Stamp Duty on Residential Property: Rates and Calculator 2026/27

Stamp Duty Land Tax (SDLT) on a main residence in England and Northern Ireland is 0% on the first £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above that. First-time buyers pay nothing up to £300,000, and buying an additional home adds a 5% surcharge.

This guide sets out the rates, relief and surcharges with worked examples, and shows how they affect buyers and landlords in London, where prices often push buyers into the higher bands. You can check your own bill with our stamp duty calculator.

Standard residential SDLT rates

SDLT is charged in slices, like income tax. You only pay each rate on the part of the price that falls into that band.

First-time buyer relief

First-time buyers pay no SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000. The relief is only available if the purchase price is £500,000 or less. If the price is even £1 above £500,000 the relief is lost and standard rates apply. In London, where many starter homes cost more than £500,000, that cliff edge catches a lot of first-time buyers.

The 5% surcharge on additional homes

If you buy an additional residential property, such as a buy-to-let or second home, a 5% surcharge applies to the whole price on top of the standard rates. The surcharge applies if you will own more than one dwelling at the end of the day of completion and are not replacing your main residence. Non-UK residents pay a further 2% surcharge.

Worked examples

For the £450,000 home, you pay nothing on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the final £200,000 (£10,000), which makes £12,500 in total.

When and how to pay

You must file an SDLT return and pay within 14 days of completion. Your solicitor or conveyancer normally handles this and collects the money from you with the other completion costs. Late filing and late payment attract penalties and interest, so make sure your solicitor confirms the submission.

Scotland and Wales

SDLT applies to England and Northern Ireland only. Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT), each with different rates and reliefs.

Stamp duty for landlords and investors

Landlords should budget for the 5% surcharge on every additional property. SDLT is not deductible against rental income, but it is a cost you can add to the purchase price when you later calculate capital gains tax. If you buy through a limited company, the surcharge still applies. Our landlord tax guide explains income tax and capital gains tax on rental property, and our landlord tax calculator compares owning personally with using a company.

Stamp duty in London

London prices push many buyers into the 5% band and beyond. A typical home in Hackney, Wandsworth or Barnet is likely to cost well over £400,000, so SDLT is often a five-figure bill. Buyers in the outer boroughs, such as Bexley, Havering and Croydon, may sit closer to the first-time buyer threshold, so watching the £500,000 cut-off is important. We help London landlords and property investors plan purchases and tax. See our landlord accountants by borough.

Ways to plan your SDLT

• First-time buyers close to £500,000 should check whether a lower price avoids the cliff edge.
• Replacing your main residence does not usually trigger the surcharge if you sell the old home within three years, and you can reclaim the surcharge if the sale comes later.
• Include SDLT in your budget when comparing mortgage offers.
• Keep the SDLT return and completion statement for capital gains tax calculations.

Stamp duty step by step: from offer to completion

1. Offer accepted. Work out SDLT from the agreed price and add it to your budget.
2. Instruct a solicitor. They check whether any relief or surcharge applies.
3. Exchange contracts. The price and completion date become fixed.
4. Completion. Funds move, and the solicitor collects the SDLT from you.
5. Filing. The SDLT return and payment must reach HMRC within 14 days of completion.

Why the price thresholds matter

Because SDLT is charged in bands, small price differences around a threshold can change the bill noticeably. Buying at £250,000 costs £2,500 in SDLT. Buying at £260,000 costs £3,000, because the extra £10,000 is taxed at 5%. For first-time buyers the effect is sharper: at £500,000 the bill is £10,000 but at £500,001 the relief disappears and the bill jumps to £15,000. If you are negotiating close to a threshold, a small reduction in price can save far more than it costs the seller.

Recent changes to the rates

For a period to 31 March 2025 the zero-rate band was £250,000 and first-time buyers paid nothing up to £425,000. Those temporary thresholds ended on 1 April 2025, and the rates in this article are the ones now in force. The surcharge for additional properties was also raised from 3% to 5% in October 2024. If you read older articles quoting lower SDLT, check the date.

Stamp duty and capital gains tax

SDLT paid when you buy can be added to the purchase cost of a property when you later calculate capital gains tax on a sale, which reduces the gain. Keep your completion statement, SDLT return and receipts for improvement costs together so your accountant can reduce the gain properly. Read our capital gains tax calculator and landlord tax guide for how gains are taxed.

Mistakes buyers make with stamp duty

• Assuming first-time buyer relief applies above £500,000.
• Forgetting the 5% surcharge on an additional property while the old home is still unsold.
• Not budgeting for SDLT in the total cost of the purchase.
• Missing the 14-day deadline when buying without a solicitor’s help.

Buying with someone else

First-time buyer relief only applies if every buyer is a first-time buyer. If you buy a home with a partner or friend who has owned a property before, the relief is not available and standard rates apply to the whole purchase. This catches many couples who assume one first-time buyer is enough. If one buyer already owns a home, also check whether the 5% surcharge could apply.

Non-UK residents

Buyers who are not UK resident for SDLT purposes pay an extra 2% on top of the standard rates, and the 5% surcharge can apply as well. Residence for SDLT is tested separately from tax residence, based on days spent in the UK in the 12 months before the purchase, so check your position before exchange if you have recently moved to or from the UK.

Using an accountant with property purchases

A solicitor handles the SDLT return, but an accountant helps you decide how to own the property, how to fund it and how the purchase interacts with your income tax and capital gains position. If you are buying a buy-to-let in London, ask for advice before you exchange contracts. Changing the ownership structure after you complete is expensive.

Frequently asked questions

How much stamp duty will I pay on a £500,000 home?

A standard buyer pays £15,000. A first-time buyer pays £10,000 because relief covers the first £300,000 and the rest is taxed at 5%.

Is stamp duty paid by the buyer or seller?

The buyer pays SDLT.

Do I pay the surcharge if I am replacing my main residence?

Not normally, if the old home is sold within three years of buying the new one. You can reclaim the surcharge if you sell later.

Does stamp duty apply to Scotland and Wales?

No. Scotland uses LBTT and Wales uses LTT.

How long do I have to pay stamp duty?

Within 14 days of completion. Your solicitor usually files the return and pays it for you.