Updated for the May 2026 reform
Capital Gains Tax Calculator VIC
CGT is federal - Victorian sellers face the same enacted 2026 rules as the rest of the country, with the gain split at 1 July 2027 between the discounted earlier slice and CPI-indexed later gains. The Victorian part of the sum is the country's heaviest duty in your cost base: $46,070 on an $850,000 purchase, which is real consolation at sale because every dollar of it comes off the taxable gain.
- Rates verified
- 2026-08-03
- Reform
- Split at 1 Jul 2027
- Classes
- All three
The sale
= sold in FY ending 2036
CGT payable - Established (post-reform)
CPI indexation*$40,458
- Capital gain (proceeds − adjusted cost base)
- $320,080
- Taxable gain after discount/indexation/exemption
- $100,229
- Net proceeds after CGT
- $1,178,292
The same sale under each regime
Grandfathered
$40,458
CPI indexation
Established (post-reform)
$40,458
CPI indexation
New build
$68,569
50% discount
If CPI runs low or high - the 2-3% band
CPI 2%/yr
$62,784
+$22,326 vs assumed
CPI 2.5%/yr - assumed
$40,458
the headline figure
CPI 3%/yr
$18,776
−$21,681 vs assumed
The enacted law indexes the reset cost base by actual CPI, which no one can know in advance. Higher inflation indexes the cost base harder and lowers the taxed gain; lower inflation does the opposite. The band shown is the RBA inflation target the 2.5%/yr assumption is the midpoint of (source).
The VIC costs inside this estimate
- Investor transfer duty at $850,000
- $46,070
- Conveyancing (default)
- $2,000
- Building and pest (default)
- $600
- Selling costs (default 2.5% of sale)
- $31,250
Victorian land transfer duty is the heaviest of any state at typical price points - and none of it is deductible while you hold, so all of it joins the cost base and reduces the gain at sale. Auto-estimated from the SRO general scale at the purchase price; override with your contract figures.
CGT is the last chapter of a deal. The full audit runs it against everything that came before - acquisition costs, cash flow and the quarantined loss pool it absorbs.
Deal Auditor - in build, not yet available
*The enacted law indexes cost bases by actual CPI; future CPI is unknowable, so this calculator assumes a 2.5%/yr CPI proxy (the middle of the RBA target band). The 1 Jul 2027 split defaults to a constant-growth interpolation unless you enter a valuation. Confirm the mechanics with your accountant (source). General information only.
CGT in Victoria: federal tax, VIC numbers
Victoria taxes property hardest on the way in and along the way - the heaviest transfer duty at typical price points, including the flat 5.5% band from $960,000, and a land tax threshold of just $50,000 that catches nearly every investor. But capital gains tax at the end is purely federal: the same enacted 2026 rules as every other state. The Victorian numbers still matter to the federal sum, in opposite directions - all that duty joins your cost base and shrinks the gain, while the land tax you paid every year was deductible against rent and never touches this calculation. This page starts with the SRO investor duty at your purchase price inside the cost base, overridable with contract figures.
From there the reform runs identically to the national calculator - the same audited engine. The 1 July 2027 deemed sale splits the gain: the earlier slice keeps 50% discount treatment, later gains are taxed on a CPI-indexed cost base with the 30% minimum tax, and only first-owner new builds keep the discount beyond the split. For established purchases contracted after 12 May 2026, Victoria's heavy holding costs have one late payoff: rental losses they deepened were quarantined into a pool, and that pool is applied against the gain here, before the discount step, exactly as the method statement orders it.
The VIC stamp duty calculator prices the duty this page adds to your cost base on the way in. While you hold, VIC land tax starts at just $50,000 of taxable land value - the lowest threshold in the country, with COVID Debt Repayment Plan charges baked into the scale until 2033. It is deductible against rent each year, never part of the cost base. And if the property was ever your home first, the VIC first home buyer calculator shows the exemption to $600,000 and concession to $750,000 that may have applied - years lived in first drive the main residence exemption and the 6-year absence rule here. The national CGT calculator is this same engine without the VIC defaults, and the negative gearing calculator projects the quarantined loss pool this page applies at sale.
Frequently asked questions
How is capital gains tax calculated on an investment property in Victoria?
Under federal rules - CGT is the same in every state. Proceeds after selling costs, minus the cost base: purchase price plus buying costs including Victorian land transfer duty ($46,070 on an $850,000 purchase) and legals, less Division 43 capital works claimed. The enacted 2026 reform then splits the gain at 1 July 2027: the earlier slice keeps the 50% discount, later gains use CPI indexation plus a 30% minimum tax, and the taxable amount is taxed at your marginal rate on top of your income.
Does Victoria's high stamp duty reduce capital gains tax?
Yes - at sale, every dollar of duty is a dollar off the gain. Victoria charges the heaviest duty on the east coast, including a flat 5.5% band from $960,000, and because duty on an investment purchase is not deductible during the hold it all sits in the cost base. On an $850,000 purchase that is $46,070 off the taxable gain - cold comfort on the way in, real money on the way out.
Does Victorian land tax affect my capital gain?
No. Victorian land tax - which starts at just $50,000 of taxable land value, the lowest threshold in Australia, with COVID debt levy charges in the scale until 2033 - is a deductible holding cost claimed against rent each year. It never joins the cost base. For post-reform established purchases, land tax that pushes the rental result into loss feeds the quarantined pool, and this calculator applies that pool against the gain at sale.
What about vacant residential land tax in Victoria?
It is separate from both land tax and CGT - 1%, 2% or 3% of capital improved value for homes left vacant in consecutive years - and like ordinary land tax it is a holding cost, not a cost base item. It has no direct effect on the CGT calculation, but a property that sat vacant may also have deduction and main-residence questions worth taking to your accountant before you rely on any CGT estimate.
What did the May 2026 reform change for Victorian sellers?
The 50% discount ends for gains accruing from 1 July 2027 - replaced by CPI indexation of the cost base plus a 30% minimum tax, for every owner including grandfathered ones. The law banks the gain accrued to 1 July 2027 under the old discount treatment via a deemed sale and re-acquisition. First-owner new builds keep the 50% discount for later gains, with a per-sale election to use indexation instead. This calculator models the split with a labelled 2.5% a year CPI proxy.