Stamp Duty Land Tax (SDLT) is one of the largest costs in buying a property in England, yet many buyers don’t fully understand how it’s calculated until they get the bill. Here’s a clear explanation.
What is Stamp Duty Land Tax?
SDLT is a tax paid to the government when you buy a property or land in England or Northern Ireland. Scotland has its own equivalent — Land and Buildings Transaction Tax (LBTT) — and Wales has Land Transaction Tax (LTT). Rates and thresholds differ, so check the relevant authority for Scottish or Welsh properties.
| Country | Tax | Authority |
|---|---|---|
| England & N. Ireland | Stamp Duty Land Tax (SDLT) | HMRC |
| Scotland | Land and Buildings Transaction Tax (LBTT) | Revenue Scotland |
| Wales | Land Transaction Tax (LTT) | Welsh Revenue Authority |
Who pays stamp duty?
The buyer pays — not the seller. It’s due within 14 days of completion, and your conveyancer will normally handle the submission and payment as part of the legal process.
How is it calculated?
SDLT is calculated in bands, similar to income tax — you pay the relevant rate only on the portion of the purchase price that falls within each band, not on the whole amount.
These are the standard residential rates for 2026:
| Purchase price band | SDLT rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
First-time buyers: 0% up to £300,000, 5% on £300,001–£500,000. Additional dwellings: add a 5% surcharge across all bands.
Example: buying at £295,000 — 0% on the first £125,000 (£0), 2% on the next £125,000 (£2,500), 5% on the remaining £45,000 (£2,250) — total SDLT of £4,750.
What changed in April 2025
The temporary higher thresholds introduced in 2022 ended on 31 March 2025. From 1 April 2025 the bands returned to their previous levels: the nil-rate threshold dropped from £250,000 back to £125,000, and first-time buyer relief dropped from £425,000 back to £300,000. In practice most buyers now pay more SDLT than they did during the temporary period — the rates and thresholds above are the current ones for 2026.
First-time buyer stamp duty relief (2026)
First-time buyers pay no SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the property costs more than £500,000, first-time buyer relief is lost entirely and standard rates apply.
Example: a first-time buyer purchasing at £400,000 pays 0% on the first £300,000 (£0) and 5% on the next £100,000 (£5,000) — £5,000 in total. On the same property a home-mover would pay £10,000, so the relief saves £5,000.
To qualify, you must never have previously owned a residential property anywhere in the world — including one received as a gift or through inheritance.
Additional dwelling surcharge
If you’re buying an additional residential property — a second home, buy-to-let, or holiday home — a 5% surcharge applies on top of all standard rates across every band.
Separately, non-UK residents pay an additional 2% surcharge on top of standard rates.
When and how do you pay?
SDLT is due within 14 days of completion. Your conveyancer submits the return and payment to HMRC on your behalf as part of the legal process — you don’t need to do it yourself. The cost is typically included in your conveyancing quote.
What you’ll actually pay: stamp duty by price, with worked examples
Rates are one thing. What you’ll actually owe on your purchase is another. Here’s the maths, worked through at the prices that matter, so you can find your number without needing a spreadsheet.
England and Northern Ireland: standard rate and additional-property rate side by side
| Portion of the price | Standard rate | Additional property rate* |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Above £1.5 million | 12% | 17% |
*Applies if buying a second home, buy-to-let, or any additional residential property. Add a further 2% on top if you’re a non-UK resident — more on both below.
Quick way to work out the surcharge version of any figure: take the standard SDLT total and add 5% of the full purchase price (7% if you’re also a non-UK resident). It always comes out the same as recalculating every band — it’s just faster.
First-time buyers get their own bands — but only up to £500,000
| Portion of the price | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Anything over £500,000 | No relief at all — standard rates apply to the whole price |
Worked examples
£280,000 (around the UK average) — Standard buyer: 2% on £125,000 (£2,500) + 5% on £30,000 (£1,500) = £4,000. First-time buyer: whole price under £300,000 = £0.
£350,000 — Standard buyer: £2,500 + 5% on £100,000 (£5,000) = £7,500. First-time buyer: 5% on £50,000 = £2,500.
For a full breakdown of all buying costs beyond stamp duty, see our guide on how much it costs to buy a house in the UK.
Common questions
What is Stamp Duty Land Tax?
SDLT is a tax paid by the buyer when purchasing a property or land in England or Northern Ireland. It's due within 14 days of completion and your conveyancer handles the submission and payment as part of the legal process.
How is stamp duty calculated?
In bands, like income tax — you pay each rate only on the portion of the purchase price that falls within that band. Standard 2026 rates: 0% on the first £125,000; 2% on £125,001–£250,000; 5% on £250,001–£925,000; 10% on £925,001–£1.5m; 12% above £1.5m.
Do first-time buyers pay stamp duty?
Not on the first £300,000. First-time buyers pay 0% up to £300,000 and 5% on the portion from £300,001 to £500,000; above a £500,000 purchase price the relief is lost entirely and standard rates apply. A first-time buyer at £400,000 pays £5,000, versus £10,000 for a home-mover.
On Woosh, your estimated stamp duty is shown upfront on every listing — no surprises at completion. And we connect you with vetted conveyancers who handle the SDLT filing for you.
Browse properties on Woosh
