What Is Stamp Duty and How Much Will You Pay?
Stamp duty is one of the biggest upfront costs of buying a property in the UK, yet it's one that many buyers don't fully account for until late in the process. Understanding exactly how much you'll owe, and when you need to pay it, is an important part of budgeting for your purchase. Here's what it is, how it works, and how much you can expect to pay.
What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax paid to the government when you buy a property or piece of land in England or Northern Ireland. It's a one-off payment made at the time of purchase and your solicitor will handle the return and payment to HMRC on your behalf. You have 14 days from completion to pay and missing that deadline can result in penalties and interest charges. Unlike most taxes, which fund public services, stamp duty is simply a tax you pay for the act of buying a property. There is no service attached to it and no direct benefit beyond completing your purchase.
Scotland and Wales have their own equivalent taxes. In Scotland it's Land and Buildings Transaction Tax (LBTT) and in Wales it's Land Transaction Tax (LTT), both with their own rates and thresholds.
How does stamp duty work?
Stamp duty is calculated in bands, similar to income tax. You don't pay the same rate on the whole purchase price, you pay each rate only on the portion of the price that falls within that band. The current standard rates in England and Northern Ireland are as follows:
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 £1,500,000
12% on any amount above £1,500,000
So on a £300,000 property, a standard buyer would pay 0% on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the remaining £50,000 (£2,500), giving a total stamp duty bill of £5,000.
First time buyer relief
If you're buying your first home in England or Northern Ireland and the property costs £500,000 or less, you benefit from first time buyer relief. This means you pay 0% on the first £300,000 and 5% on the portion between £300,001 and £500,000.
So a first time buyer purchasing a £300,000 property pays no stamp duty at all. A first time buyer purchasing a £400,000 property pays 5% on £100,000, giving a stamp duty bill of £5,000 rather than the £10,000 a home mover would pay on the same property.
If the property costs more than £500,000, first time buyer relief does not apply and standard rates are used instead.
Additional property surcharge
If you already own a residential property and are buying another, whether as a second home, a buy to let or a holiday home, a 5% surcharge is added on top of the standard rates across all bands. This applies even if you're replacing your main residence and temporarily own two properties, though you can claim a refund if you sell your previous home within three years.
When did the rates last change?
The current rates came into effect on 1 April 2025, when a period of temporary relief introduced in 2022 came to an end. The nil rate threshold dropped from £250,000 back to £125,000, and the first time buyer relief threshold dropped from £425,000 to £300,000. No further changes have been announced for 2026.
How to work out what you'll pay
The simplest way to calculate your stamp duty is to use an online SDLT calculator. The government's own calculator is the most reliable source, or your solicitor will confirm the exact figure as part of the conveyancing process. Make sure you factor the full amount into your budget before you make an offer.
For more on the conveyancing process and what your solicitor will be handling on your behalf, read our guide to the conveyancing process. And if you're still at the offer stage, our guide to making an offer on a house covers the key questions to ask before you commit.
The full buying checklist
The Home Truths Guide includes 100+ essential questions to ask at every stage of buying a home in the UK, from first viewing through to completion, so you're always prepared for what comes next.
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