Quick answer: Victoria stamp duty on a $650,000 property is approximately $34,070. First home buyers pay zero stamp duty on properties up to $600,000 (full exemption), with partial concessions from $600,001 to $750,000. If you buy land and build separately, you only pay duty on the land — not the construction cost — saving $20,000–$40,000 on a typical build. You can also stack the $10,000 First Home Owner Grant on top. Updated April 2026 based on State Revenue Office Victoria data.
Most people don’t realise this until their conveyancer mentions it. Stamp duty — or “land transfer duty” as Victoria officially calls it — is one of the biggest upfront costs when buying property. But if you build instead of buy, you pay duty on the land price alone. The construction cost? Not dutiable.
“Timing your land purchase and build contract separately isn’t just paperwork — it’s one of the biggest financial decisions you’ll make. On a $650K project in Melbourne’s west, keeping those contracts separate can put $24,000 back in your pocket before you’ve even broken ground.” — Emma Whitfield, Property Finance Analyst at BuildBudget
What Are the Victoria Stamp Duty Rates?
Standard Rates (Not First Home Buyer)
| Property Value | Stamp Duty | Effective Rate |
|---|---|---|
| $130,001 – $440,000 | $2,870 + 5% of amount over $130,000 | ~3.5–5% |
| $440,001 – $550,000 | $18,370 + 6% of amount over $440,000 | ~5–5.5% |
| $550,001 – $960,000 | $28,070 + 6% of excess | ~5.5% |
| $960,001+ | 5.5% of total value | 5.5% |
(State Revenue Office Victoria)
Who Qualifies for First Home Buyer Stamp Duty Relief?
| Land/Property Value | Stamp Duty | Saving |
|---|---|---|
| Up to $600,000 | $0 (full exemption) | Save up to $31,070 |
| $600,001 – $750,000 | Reduced rate (sliding scale) | Partial saving |
| Over $750,000 | Standard rate applies | No concession |
(State Revenue Office Victoria)
How Much Do You Save By Building Instead of Buying?
This is where building pulls ahead. Look at the actual numbers:
Example 1: Western Melbourne
| Buying Established | Building New | |
|---|---|---|
| Total value | $650,000 | $650,000 |
| What stamp duty is calculated on | $650,000 (full price) | $280,000 (land only) |
| Stamp duty payable | $34,070 | $10,070 |
| You save | — | $24,000 |
Example 2: First Home Buyer
| Buying Established $550K | Building New (land $250K + build $300K) | |
|---|---|---|
| Stamp duty on | $550,000 | $250,000 |
| First home buyer? | Partial concession (~$12K) | Full exemption ($0) |
| FHOG eligible? | No (established) | Yes ($10,000) |
| Total upfront saving | — | ~$22,000 |
Example 3: Upgrader (Not First Home Buyer)
| Buying Established $900K | Building New (land $400K + build $500K) | |
|---|---|---|
| Stamp duty on | $900,000 | $400,000 |
| Stamp duty payable | $49,070 | $18,370 |
| You save | — | $30,700 |
“A $30,700 stamp duty saving on a $900K build is real money — that’s enough to upgrade your kitchen finishes or add solar panels and a battery system. Most upgraders don’t realise the two-contract approach works for them too, not just first home buyers.” — James Thornton, Construction Cost Analyst at BuildBudget
See your stamp duty savings
Our calculator shows the full picture — build cost, stamp duty on land only, and FHOG if eligible.
How It Works
Not complicated, but you need to get the paperwork right.
- Buy the land first — you pay stamp duty on the land value only
- Sign a building contract separately — the building contract is NOT subject to stamp duty
- Important: The land and build must be separate contracts. If you buy a “house and land package” as a single contract, stamp duty may apply to the full amount
The Two-Contract Rule
This is the part where people trip up. For the saving to work:
- You need one contract for the land purchase
- You need a separate building contract with your builder
- The land settlement has to happen before construction starts
- If a developer is selling you the land and building the home as a bundled deal, the SRO can treat it as a single purchase — and you’ll pay duty on the lot
How Much Stamp Duty Will You Pay in Victoria?
| Land Value | Stamp Duty (Standard) | Stamp Duty (First Home Buyer) |
|---|---|---|
| $200,000 | $7,070 | $0 |
| $250,000 | $8,750 | $0 |
| $300,000 | $10,070 | $0 |
| $350,000 | $13,070 | $0 |
| $400,000 | $16,070 | $0 |
| $450,000 | $18,970 | $0 |
| $500,000 | $21,970 | $0 |
| $550,000 | $25,070 | $0 |
| $600,000 | $31,070 | $0 (max exemption) |
| $650,000 | $34,070 | ~$10,350 |
| $700,000 | $37,070 | ~$20,700 |
| $750,000 | $40,070 | ~$31,050 |
(State Revenue Office Victoria)
“If your land purchase sits under the $600,000 threshold, you’re looking at zero stamp duty plus the $10,000 FHOG — that’s over $40,000 in government support before you’ve laid a single brick. Very few first home buyers I speak to realise both concessions stack.” — Emma Whitfield, Property Finance Analyst at BuildBudget
What Are the Off-the-Plan Concessions?
Buying an apartment or townhouse off-the-plan? Victoria lets you claim a concession on the “land” portion of the purchase. The SRO reduces the dutiable value by whatever construction hasn’t happened yet at the date you sign.
That means buying earlier saves you more. If you sign before a single slab is poured, the construction component is larger and your duty bill is smaller. Your conveyancer works out the split — you don’t need to calculate it yourself. The concession applies whether you’re a first home buyer or not.
When Is Stamp Duty Due in Victoria?
Within 30 days of settlement — that’s the day you get the title to the land. In practice, your conveyancer handles it as part of the settlement process, so you won’t need to remember the deadline yourself.
Do Foreign Buyers Pay More Stamp Duty in Victoria?
Yes. Foreign purchasers cop an extra 8% surcharge on top of standard rates (State Revenue Office Victoria). It applies to land and established property alike — there’s no way to avoid it by choosing one over the other.
Frequently Asked Questions
Do I pay stamp duty on the construction cost?
No. As long as you have separate contracts for the land purchase and the build, the building contract isn’t dutiable. That’s the whole reason building saves you so much upfront.
Can I get both the stamp duty exemption and the FHOG?
Yes, and this is where first home buyers really come out ahead. You can stack both:
- Stamp duty exemption (land value up to $600,000)
- First Home Owner Grant ($10,000)
They’re separate schemes with separate eligibility. Claiming one doesn’t affect the other. You may also qualify for the $10,000 First Home Owner Grant in Victoria.
What about the off-the-plan concession for houses?
It’s really designed for apartments and townhouses bought before completion. If you’re building a standalone house, you don’t need it — the two-contract approach (separate land purchase + separate build contract) gets you the same outcome, often a better one. See our Melbourne building costs guide for what you’ll spend on the build itself.
If you’re weighing up building versus buying established, compare the total cost in our build vs buy analysis. And for financing options, learn about construction loans vs home loans to understand how progress drawdowns work during a build. Estimate your total build cost with our free calculator.
Rates current as of April 2026, based on State Revenue Office Victoria guidelines. Your situation will have details we can’t cover here — talk to a conveyancer or solicitor before making decisions based on these numbers.
Key Takeaways
- Victoria first home buyers pay zero stamp duty on properties up to $600,000 (full exemption)
- Building saves $20,000-$40,000 in stamp duty compared to buying established — you only pay duty on land, not construction cost
- Partial concessions apply for first home buyers purchasing $600,001-$750,000 (sliding scale)
- Non-first home buyers save $30,700 building $900K home vs buying established
- Off-the-plan concessions reduce duty on apartments/townhouses (construction component excluded)
- Foreign buyers pay additional 8% surcharge on top of standard rates
- Stamp duty due within 30 days of settlement
- First home buyers can stack $10K FHOG with stamp duty exemption on new builds
Data Sources
All information sourced from official government agencies:
- State Revenue Office Victoria — Land Transfer Duty, accessed April 2026
Related Guides
- First Home Owner Grant Victoria — $10,000 grant details
- Cost to Build a House in Melbourne — Full cost breakdown
- Stamp Duty NSW — If you’re comparing Sydney
- Build vs Buy — Which Is Smarter? — Full comparison
