How Is Stamp Duty Calculated in the UK?
Updated June 2026 · 6 min read · Free calculator inside
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Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a home or land in England or Northern Ireland above a certain price. It catches a lot of buyers by surprise because it is not a single flat percentage — it is charged in slices, like income tax. This guide explains exactly how it is calculated for the 2026 rates, with worked examples for first-time buyers, home movers and people buying an additional property.
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The single most important thing to understand is that SDLT is "progressive". You do not pay one rate on the whole purchase price. Instead, each slice of the price falls into a band, and you pay that band's rate only on the portion of the price inside it.
So if you buy a £300,000 home as a standard buyer, you pay 0% on the first £125,000, 2% on the next £125,000, and 5% only on the final £50,000 — not 5% on the whole £300,000. This is why a quick "price × rate" sum almost always overstates the bill.
Standard residential stamp duty rates (2026)
These rates apply if you are buying your only home and are not a first-time buyer.
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Rates for England & Northern Ireland. Scotland (LBTT) and Wales (LTT) use different systems.
Worked example: a £350,000 home
- First £125,000 at 0% = £0
- Next £125,000 (£125k–£250k) at 2% = £2,500
- Final £100,000 (£250k–£350k) at 5% = £5,000
- Total SDLT = £7,500 (an effective rate of about 2.1%)
First-time buyer relief
First-time buyers pay no stamp duty on the first £300,000 and 5% on the portion between £300,000 and £500,000. If the property costs more than £500,000 you get no first-time buyer relief at all and pay the standard rates.
For example, a first-time buyer purchasing at £400,000 pays 0% on the first £300,000 and 5% on the remaining £100,000 — a total of £5,000.
The additional property surcharge
If you are buying a second home, a buy-to-let, or any additional residential property, a surcharge of 5 percentage points is added to every band. So the first £125,000 is taxed at 5% (instead of 0%), the next band at 7%, and so on.
The surcharge can usually be reclaimed if you are replacing your main residence and sell your previous home within the time limit set by HMRC.
Frequently Asked Questions
Do first-time buyers pay any stamp duty?
Not on the first £300,000. Above that you pay 5% on the portion up to £500,000. If the home costs more than £500,000, first-time buyer relief does not apply and standard rates are used.
When do I have to pay stamp duty?
SDLT must be paid to HMRC within 14 days of completion. In practice your solicitor or conveyancer usually files the return and pays it on your behalf from the funds at completion.
Is stamp duty different in Scotland and Wales?
Yes. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), each with their own bands. SDLT only applies in England and Northern Ireland.
Can I add stamp duty to my mortgage?
SDLT itself is normally paid in cash at completion, but some buyers borrow slightly more to cover it. Doing so increases your loan-to-value and the total interest you pay over the mortgage term.
Calculate your exact stamp duty in seconds
Skip the maths — get an instant, up-to-date figure with our free calculator.
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⚠️ Disclaimer: This guide is for general information only and does not constitute financial, tax, or legal advice. Rates and thresholds can change — always check the latest figures on GOV.UK and consult a qualified professional before making decisions.