses and apartments to stay within the concession range.
To qualify for the stamp duty exemption or concession, you must meet all of these requirements:
In addition to stamp duty relief, eligible first home buyers in Victoria may also claim the $10,000 First Home Owner Grant — but only for new homes valued at up to $750,000. This can be combined with the stamp duty exemption for maximum savings. For a first home buyer purchasing a new townhouse in Point Cook for $590,000, the combined savings from the FHOG and stamp duty exemption could exceed $40,000.
Great news for buyers considering new apartments or townhouses — the Victorian Government has extended the temporary off-the-plan duty concession until 20 October 2026. This concession can significantly reduce your stamp duty by allowing it to be calculated on a reduced dutiable value — essentially the land component only, rather than the full contract price including construction costs.
Here's how it works: when you buy an off-the-plan property (one that hasn't been built yet or is under construction), the dutiable value is reduced to reflect only the land value and any completed construction at the date of the contract. The unbuilt portion is excluded. This means:
This concession applies to apartments and townhouses (not standalone houses) and is available to all buyers — owner-occupiers, investors, and first home buyers alike. Given the number of new apartment and townhouse developments in Williams Landing and surrounding suburbs, this is a valuable opportunity for local buyers.
Eligible pensioners and holders of approved Commonwealth concession cards may receive stamp duty relief in Victoria:
This concession is particularly valuable for downsizers looking to move to more manageable properties in Melbourne's west.
If you're a foreign purchaser — meaning you're not an Australian citizen or permanent resident — you'll face a significant additional cost. Victoria charges a Foreign Purchaser Additional Duty (FPAD) of 8% of the property's dutiable value, on top of the standard stamp duty rates.
For a $700,000 property, this means:
This is one of the highest foreign buyer surcharges in Australia (equal with NSW as of 2026). There is a potential exemption if you're purchasing with an Australian citizen or permanent resident spouse — speak with a professional for specific advice on your situation.
How does Victoria stack up? Here's a quick comparison for a $700,000 owner-occupied property:
Victoria generally charges the highest stamp duty of any Australian state, which makes taking advantage of exemptions and concessions even more critical for local buyers.
Let's put the rates into context with worked examples using typical property prices in Williams Landing and Point Cook. All calculations below use the 2026 general (non-PPR) rates, as most properties in these suburbs exceed the $550,000 PPR concession threshold.
A young couple purchasing their first home — a three-bedroom townhouse in Point Cook for $580,000.
Combined with the $10,000 FHOG (if purchasing a new property), this couple saves nearly $40,000 in government charges.
A single buyer purchasing an established three-bedroom house in Williams Landing for $690,000.
Even though the full exemption doesn't apply above $600,000, the concession still saves this buyer over $20,000.
A family upgrading from their first home to a larger four-bedroom house in Point Cook for $800,000. They're not first home buyers, so no exemption or concession applies.
This is a substantial cost that needs to be budgeted on top of the deposit, legal fees, and moving expenses.
An investor purchasing a two-bedroom apartment in Williams Landing for $550,000.
No concessions apply for investment purchases, so the full general rate is payable.
A foreign buyer purchasing a house in Point Cook for $750,000.
The foreign buyer surcharge more than doubles the stamp duty cost, making this a critical consideration for overseas purchasers.
Stamp duty is a significant expense, but with the right strategy, you can potentially save thousands — or even pay nothing at all. Here are the most effective ways to reduce your stamp duty bill in Victoria:
If you're a first home buyer, the single most impactful thing you can do is purchase a property at or below $600,000 to secure a full exemption. Even if your dream home is slightly above this threshold, the savings are substantial — remember, the concession still applies up to $750,000. Consider starting with a townhouse or apartment in areas like Williams Landing or Point Cook, where properties under $600,000 are still achievable, and upgrade later.
The off-the-plan concession (extended to 20 October 2026) can dramatically reduce your stamp duty by basing the calculation on the land component only. For first home buyers, an off-the-plan purchase could bring the dutiable value under $600,000 even if the total contract price is significantly higher — potentially resulting in zero stamp duty and a FHOG of $10,000.
Since stamp duty is calculated on the dutiable value (the higher of contract price or market value), negotiating even a slightly lower price can make a tangible difference. A $10,000 reduction on a $700,000 property saves approximately $600 in stamp duty — and every dollar counts.
Make sure you're claiming every concession you're entitled to. It's possible to combine benefits — for example, a first home buyer purchasing off-the-plan may qualify for both the FHB exemption and the off-the-plan concession, plus the $10,000 FHOG. That's potentially $40,000+ in savings on a single purchase.
Government concessions can change. The off-the-plan concession, for example, has been extended multiple times but is currently set to expire on 20 October 2026. If you're considering a new apartment or townhouse, acting before this deadline ensures you can take advantage of the current savings. Similarly, keep an eye on state budget announcements for any changes to first home buyer thresholds.
A good mortgage broker doesn't just find you a competitive interest rate — they help you understand your total purchase costs, including stamp duty, and structure your finances to minimise expenses. This is where working with a local expert makes all the difference.
At Brokio, we help buyers across Williams Landing, Point Cook, and Melbourne's western suburbs understand exactly what they'll pay in stamp duty — before they start house hunting. Here's what we do:
Stamp duty is one of the biggest hurdles to getting into the property market, but it doesn't have to be overwhelming. Book a free consultation with Brokio today and we'll walk you through your exact costs, savings opportunities, and the best path to your next property purchase.
Disclaimer: Stamp duty rates and concession thresholds are subject to change. The figures in this guide are based on current 2026 rates from the SRO Victoria and are provided as general guidance only. For personalised advice, contact Brokio or consult the State Revenue Office directly.
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