Stamp Duty Explained UK (2026) — Rates, Exemptions & Calculator
Stamp Duty can add thousands to your purchase costs. Find out exactly what you will pay, when relief applies, and how to keep the bill as low as possible.
Stamp Duty Land Tax (SDLT) is the tax you pay to HM Revenue & Customs when you buy a residential property or piece of land over a certain price in England and Northern Ireland. Scotland and Wales have their own equivalents — the Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively — but the principles are broadly similar. For most buyers the stamp duty bill is one of the largest upfront costs after the deposit itself, so understanding exactly how it is calculated, when relief is available, and what strategies exist to minimise it is essential to budgeting accurately for your move.
The SDLT system works on a tiered basis, much like income tax. You do not pay a single flat rate on the entire purchase price; instead, each portion of the price that falls within a particular band is taxed at the rate for that band. This means the effective rate you pay is always lower than the headline rate for the highest band your purchase reaches. Since April 2025 the thresholds reverted to their pre-September 2022 levels after the temporary increases introduced by the previous government expired, so it is important to work with the current figures rather than older ones you may find on the internet.
In this guide we walk through the standard residential SDLT bands for 2025, explain first-time buyer relief (including who qualifies and what the savings look like), cover the 5% additional property surcharge for second homes and buy-to-let purchases, and provide worked examples at common price points so you can see exactly what you would owe. We also link to our free stamp duty calculator so you can plug in your own numbers in seconds.
Current SDLT bands for 2025
Since 1 April 2025 the standard residential SDLT thresholds in England and Northern Ireland are as follows. The nil-rate band starts at zero and runs up to £125,000, meaning no tax is due on the first £125,000 of any purchase. The next band covers the portion from £125,001 to £250,000 at 2%. From £250,001 to £925,000 the rate is 5%. Between £925,001 and £1,500,000 it rises to 10%, and anything above £1,500,000 is taxed at 12%.
Because the system is tiered, buying a property for exactly £300,000 does not mean you pay 5% on the full £300,000. Instead you pay nothing on the first £125,000, 2% on the next £125,000, and 5% on the remaining £50,000 — a total of £5,000.
Since 1 April 2025 the standard residential SDLT thresholds in England and Northern Ireland are as follows. The system is tiered, so you only pay each rate on the portion of the price that falls within that band — not on the whole purchase price. Use our stamp duty calculator to get an instant breakdown for your 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
If you are a first-time buyer purchasing a property for £625,000 or less you benefit from a higher nil-rate band. You pay no stamp duty on the first £300,000 and 5% on the portion from £300,001 to £625,000. If the price exceeds £625,000 the relief is lost entirely and you pay at the standard rates.
To qualify, none of the purchasers can have previously owned a residential property anywhere in the world. This includes inherited property you have lived in. Joint buyers must both be first-time buyers for the relief to apply.
If you are a first-time buyer purchasing a property for £625,000 or less you benefit from a higher nil-rate band. You pay no stamp duty on the first £300,000 and 5% on the portion from £300,001 to £625,000. If the price exceeds £625,000 the relief is lost entirely and you pay at the standard rates.
To qualify, none of the purchasers can have previously owned a residential property anywhere in the world. This includes inherited property you have lived in. Joint buyers must both be first-time buyers for the relief to apply. Read our guide to first-time buyer mortgages for more on eligibility and available schemes.
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
If you already own a residential property and you are buying an additional one — whether that is a buy-to-let investment, a holiday home, or simply a second property — you must pay a 5% surcharge on top of the standard SDLT rates. This surcharge applies to the entire purchase price, starting from the first pound.
The surcharge also applies if you are replacing your main residence but have not yet sold your previous home at the point of completion. In that scenario you can claim a refund of the surcharge if you sell the old property within 36 months.
If you already own a residential property and you are buying an additional one — whether that is a buy-to-let investment, a holiday home, or simply a second property — you must pay a 5% surcharge on top of the standard SDLT rates. This surcharge applies to the entire purchase price, starting from the first pound.
The surcharge also applies if you are replacing your main residence but have not yet sold your previous home at the point of completion. In that scenario you can claim a refund of the surcharge if you sell the old property within 36 months. Our moving home guide explains how to coordinate your sale and purchase.
The surcharge adds up quickly
On a £300,000 buy-to-let purchase the standard SDLT would be £5,000. With the 5% additional property surcharge the total rises to £20,000 — an extra £15,000. Always factor this into your investment calculations.
Surcharge impact at common price points
Worked examples at common price points
Seeing real numbers makes SDLT much easier to understand. Below are calculations for three common UK purchase prices using the standard 2025 bands. Remember, first-time buyers purchasing at £625,000 or below will pay less than these figures.
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.
Seeing real numbers makes SDLT much easier to understand. Below are calculations for three common UK purchase prices using the standard 2025 bands. Remember, first-time buyers purchasing at £625,000 or below will pay less than these figures thanks to the enhanced nil-rate band.
SDLT calculation for a £450,000 property
- 01
Band 1: £0 – £125,000
£125,000 at 0% = £0
- 02
Band 2: £125,001 – £250,000
£125,000 at 2% = £2,500
- 03
Band 3: £250,001 – £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
While you cannot avoid stamp duty altogether on properties above the nil-rate threshold, there are legitimate strategies that can reduce the amount you pay. Some are straightforward, while others require careful planning and professional advice.
First-time buyer relief is the most common saving. Beyond that, certain property types (such as shared ownership purchases or properties bought through a company) have different rules, and in some situations it may be possible to apportion part of the purchase price to moveable contents (fixtures and fittings) that are not subject to SDLT.
While you cannot avoid stamp duty altogether on properties above the nil-rate threshold, there are legitimate strategies that can reduce the amount you pay. It is worth factoring SDLT into your overall budget alongside your deposit and borrowing amount.
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 quickest way to find out exactly what you will owe is to use our free stamp duty calculator. It covers standard purchases, first-time buyer relief, and additional property surcharges. You can also use our repayment calculator to see how stamp duty affects your total borrowing costs when added to the mortgage.
If you are unsure whether you qualify for any relief or want to discuss how stamp duty fits into your overall purchase budget, speak to one of our mortgage advisers. We can help you plan the full cost of buying, from deposit and SDLT through to legal fees and moving costs.
The quickest way to find out exactly what you will owe is to use our free stamp duty calculator. It covers standard purchases, first-time buyer relief, and additional property surcharges. You can also use our repayment calculator to see how SDLT affects your total borrowing costs.
Useful tools
Budget for all upfront costs
Stamp duty is just one part of your buying costs. Do not forget solicitor fees (£1,000–£2,000), survey costs (£300–£1,500), and mortgage arrangement fees. A broker can help you map out the full picture.
Related guides
- First-Time Buyer Guide
Everything first-time buyers need to know — including stamp duty relief that could 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.
- Regulator
- FCA register
- Updated
- 24 February 2026
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