Stamp duty for first-time buyers: where it stands in 2026

The first-time buyer rules in 2026

Do first-time buyers pay stamp duty? Often not much, and sometimes nothing at all. If you’re buying your first home in England or Northern Ireland, Stamp Duty Land Tax (SDLT) works in bands: you pay nothing on the first £300,000, then 5% on the portion between £300,001 and £500,000. Buy for more than £500,000 and first-time buyer relief disappears completely, so you pay standard rates on the whole price.

These thresholds have applied since 1 April 2025, when the more generous temporary reliefs (0% up to £425,000, with relief stretching to £625,000) came to an end. The latest Budget left them unchanged, so this is the position for the 2026-27 tax year.

A worked example: the £500,000 cliff-edge

Take a £350,000 first home. You pay 0% on the first £300,000 and 5% on the remaining £50,000, which comes to £2,500 in total. You can run your own figure through the stamp duty calculator in seconds.

The number to watch is £500,000. A first-time buyer paying exactly £500,000 owes £10,000. Go a pound over and the relief vanishes: standard rates then apply from £125,000 upwards, and the bill jumps sharply. If you’re negotiating near that line, a small price change can cost far more than it looks.

If you’re not a first-time buyer

For movers and other buyers, the standard stamp duty rates start with a £125,000 residential nil-rate band. Above that you pay 2% on the slice to £250,000, then 5% to £925,000, and more again beyond it. Buying an additional property, whether a second home or a buy-to-let, adds a 5% surcharge on top of those standard rates.

Scotland and Wales are different

SDLT only covers England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax (LBTT), where first-time buyers get a £175,000 nil-rate band with no upper price cap. Wales charges Land Transaction Tax (LTT), which has no first-time buyer relief and a £225,000 nil-rate band for everyone. Check which one applies before you budget.