Stamp duty, officially known as transfer duty, is a Victorian state government tax paid on the purchase of property. As of December 2025, the amount is calculated on a sliding scale based on the property’s value, and is paid by the buyer, not the seller.
In 2026, the rates currently in Melbourne are structured as follows: up to $25,000 is tax-free. From $25,001 to $130,000, the rate is 1%. Between $130,001 and $960,000, it’s 2%. Properties valued between $960,001 and $2,000,000 attract a rate of 2.5%, and anything above $2,000,000 is taxed at 3%. A significant change is scheduled for 2027 with the introduction of a progressive property tax, but this doesn’t affect transactions in 2026. For properties in Melbourne’s Eastern Suburbs, where the median dwelling value is around $823,495 as of December 2025, buyers can expect to pay approximately $16,469 in stamp duty. First home buyers may be eligible for exemptions or concessions, and it’s important for prospective purchasers to verify their eligibility. Understanding these costs is crucial for buyers when assessing their borrowing capacity and overall property affordability.
Stamp duty is a substantial cost for buyers in Victoria in 2026, and its calculation is directly linked to the property’s value.