Upfront and ongoing costs that apply to property in Victoria.
Upfront costs
Land transfer (stamp) duty
When you buy property, you will typically pay land transfer duty (also known as stamp duty).
The amount depends on:
- the property’s value
- your residency status
- whether you’re eligible for any exemptions or concessions.
Other one-off taxes
These upfront costs apply in specific circumstances and mainly affect property developers:
- Windfall gains tax is paid when land value increases more than $100,000 due to government rezoning.
- Growth areas infrastructure contribution is a one-off charge on land in Melbourne’s growth areas when it is bought, subdivided or developed.
Ongoing annual costs
Once you own a property, there are state taxes which may apply depending on the property’s use, location and your residency status.
Land tax
If you own property in Victoria, you may have to pay land tax each year.
Land tax is an annual tax based on the total taxable value of all land you own in Victoria. This excludes exempt land like your home.
Land tax applies if the total value of the land you own exceeds:
- $50,000 for individuals
- $25,000 for trusts.
Your home (principal place of residence) is exempt, and so is land used for primary production or for charitable purposes.
Land tax applies to investment properties, commercial sites, rentals and holiday homes, even if vacant. It also applies to apartments and houses.
An absentee owner surcharge applies to Victorian land owned by an absentee owner.
Emergency services and volunteers fund
The emergency services and volunteers fund supports Victoria’s emergency and disaster response services.
It is charged annually and appears on your council rates notice. The amount depends on the property type and its capital improved value.
Vacant residential land tax
Vacant residential land tax applies to residential land that is vacant for more than 6 months in a calendar year. It aims to increase the supply of housing in Victoria.
Congestion levy
If you own off-street parking spaces in designated areas of inner Melbourne, you may be liable for the congestion levy. This is an annual charge aimed at reducing traffic congestion.
Short stay levy
You may have to pay the short stay levy if you:
- accept bookings for a stay in Victorian accommodation that is less than 28 consecutive days
- charge a fee for the stay.
Commercial and industrial property tax
If you own commercial and industrial property, there has been a move from land transfer duty and landholder duty to an annual property tax known as the commercial and industrial property tax.
The tax will not become payable until 2035 at the earliest.
