Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs buyers forget to budget for — and the rules changed significantly from 1 April 2025, when temporary lower thresholds expired. Here’s exactly what you’ll pay in 2026, based on your buyer status and property price.
Note: SDLT applies in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — both covered briefly below.
Current SDLT Rates (England & Northern Ireland, from 1 April 2025)
Standard residential buyers (already own or moving home)
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Above £1.5 million | 12% |
First-time buyers
| Portion of price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Above £500,000 | No relief — standard rates apply to the full amount |
To qualify, every buyer on the application must be a genuine first-time buyer who has never owned residential property anywhere in the world.
Additional properties (second homes, buy-to-let)
Add a 5 percentage point surcharge to every standard band above (applies where the price is £40,000 or more): 5%, 7%, 10%, 15%, and 17% respectively.
Worked Examples
| Property Price | Standard Buyer | First-Time Buyer | Additional Property |
|---|---|---|---|
| £250,000 | £2,500 | £0 | £15,000 |
| £350,000 | £7,500 | £2,500 | £24,500 |
| £500,000 | £15,000 | £10,000 | £40,000 |
| £750,000 | £27,500 | £27,500 | £65,000 |
SDLT is charged on a “slice” basis — each rate applies only to the portion of the price that falls within that band, not the whole purchase price at one rate. That’s why the tax owed rises in steps rather than jumping all at once.
Scotland (LBTT) and Wales (LTT) — Quick Comparison
| Nation | Tax | Nil-rate threshold |
|---|---|---|
| England / Northern Ireland | SDLT | £125,000 standard / £300,000 first-time buyer |
| Scotland | LBTT | £145,000 |
| Wales | LTT | £225,000 |
Each nation sets its own bands and rates, so a like-for-like property will attract a different tax bill depending on where it is — always check the calculator specific to that nation.
What Else Affects Your Stamp Duty Bill?
Non-resident buyers face an additional 2% surcharge on top of all applicable standard, first-time buyer, or additional-property rates.
New leasehold purchases can attract SDLT on both the purchase premium and the net present value of the rent over the lease term, where that value exceeds £125,000.
Multiple Dwellings Relief (previously used by buyers of two or more properties in one transaction) was abolished from 1 June 2024, so this is no longer available for new purchases.
Replacing your main residence: if you buy a new main home before selling your old one, you may pay the additional-property surcharge upfront but can reclaim it if the previous home is sold within the allowed period — check current HMRC guidance for the exact timeframe.
Frequently Asked Questions
When do I have to pay stamp duty?
SDLT must be paid and reported to HMRC within 14 days of completion. In practice, your conveyancer handles this as part of the completion process, deducting it from the funds provided.
Do first-time buyers ever pay no stamp duty?
Yes — on properties up to £300,000, eligible first-time buyers pay 0% SDLT. Between £300,001 and £500,000, a 5% rate applies to the portion above £300,000. Above £500,000, no first-time buyer relief applies at all.
Is stamp duty different for new builds?
No — SDLT is calculated the same way for new-build and existing homes, based on the purchase price and buyer status.
Can I add stamp duty to my mortgage?
Some lenders allow this, effectively increasing your loan amount, but it means paying interest on the SDLT over the life of the mortgage. It’s usually more cost-effective to pay it upfront if you can.
How is stamp duty different from other buying costs?
SDLT is separate from your deposit, mortgage arrangement fees, legal fees, and survey costs. Factor it in alongside your Mortgage Calculator estimate to get your full upfront cash requirement.
Next Steps
Run your own figures using the bands above, then use our Mortgage Calculator to see your monthly repayment and get in touch to confirm your loan size before budgeting for SDLT.
This article is for general information only and does not constitute personalised tax or financial advice. Stamp Duty rates, thresholds, and reliefs are set by HMRC (and the equivalent Scottish and Welsh authorities) and can change — always confirm the current position with HMRC or a qualified adviser before completing a purchase.