Stamp Duty Exemptions in Victoria
Tuesday 22 September 2026
When buying a property, it's easy to focus on the purchase price, deposit and home loan. However, there are several upfront costs that also need to be factored into your budget, with stamp duty often being one of the largest.
For many buyers in Victoria, stamp duty can add tens of thousands of dollars to the cost of purchasing a property. The good news is that exemptions and concessions are available for eligible buyers, particularly first home buyers and those purchasing certain types of property.
Understanding how stamp duty works before you buy can help you budget with confidence and avoid unexpected costs.
What Is Stamp Duty?
Stamp duty, officially known as land transfer duty, is a tax charged by the Victorian Government when property ownership is transferred from one party to another.
It applies to most residential property purchases, including established homes, vacant land and house and land packages.
The amount of stamp duty you pay depends on several factors, including:
The property's value
Whether you qualify for an exemption or concession
Whether the property will be your principal place of residence
Your buyer status, such as whether you're a first home buyer
What Is Stamp Duty In Victoria?
In Victoria, stamp duty is calculated using a sliding scale. Generally, the higher the property's dutiable value, the more stamp duty you'll pay.
The dutiable value is usually the purchase price or market value of the property, whichever is greater.
Because stamp duty rates and eligibility requirements can change, it's important to check the latest information with the State Revenue Office before purchasing.
Who Is Eligible For Stamp Duty Exemptions Or Concessions?
Not everyone pays the full amount of stamp duty. Victoria offers several exemptions and concessions that can significantly reduce your upfront costs.
First Home Buyer Duty Exemption
Eligible first home buyers may receive a full stamp duty exemption when purchasing a property below the applicable value threshold.
If the property's value exceeds the exemption threshold but remains within the concession range, buyers may still receive a reduced amount of stamp duty.
Eligibility depends on a number of requirements, including the buyers' previous property ownership and occupancy, age and residency status. The home must also be purchased as a principal place of residence, with SRO occupancy requirements applying.
Stamp Duty Concessions
A concession differs from an exemption.
An exemption removes the stamp duty entirely, while a concession reduces the amount payable.
Depending on the property's value and your circumstances, a concession can still result in substantial savings.
Other Eligible Concessions
Victoria also offers concessions and exemptions in other circumstances, including:
Off the plan purchases
Eligible pensioners
Principal place of residence purchases
Certain family property transfers and deceased estates
Eligibility requirements vary, so it's worth confirming which concessions apply before signing a contract.
Can Investors Receive Stamp Duty Concessions?
In most cases, stamp duty concessions are designed to support owner occupiers rather than investors.
While investors generally pay the full amount of stamp duty, eligibility depends on the specific concession and the intended use of the property.
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Stamp Duty & House And Land Packages
One of the advantages of purchasing a house and land package is how stamp duty is typically calculated.
Unlike buying an established home, where stamp duty is generally based on the value of the completed property, buyers of a house and land package usually pay stamp duty on the land component only, provided the building contract is separate from the land purchase.
This can reduce your upfront purchasing costs, making house and land packages an attractive option for many first home buyers.
It is important to remember that every purchase is different, so buyers should seek advice to understand how stamp duty will apply to their individual circumstances.
Stamp Duty & First Home Buyers
Stamp duty is one of the biggest upfront expenses for first home buyers, which is why understanding available assistance is so important.
Depending on your eligibility, you may benefit from:
A full stamp duty exemption
A reduced stamp duty concession
The First Home Owner Grant
Other Victorian Government initiatives available at the time of purchase
Understanding these benefits early can help you set a realistic budget and determine what you can afford before you start looking for land or a new home.
Planning Your Budget
Stamp duty is only one part of your overall purchasing costs.
You should also budget for expenses such as:
Conveyancing or legal fees
Loan establishment costs
Building and pest inspections where applicable
Moving costs
Utility connections and other settlement expenses
Using a stamp duty calculator can provide a useful estimate, but speaking with a finance professional will give you a clearer understanding of your overall purchasing costs.
Planning Your Purchase With Confidence
Buying a home is one of the biggest financial decisions you'll make, so understanding the costs involved before you commit is essential.
Knowing whether you're eligible for a stamp duty exemption or concession can make a significant difference to your budget, particularly if you're building your first home or purchasing a house and land package.
While Eight Homes doesn't provide financial advice, we work closely with our trusted finance partner Inovayt, who can help you understand your borrowing capacity, estimate your upfront purchasing costs and determine which government incentives or concessions may apply to your circumstances.
By planning early and seeking the right advice, you'll be in a stronger position to move forward with confidence.
What is stamp duty in Victoria?
Stamp duty, also known as land transfer duty, is a government tax paid when purchasing property in Victoria. The amount payable depends on factors such as the property's value and whether you're eligible for any exemptions or concessions.
Who is exempt from stamp duty in Victoria?
Eligible first home buyers, some pensioners and buyers who qualify under specific Victorian Government schemes may receive a stamp duty exemption or concession, depending on their circumstances.
Do first home buyers pay stamp duty in Victoria?
Yes, some first home buyers still pay stamp duty. However, eligible buyers may qualify for a full exemption or a concession depending on the property's value and current Victorian Government thresholds.
What is the stamp duty threshold for first home buyers in Victoria?
The threshold is set by the Victorian Government and may change over time. Buyers should confirm the current thresholds with the State Revenue Office before purchasing a property.
What is the difference between a stamp duty exemption and a concession?
A stamp duty exemption removes the duty payable entirely, while a concession reduces the amount you need to pay.
Does stamp duty apply to house and land packages?
Yes, stamp duty generally applies to house and land packages. However, where the land purchase and construction contract are separate, duty is usually calculated on the land purchase rather than the completed home.
How is stamp duty calculated in Victoria?
Stamp duty is calculated using the property's dutiable value and Victoria's sliding scale, with eligibility for concessions or exemptions also affecting the final amount payable.
Can investors get stamp duty concessions?
Generally, stamp duty concessions are intended for owner occupiers rather than investors. Most investment property purchases attract the full amount of stamp duty unless a specific exemption applies.