Stamp Duty Explained UK (2026): Rates, Exemptions & Calculator
Stamp duty can add thousands to the cost of buying. Here is what you will actually pay, when relief applies, and how to keep the bill down.
Stamp Duty Land Tax, usually shortened to SDLT, is the tax you pay to HM Revenue & Customs when you buy a home or a piece of land above a certain price in England and Northern Ireland. Scotland and Wales run their own versions instead: the Land and Buildings Transaction Tax (LBTT) in Scotland and the Land Transaction Tax (LTT) in Wales, which work in much the same way. After the deposit itself, stamp duty is often the biggest single cost you face when buying, so it pays to know how the bill is worked out, when relief applies, and what can bring it down before you fix your budget.
SDLT is tiered, a bit like income tax. Rather than one flat rate on the whole purchase price, each slice of the price that falls inside a band is taxed at the rate set for that band. So the effective rate you actually pay ends up below the headline rate of the top band your purchase reaches. One thing to watch: in April 2025 the thresholds went back to their pre-September 2022 levels once the temporary increases from the previous government came to an end. Work from the current figures, not the older ones that still linger in plenty of online guides.
Below you will find the standard residential SDLT bands for 2025, how first-time buyer relief works and who qualifies, and the 5% additional property surcharge that applies to second homes and buy-to-let purchases. Worked examples at common price points show what you would owe at each level, and our free stamp duty calculator lets you drop in your own numbers in a few seconds.
Current SDLT bands for 2025
These are the standard residential SDLT thresholds in England and Northern Ireland that have applied since 1 April 2025. The nil-rate band, the slice you pay nothing on, covers the first £125,000 of any purchase. The portion from £125,001 to £250,000 is charged at 2%. From £250,001 to £925,000 the rate is 5%. It rises to 10% between £925,001 and £1,500,000, and the part of the price above £1,500,000 is taxed at 12%.
Because the bands are tiered, a £300,000 home does not cost you 5% on the whole £300,000. You pay nothing on the first £125,000, 2% on the next £125,000, and 5% on the last £50,000. That comes to £5,000.
These are the standard residential SDLT thresholds for England and Northern Ireland, in force since 1 April 2025. The bands are tiered, so each rate only applies to the portion of the price sitting inside that band, never to the whole purchase price. Our stamp duty calculator gives you an instant breakdown for any purchase price.
Standard SDLT rates (2025)
Anything above £1,500,000
The portion of the purchase price above £1,500,000 is taxed at 12%. This only applies to the slice above that threshold, not the entire price.
First-time buyer relief
First-time buyers pay less because they get a higher nil-rate band, as long as the property costs £625,000 or less. You pay no stamp duty on the first £300,000, then 5% on the portion from £300,001 to £625,000. Go a single pound over £625,000, though, and the relief disappears completely, leaving you on the standard rates.
To count as a first-time buyer, none of the people buying can have owned a home before, anywhere in the world. That includes a property you inherited and lived in. If you are buying together, both of you need to be first-time buyers for the relief to apply.
A first-time buyer buying at £625,000 or less gets a higher nil-rate band. You pay no stamp duty on the first £300,000, then 5% on the portion from £300,001 to £625,000. Go over £625,000 and the relief is lost completely, so you pay the standard rates.
To qualify, none of the buyers can have owned a home before, anywhere in the world, and that includes a property you inherited and lived in. Buying jointly? You both need to be first-time buyers. Our guide to first-time buyer mortgages covers eligibility and the schemes you can use in more detail.
SDLT on a £425,000 property
| First-time buyer | Standard buyer |
|---|---|
| £0 on first £300,000 | £0 on first £125,000 |
| 5% on £125,000 = £6,250 | 2% on £125,000 = £2,500 |
| Total SDLT: £6,250 | 5% on £175,000 = £8,750 |
| Saving of £6,250 vs standard rates | Total SDLT: £11,250 |
Additional property surcharge
Already own a home and buying another one? Whether the second place is a buy-to-let investment, a holiday home or just a spare property, you pay a 5% surcharge on top of the standard SDLT rates. That surcharge is charged on the whole purchase price, right from the first pound.
You can also get caught by the surcharge when you are replacing your main home but have not sold the old one by completion day. If that happens, you can reclaim the surcharge as long as you sell the previous property within 36 months.
Already own a home and buying another? Whether the extra property is a buy-to-let investment, a holiday home or a second home, you pay a 5% surcharge on top of the standard SDLT rates. It applies to the entire purchase price, from the very first pound.
The surcharge can also apply when you are replacing your main residence but have not yet sold your old home by the point of completion. In that case you can claim the money back, provided you sell the previous property within 36 months. Our moving home guide explains how to line up your sale and purchase.
The surcharge adds up quickly
On a £300,000 buy-to-let purchase the standard SDLT would be £5,000. Add the 5% additional property surcharge and the bill jumps to £20,000, which is £15,000 more. Build that into your investment sums from the start.
Surcharge impact at common price points
Worked examples at common price points
Real numbers make SDLT easier to picture. Here are three worked calculations at common UK purchase prices, all using the standard 2025 bands. Keep in mind that first-time buyers paying £625,000 or less will owe less than the figures shown here.
For a £250,000 property: £0 on the first £125,000, then 2% on £125,000 = £2,500. Total: £2,500. For a £450,000 property: £0 + £2,500 + 5% on £200,000 = £12,500. Total: £12,500. For a £1,000,000 property: £0 + £2,500 + £33,750 + 10% on £75,000 = £43,750. Total: £43,750.
Real numbers make SDLT easier to picture. Here are calculations at three common UK purchase prices using the standard 2025 bands. Bear in mind that first-time buyers paying £625,000 or less owe less than these figures, thanks to their higher nil-rate band.
SDLT calculation for a £450,000 property
- 01
Band 1: £0 to £125,000
£125,000 at 0% = £0
- 02
Band 2: £125,001 to £250,000
£125,000 at 2% = £2,500
- 03
Band 3: £250,001 to £450,000
£200,000 at 5% = £10,000
- 04
Total SDLT
£0 + £2,500 + £10,000 = £12,500. Effective rate: 2.78%
The effective SDLT rate is always lower than the headline rate for your highest band. On a £450,000 purchase you pay just 2.78%, not 5%.
Ways to reduce your stamp duty bill
You cannot dodge stamp duty entirely once a property sits above the nil-rate threshold, but a few legitimate approaches can trim what you owe. Some are simple. Others need proper planning and professional advice.
First-time buyer relief is the saving most people use. On top of that, some property types follow different rules, such as shared ownership purchases or homes bought through a company, and in certain cases part of the price can be assigned to moveable contents like fixtures and fittings, which do not attract SDLT.
You cannot avoid stamp duty completely once a property is above the nil-rate threshold, but there are legitimate ways to reduce the amount. Set SDLT against your wider budget alongside your deposit and how much you can borrow so nothing catches you out later.
Claim first-time buyer relief
- No SDLT on the first £300,000 (up to £625,000 purchase price). This alone can save you up to £6,250.
Negotiate the price just below a threshold
- Even a small price reduction that keeps you in a lower band can save hundreds. Use our calculator to test different figures.
Separate fixtures and fittings
- If the seller is including items like carpets, curtains, or fitted appliances, these can be valued separately and excluded from the SDLT calculation. The valuation must be genuine and reasonable.
Transfer property between spouses
- Transfers between married couples or civil partners are generally exempt from SDLT, which can be useful when restructuring property ownership.
Claim the surcharge refund
- If you paid the additional property surcharge because you had not yet sold your previous home, you can reclaim it within 36 months of the new purchase.
Calculate your stamp duty now
The fastest way to see exactly what you will owe is our free stamp duty calculator. It handles standard purchases, first-time buyer relief and the additional property surcharge. Our repayment calculator then shows how that stamp duty bill feeds into your total borrowing costs once it sits alongside the mortgage.
Not sure whether you qualify for relief, or want to talk through how stamp duty sits within your overall buying budget? Have a word with one of our mortgage advisers. We can help you map the full cost of a purchase, covering the deposit and SDLT as well as legal fees and the cost of moving.
The fastest way to find your exact bill is our free stamp duty calculator. It handles standard purchases, first-time buyer relief and the additional property surcharge. Our repayment calculator then shows how SDLT feeds into your total borrowing costs.
Useful tools
Budget for all upfront costs
Stamp duty is only one slice of what buying costs you. There are also solicitor fees (£1,000 to £2,000), a survey (£300 to £1,500) and mortgage arrangement fees to plan for. A broker can help you see the whole picture.
Related guides
- First-Time Buyer Guide
What first-time buyers need to know, including the stamp duty relief that can save you thousands.
- Buy-to-Let Guide
Understand the 5% additional property surcharge and other costs of investing in rental property.
- How Much Can I Borrow?
Factor stamp duty into your total budget by knowing exactly how much mortgage lenders will offer.
- A Guide to Moving Home Mortgages
Coordinate your sale and purchase to avoid unnecessary stamp duty surcharges.
Frequently asked questions
- Regulator
- FCA register
- Updated
- 24 February 2026
More guides
Browse all- Guide7 min read
Mortgage Overpayments: How They Save You Thousands
How overpaying your mortgage, even by a small amount each month, cuts your interest bill and shortens your term.
by Allan18 Feb 2026
- Guide8 min read
Right to Buy Mortgage Guide UK: Council Tenant to Homeowner
The Right to Buy scheme lets council tenants in England buy their home for well below its market value. Here is who qualifies, how big the discount can be, what it means for your mortgage, and how the application runs from the first form to completion.
by Saha5 Feb 2026
- Guide9 min read
Mortgage Affordability: What Lenders Really Look At
When a UK lender works out your affordability, your salary is only one input. Once you understand income multiples, the stress test, your outgoings and your credit history, you can plan for a bigger loan.
by Komal20 Jan 2026
Get a personalised stamp duty estimate
Our mortgage advisers can help you budget for SDLT alongside your deposit, fees and monthly repayments, then compare deals from 90+ lenders to find the right fit.