How Stamp Duty works in 2026
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy a residential property or land in England or Northern Ireland above a certain price. It works a bit like Income Tax: the price is split into slices, or bands, and each slice is taxed at its own rate. You never pay the higher rate on the whole price, only on the part that falls inside that band. The calculator above shows every band so you can see exactly where your tax comes from.
Standard rates (moving home)
Since 1 April 2025 the standard residential rates are: 0% on the first £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% on anything above £1.5 million. For example, a £295,000 home costs £4,750: nothing on the first £125,000, £2,500 on the next £125,000 and £2,250 on the final £45,000. That matches HMRC’s own worked example.
First-time buyer relief
If you and everyone you’re buying with have never owned a home, in the UK or abroad, and you’ll live in the property as your main home, you pay nothing up to £300,000 and 5% on the portion from £300,001 to £500,000. There is a cliff edge, though. If the price is even £1 over £500,000 you lose the relief completely and pay the standard rates on the whole price. A £500,000 flat costs a first-time buyer £10,000; at £500,001 the bill jumps to £15,000. Shared ownership has its own rules, so ask your conveyancer if that applies to you.
Second homes, buy-to-let and the 5% surcharge
If, at the end of completion day, you’ll own more than one residential property worth £40,000 or more anywhere in the world, you’ll usually pay the higher rates for additional dwellings. That adds 5 percentage points to every band, so the rates become 5%, 7%, 10%, 15% and 17%. If you buy a new main home before selling your old one, you pay the higher rates at first. You can claim the surcharge back if you sell your previous main home within 36 months.
Buying from outside the UK
Buyers who weren’t in the UK for at least 183 days in the 12 months before the purchase pay an extra 2% on top of every other rate, including first-time buyer and second home rates. If any joint buyer is non-resident, everyone is treated as non-resident, unless you’re married or in a civil partnership and one of you is UK resident. You can claim a refund if you later spend 183 days in the UK within the qualifying period.
Paying the tax
Your SDLT return must reach HMRC, with payment, within 14 days of completion. Your solicitor normally takes care of this for you. Remember to budget for Stamp Duty on top of your deposit, because most lenders won’t let you add it to the mortgage. Pair this tool with the UK mortgage calculator to see your full monthly cost.
Rates source: GOV.UK – SDLT residential property rates, higher rates for additional properties and non-UK resident rates. Last checked October 2026.