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.
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.
For standard residential purchases in 2026: 0% on the first £125,000; 2% on the portion from £125,001 to £250,000; 5% on the portion from £250,001 to £925,000; 10% on the portion from £925,001 to £1.5 million; 12% on anything above £1.5 million.
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.
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. If the property costs more than £500,000, first-time buyer relief is lost entirely and standard rates apply.
To qualify, you must never have previously owned a residential property anywhere in the world — including 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.
How to calculate your bill
HMRC has an official SDLT calculator at gov.uk. Your conveyancer will confirm the exact amount before completion.
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 get a stamp duty discount?
Yes. First-time buyers pay 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. If the property costs more than £500,000, the relief is lost entirely and standard rates apply.
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.
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