How Much Stamp Duty Will I Pay? A Complete UK Guide for 2025/26

Stamp duty land tax is one of the largest upfront costs when buying property in England and Northern Ireland. The amount you pay depends on the purchase price, whether you are a first-time buyer, and whether you already own another residential property. After the temporary relief ended on 31 March 2025, the nil rate band reverted to £125,000, meaning most buyers pay more than they would have during the relief period.

This guide explains exactly how stamp duty is calculated, provides worked examples at common price points including £200,000, £250,000, and £400,000, and covers the second home surcharge that applies to buy-to-let and additional property purchases. Use our stamp duty calculator to get an exact figure for your purchase price and circumstances.

How stamp duty is calculated: the banded system

SDLT is not charged at a single flat rate on the entire purchase price. It works like income tax: different rates apply to different portions of the price, and you only pay each rate on the slice within that band. Buying a property for £400,000 does not mean paying 5% on the whole amount. You pay nothing on the first £125,000, 2% on the next £125,000, and 5% on the remaining £150,000.

The calculation runs through each band in sequence. Whatever portion of the purchase price falls within each band is multiplied by that band's rate, and the totals are added together. This banded structure means the effective rate on lower-priced properties is modest, while higher-priced homes attract progressively more tax as larger portions fall into the 5%, 10%, and 12% bands.

Scotland uses Land and Buildings Transaction Tax with different bands and thresholds. Wales uses Land Transaction Tax. This guide covers SDLT for England and Northern Ireland only. If you are buying in Scotland or Wales, the principles are similar but the rates and bands differ.

Worked example: stamp duty on a £200,000 property

For a standard residential purchase at £200,000, the calculation runs as follows. The first £125,000 is charged at 0%, producing £0. The remaining £75,000 falls in the 2% band, producing £1,500. Total SDLT is £1,500.

A first-time buyer purchasing at £200,000 pays nothing. First-time buyer relief means no stamp duty on the first £300,000 of the purchase price, so the entire £200,000 falls within the nil threshold. This is a meaningful saving compared to a non-first-time buyer on the same property.

If the £200,000 property is a second home or buy-to-let, the 5% additional dwelling surcharge applies to the full purchase price on top of standard rates. Standard SDLT is £1,500. The surcharge is 5% of £200,000, which is £10,000. Total SDLT is £11,500.

Worked example: stamp duty on a £220,000 property

Many buyers search specifically for how much stamp duty applies on a £220,000 purchase. For a standard buyer, the first £125,000 is at 0% and the remaining £95,000 is at 2%, giving £1,900 in total SDLT. This is a common price point for first homes outside London and the South East.

A first-time buyer at £220,000 again pays £0, as the entire price sits below the £300,000 first-time buyer nil threshold. A second home buyer at £220,000 pays standard SDLT of £1,900 plus a 5% surcharge of £11,000, totalling £12,900. The surcharge more than quintuples the tax bill compared to a standard purchase at the same price.

Worked example: stamp duty on a £250,000 property

At £250,000, a standard buyer pays 0% on the first £125,000 and 2% on the next £125,000. That produces £2,500 in total SDLT. This price point sits exactly at the top of the 2% band, meaning no portion of the price attracts the 5% rate.

A first-time buyer at £250,000 pays nothing, as the full price is within the £300,000 nil threshold. A second home or buy-to-let purchase at £250,000 attracts standard SDLT of £2,500 plus a 5% surcharge of £12,500 on the full price, giving a total of £15,000. For buy-to-let investors, this upfront cost must be factored into the total acquisition cost when calculating rental yield.

Worked example: stamp duty on a £400,000 property

At £400,000, the calculation spans three bands for a standard buyer. The first £125,000 is at 0%, the next £125,000 is at 2% (£2,500), and the remaining £150,000 is at 5% (£7,500). Total standard SDLT is £10,000.

A first-time buyer at £400,000 pays 0% on the first £300,000 and 5% on the remaining £100,000, giving £5,000 in total. First-time buyer relief still applies because the property is below the £500,000 ceiling, but the portion above £300,000 is taxed at 5%.

A second home purchase at £400,000 attracts standard SDLT of £10,000 plus a 5% surcharge of £20,000, totalling £30,000. This is a substantial acquisition cost that significantly affects the net rental yield on a buy-to-let investment at this price point.

First-time buyer relief in 2025/26

First-time buyers receive relief that significantly reduces or eliminates their SDLT bill. From 1 April 2025, first-time buyers pay no stamp duty on the first £300,000 of the purchase price. On the portion between £300,001 and £500,000 they pay 5%. Properties priced above £500,000 receive no first-time buyer relief at all, and standard rates apply from the first pound.

To qualify, you must never have owned a residential property anywhere in the world. Joint purchases require both buyers to be first-time buyers. If one person in a couple has previously owned property, neither party can claim relief. Our stamp duty guide for first-time buyers covers eligibility rules, the £500,000 cliff edge, and planning strategies in full detail.

The £500,000 cliff edge

The £500,000 cut-off creates a sharp discontinuity. A first-time buyer purchasing at £499,999 pays £9,999 in stamp duty (5% on the £199,999 above £300,000). At £500,001, first-time buyer relief disappears entirely and standard rates apply on the whole sum, producing roughly £12,500. Crossing that line by £2 adds over £2,500 to the tax bill. Buyers near this threshold should model both sides carefully before exchanging contracts.

Second home and buy-to-let stamp duty surcharge

Anyone purchasing an additional residential property pays a surcharge on top of the standard SDLT rates. From October 2024, that surcharge increased from 3% to 5%. It applies to every pound of the purchase price, not just the portion above a threshold. Buy-to-let investors, holiday home buyers, and anyone whose name appears on a mortgage for another property at completion face this charge.

The surcharge applies even if the additional property is abroad. If you own a flat in Spain and buy a home in England, the English purchase is treated as an additional dwelling unless you are replacing your main residence under the specific replacement rules. Our second home stamp duty guide explains when the surcharge applies, how to reclaim it if you sell your previous main home, and common scenarios that catch buyers out.

Reclaiming the surcharge when replacing your main home

If you buy a new main residence before selling your old one, you pay the surcharge at completion. If you sell the previous main residence within three years, HMRC will refund the additional portion of SDLT. The refund claim must be made within twelve months of selling the old property or three years of the original purchase, whichever is later. Timing matters: many buyers who upsize before selling their existing home rely on this reclaim mechanism to manage cash flow at completion.

When stamp duty is due and how to pay

SDLT must be paid within fourteen days of completion. In practice, your solicitor or conveyancer handles the return and payment as part of the completion process. The amount is typically collected from you before completion day and submitted to HMRC on your behalf. Late payment attracts penalties and interest, so ensuring your solicitor has cleared funds in advance is important.

Stamp duty is not negotiable and cannot be added to your mortgage in most cases. It must be paid from your own funds alongside the deposit and other completion costs such as solicitor fees, survey costs, and Land Registry fees. Budgeting for SDLT early in the buying process prevents last-minute shortfalls that can delay or derail completion.

Non-resident surcharge for overseas buyers

Non-UK residents pay an additional 2% surcharge on top of standard SDLT rates when purchasing residential property in England and Northern Ireland. This applies regardless of whether it is a first or additional property. A non-resident buying a £400,000 home as their only UK property pays standard SDLT of £10,000 plus a 2% non-resident surcharge of £8,000, totalling £18,000 before any second home surcharge is considered.

Residency for SDLT purposes is determined by reference to a specific test in the legislation, not simply where you pay tax or hold a passport. If you are buying from abroad or have recently moved to the UK, check whether the non-resident surcharge applies to your purchase before budgeting.

How to reduce your stamp duty bill

Legitimate ways to reduce SDLT are limited because the tax is calculated on the purchase price. First-time buyer relief is the most significant reduction available. If you are eligible, ensure your solicitor confirms first-time buyer status on the SDLT return. For couples where only one party is a first-time buyer, consider whether buying in a single name unlocks relief, though this has mortgage and legal implications that need careful advice.

Buying below a band threshold reduces the bill incrementally. A property at £249,999 rather than £250,001 keeps the entire price in the 2% band rather than pushing £1 into the 5% band. While this is a modest saving at this level, at higher price points the band structure creates larger jumps. Some buyers negotiate the purchase price to sit just below a threshold, though this is only worthwhile when the saving exceeds any compromise on the property itself.

For buy-to-let investors, factoring SDLT into the total acquisition cost is essential for accurate yield calculations. A property that looks attractive on gross yield may be less compelling once a £15,000 or £30,000 stamp duty bill is included in the denominator. Use the stamp duty calculator alongside a rental yield calculator to model the full picture before committing to a purchase.

Common stamp duty mistakes to avoid

Assuming the temporary relief rates still apply is the most frequent error in 2025. The nil rate band reverted to £125,000 on 1 April 2025, and buyers who budgeted using the old £250,000 threshold find themselves short at completion. Always use current rates when planning your purchase.

Overlooking the second home surcharge when buying before selling is another common issue. If you complete on a new home while still owning your previous one, the surcharge applies even if you intend to sell within weeks. Budget for the surcharge at completion and plan the reclaim separately. Finally, joint buyers should confirm both parties' property ownership history before assuming first-time buyer relief applies.

Stamp duty is a fixed cost that does not vary by lender or mortgage product, which makes it one of the easier figures to calculate accurately before you buy. Model your exact purchase price, buyer status, and property type in the stamp duty calculator and build the result into your total budget alongside deposit, legal fees, and moving costs.