Queensland were chasing an improbable 576 runs for victory on a wearing pitch but were dismissed for 254 in their second innings.
Victorian paceman Michael Lewis delivered the state its first first-class title since 1990-91 and 26th overall with career-best figures of 6-59.
The win completed a remarkable season for Victoria, who remained undefeated all season in the four-day game and topped the standings 16 points clear, but were devastated by the death of coach David Hookes, who died in January after an incident outside a Melbourne hotel.
Queensland resumed at 56 for two and any hope they had of batting out the last day to deny the Victorians an outright win were dashed when they lost four wickets before lunch.
Stuart Law top scored with 72 in his last innings in Australian domestic cricket and left the field to a standing ovation from teammates and the crowd. Victoria needed only a draw to win the shield but dominated from day one.
Sent into bat, Victoria piled on 710 in the first innings, rolled Queensland for 275, opted not to enforce the follow-on and instead scored 140 for one declared to set the Queenslanders the huge second-innings target.
Matthew Elliott, who hit 155 in the first innings, broke fellow Victorian Graham Yallop's records for the most Shield runs in a season and the most first-class runs in a season for Victoria. He finished with 1,429 runs at an average of almost 80.
Victoria sets Q'land a daunting task