Capital Gains Tax Calculator VIC

Capital gains tax (CGT) on Victorian property follows the same federal rules that apply across Australia — there is no separate Victorian CGT. When an investment property in Victoria is sold, the capital gain is added to the seller’s taxable income and taxed at the marginal rate (ATO — Capital gains tax overview). Victorian purchase costs such as land transfer duty can form part of the CGT cost base and reduce the taxable capital gain. The calculator above estimates CGT for Victorian property sales.

How Does Capital Gains Tax Apply in Victoria?

CGT in Australia is a federal tax administered by the Australian Taxation Office (ATO). Victoria does not levy a separate capital gains tax on property sales. Whether you sell a property in Melbourne, Geelong, Ballarat, or regional Victoria, the core CGT calculation is the same: the capital gain is included in your assessable income for the financial year of sale (ATO — Capital gains tax overview).

The state-specific part is not the CGT rate. It is the cost base. Victorian land transfer duty, conveyancing costs, and any other eligible acquisition or disposal costs can change the capital gain before the federal tax calculation applies. That is why a VIC-specific page is useful even though CGT itself is federal.

If you are an Australian resident individual and held the property for more than 12 months, you may be eligible for the 50% CGT discount, which halves the taxable capital gain before it is added to your income (ATO — CGT discount).

Victorian Land Transfer Duty and Your CGT Cost Base

When you buy an investment property in Victoria, you may pay land transfer duty to the State Revenue Office Victoria. It is commonly called stamp duty, but Victoria’s official term is land transfer duty (SRO Victoria - Land transfer duty - non-principal place of residence (current rates)). Duty paid at acquisition can be included in the CGT cost base as an incidental cost of acquiring the property.

For many Victorian investment purchases, land transfer duty is a large cost-base item. Adding it to the cost base reduces the capital gain when you later sell. If you paid no duty because of a concession or exemption, there is no duty amount to include for that element.

Foreign purchaser additional duty

Foreign purchasers of Victorian residential property may also pay additional duty at acquisition. If you paid that duty when buying the property, it may form part of the cost base alongside standard land transfer duty. The calculator has a stamp duty input where you can enter the total duty actually paid.

Division 43 deductions and the cost base

Capital works deductions can reduce the relevant capital costs included in the cost base. If you claimed Division 43 deductions while renting out the Victorian property, enter the total claimed amount in the calculator so the cost base adjustment is reflected in the estimate.

Melbourne Property Growth and Sale-Year Tax

Melbourne and inner-suburban Victorian properties can produce a large dollar gain even when annual growth looks modest. CGT is assessed in the sale year, so the same capital gain can produce different tax outcomes depending on your other income for that year.

Selling while your salary, bonus, or business income is high can push more of the taxable gain into a higher bracket. Selling in a lower-income year can reduce the estimated tax on the gain. The calculator lets you adjust your other income to test those sale-year scenarios.

VIC-Specific Worked Example

Assume the following scenario for a Melbourne investment property:

• Purchase price: $800,000
• Victorian land transfer duty paid: $43,000
• Legal fees (purchase): $2,500
• Capital improvements: $20,000
• Div 43 deductions claimed: $8,000
• Sale price: $1,050,000
• Agent commission: $21,000
• Legal fees (sale): $2,000
• Holding period: 6 years (eligible for 50% discount)
• Other income in the sale year: $90,000

Step 1: Calculate the cost base

Step 2: Calculate the capital gain

Capital gain = Sale price - Cost base

$1,050,000 - $880,500 = $169,500

Step 3: Apply the 50% CGT discount

Because the property was held for 6 years (more than 12 months):

Taxable capital gain = $169,500 x 50% = $84,750

Step 4: Calculate estimated CGT

The $84,750 taxable gain is added to $90,000 other income, giving total taxable income of $174,750. Based on the calculator’s 2025-26 resident tax settings, the estimated additional tax on the gain is approximately $29,900.

Without the 50% discount, the full $169,500 would be taxable and the estimated CGT would be approximately $68,500 — the discount saves roughly $38,600 in this scenario.

Including the $43,000 Victorian land transfer duty in the cost base reduces the capital gain from $212,500 to $169,500. After the discount and income-tax calculation, that reduces the estimated CGT by approximately $8,900 in this scenario.

Related VIC Property Calculators

• Land Tax Calculator — estimate Victorian land tax or compare Victoria with other Australian states.
• Negative Gearing Calculator — estimate the tax effect and after-tax cash flow of a Victorian investment property.
• Rental Yield Calculator — compare gross and net rental yield before modelling a sale.
• Investment Property Calculator — combine cash flow, land tax, yield, and CGT into one property scenario.