In short: On a $650,000 house in Victoria, an eligible first home buyer pays about $11,357 in stamp duty, an owner-occupier who is not a first home buyer pays $34,070, and an investor pays $34,070 plus 8% foreign purchaser duty if they are not a citizen or permanent resident. At $600,000 or below, first home buyers pay nothing at all.
Key takeaways
- First home buyers pay zero duty up to $600,000 and a tapering concession up to $750,000, provided they live in the home for 12 months.
- The owner-occupier (PPR) concession only helps between $130,001 and $550,000; above that, owner-occupiers pay the general rate.
- Investors always pay the general rate, and foreign purchasers add 8% of the price on top.
- The general rate between $130,001 and $960,000 is $2,870 plus 6% of the amount over $130,000.
- Off-the-plan apartments and townhouses have a separate temporary concession that ends on 20 October 2026.
Stamp duty, officially land transfer duty, is the biggest single upfront cost after the deposit, and in Victoria the amount swings enormously depending on who you are and what price you pay. This post works through the 2026 brackets at six price points so you can see exactly where the cliffs are. All figures are calculated from the State Revenue Office rate schedule; use the stamp duty calculator for your own price and the SRO's own calculator as the final word.
The 2026 Victorian duty brackets
| Dutiable value | General rate |
|---|---|
| Up to $25,000 | 1.4% of the value |
| $25,001 to $130,000 | $350 plus 2.4% of the amount over $25,000 |
| $130,001 to $960,000 | $2,870 plus 6% of the amount over $130,000 |
| $960,001 to $2,000,000 | 5.5% of the value |
| Over $2,000,000 | $110,000 plus 6.5% of the amount over $2,000,000 |
Two adjustments sit on top of this schedule:
- Principal place of residence (PPR) concession, for homes you will live in, priced $130,001 to $550,000: $130,001 to $440,000 is $2,870 plus 5% of the amount over $130,000; $440,001 to $550,000 is $18,370 plus 6% of the amount over $440,000.
- First home buyer exemption and concession: no duty at all up to $600,000, and a sliding concession from $600,001 to $750,000 where the duty phases in proportionally. At $650,000 you pay one-third of the general duty; at $700,000 two-thirds; at $750,000 the full amount.
Eligibility for the first home buyer concession is covered in stamp duty for Victorian first home buyers. The short version: you and your partner must never have owned property in Australia, and you must move in within 12 months and stay for 12 continuous months. The SRO's first home buyer duty page has the full eligibility rules.
Stamp duty at six price points
| Purchase price | General duty (investor) | Owner-occupier (PPR) | Eligible first home buyer |
|---|---|---|---|
| $500,000 | $25,070 | $21,970 | $0 |
| $600,000 | $31,070 | $31,070 | $0 |
| $650,000 | $34,070 | $34,070 | $11,357 |
| $700,000 | $37,070 | $37,070 | $24,713 |
| $750,000 | $40,070 | $40,070 | $40,070 |
| $900,000 | $49,070 | $49,070 | $49,070 |
How the $650,000 figure is calculated
General duty: $2,870 plus 6% of ($650,000 minus $130,000). Six per cent of $520,000 is $31,200, so the duty is $34,070.
First home buyer concession: the concession tapers between $600,001 and $750,000. At $650,000 you are $50,000 into a $150,000 band, so you pay 50,000 divided by 150,000 of the general duty, which is one-third of $34,070, or $11,357. You save $22,713 compared with a non-first-home-buyer.
Why the $600,000 cliff matters so much
A first home buyer paying $600,000 pays nothing. Paying $610,000 for the same house means duty of about $2,111 (one-fifteenth of $31,670). Paying $650,000 means $11,357. In Melbourne's north, where plenty of established houses in Roxburgh Park, Craigieburn and Epping sit right around that line, negotiating $10,000 off the price can be worth more than $12,000 once duty is counted.
Why the PPR concession disappears above $550,000
The owner-occupier concession was designed for cheaper homes and has not moved with prices. At $500,000 it saves $3,100. At $600,000 it saves nothing, which is why the owner-occupier and investor columns are identical from $600,000 upward. If you are upgrading rather than buying your first home, budget for the full general rate.
Investors and foreign purchasers
An investor buying a $650,000 house in Wollert pays $34,070. If the buyer is a foreign purchaser, meaning not an Australian citizen, permanent resident or, in some cases, a New Zealand citizen who is ordinarily resident, foreign purchaser additional duty adds 8% of the price: another $52,000, bringing total duty to $86,070. Temporary visa holders buying to live in are often caught by this, which is why we walk through it in home loans for visa holders before anyone signs a contract.
Investors also need to remember land tax, which applies every year to investment property but not to your own home.
Duty on house-and-land versus established
If you buy vacant land and sign a separate building contract, duty is charged on the land only, not the finished house. A $340,000 block in Donnybrook attracts $15,470 general duty, $13,370 with the PPR concession, or nothing for an eligible first home buyer, even though the completed home might be worth $700,000. That is one of the reasons house-and-land packages remain popular with first home buyers in the growth corridor, and the First Home Owner Grant of $10,000 for new homes up to $750,000 stacks on top.
Adding duty to your total upfront costs
Duty is not the only cheque you write at settlement. A first home buyer at $650,000 in Melbourne should also budget for:
- Transfer and mortgage registration fees.
- Conveyancing.
- Building and pest inspection.
- Lenders mortgage insurance if borrowing above 80% and not using the First Home Guarantee.
- Moving, connections and a buffer.
The upfront costs calculator totals all of these for you. If you are a first home buyer using the First Home Guarantee with a 5% deposit of $32,500, the $11,357 duty is a significant addition and needs to come from savings, a gift or the grant, so plan it early.
Frequently asked questions
Do I pay stamp duty on a $650,000 house if I am a first home buyer in Victoria?
Yes, but a reduced amount. The full exemption stops at $600,000. Between $600,001 and $750,000 the duty phases in, so at $650,000 an eligible first home buyer pays roughly $11,357 rather than $34,070. You must live in the property for 12 continuous months starting within 12 months of settlement to keep the concession.
When is stamp duty paid in Victoria?
Duty is paid at settlement. Your conveyancer lodges the transfer with the State Revenue Office and the duty is deducted from the funds at settlement, so it must be available in cleared funds on the day. The settlement process in Victoria sets out who does what and when.
Can stamp duty be added to my home loan?
Not directly. Duty is a cost you pay, not something the lender funds, so it must come from your deposit funds. The practical workaround is a larger loan against a lower deposit, which can push your LVR above 80% and trigger LMI. Check the effect with the LVR calculator.
Is the off-the-plan concession still available?
At the time of writing, yes, for contracts signed before 20 October 2026. It applies to apartments and townhouses in strata developments and is available to all buyers including investors. After that date the concession reverts to the much narrower first home buyer and PPR versions. See buying off the plan.
Talk to GNT Finance
We calculate duty, grants and concessions for every client before they make an offer, so there are no surprises at settlement. If you are weighing up a purchase near the $600,000 or $750,000 thresholds, book a free consultation or call Gorakh Timilsina on 0426 403 703 and we will show you exactly what each price means for your cash.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.