Stamp Duty Explained: What Home Buyers Need to Know
Updated: Aug 24
Buying a home involves more than finding a deposit and arranging a mortgage. Depending on the property you're buying and your circumstances, you may also need to budget for Stamp Duty Land Tax (SDLT).
Stamp Duty can add thousands of pounds to the cost of buying a property, so it’s worth understanding roughly what you might pay before you start making offers.
In this guide, we explain how Stamp Duty works, the current rates, the relief available to first-time buyers and some of the situations where you could pay more.
This guide reflects the Stamp Duty Land Tax rules in force in August 2026.
What is Stamp Duty Land Tax?
Stamp Duty Land Tax, usually shortened to SDLT or simply called Stamp Duty, is a tax that may be payable when you buy property or land in England or Northern Ireland.
Scotland and Wales have their own property transaction taxes, so the figures in this guide don't apply to purchases there (links to their respective calculators are in the FAQs at the end of this article).
How much Stamp Duty you pay depends on several things, including:
the price of the property
whether you're a first-time buyer
whether you'll own another residential property after the purchase
whether you're replacing your main home
your residency status for SDLT purposes
whether any relief or exemption applies.
Unlike a flat percentage charged against the whole purchase price, standard residential Stamp Duty is normally calculated in bands. You pay the relevant rate only on the part of the purchase price that falls within each band.
You can check how much SDLT you would need to pay based on a property price, using the UK Government's SDLT Calculator: Calculate Stamp Duty Land Tax (SDLT)
What are the current Stamp Duty rates?
If you're buying a residential property in England or Northern Ireland and, after the purchase, it will be the only residential property you own, the standard SDLT rates are:
Portion of the property price | SDLT rate |
Up to £125,000 | 0% |
£125,001 to £250,000 | 2% |
£250,001 to £925,000 | 5% |
£925,001 to £1.5 million | 10% |
Above £1.5 million | 12% |
For example, if you buy a home for £300,000, you don't simply pay 5% on £300,000.
Instead:
the first £125,000 is charged at 0%
the next £125,000 is charged at 2% = £2,500
the remaining £50,000 is charged at 5% = £2,500
Total Stamp Duty: £5,000
You can also use our Mortgage Affordability Calculator to check how Stamp Duty might affect your overall budget.
How much Stamp Duty would I pay?
Here are a few examples using the standard residential rates:
Purchase price | Standard SDLT |
£150,000 | £500 |
£250,000 | £2,500 |
£300,000 | £5,000 |
£400,000 | £10,000 |
£600,000 | £20,000 |
£1,200,000 | £63,750 |
These examples assume the property will be your only residential property and that no special reliefs or surcharges apply.
Your solicitor or conveyancer will normally confirm the exact amount payable as part of the purchase process.
Do first-time buyers pay Stamp Duty?
First-time buyers may qualify for First-Time Buyers' Relief.
If you qualify and are buying a property for £500,000 or less, the current rates are:
0% on the first £300,000
5% on the portion between £300,001 and £500,000
For example:
Buying for £300,000
A qualifying first-time buyer would pay:
£0 Stamp Duty
Buying for £400,000
You would pay:
0% on the first £300,000
5% on the remaining £100,000
Total Stamp Duty: £5,000
Buying for £500,000
You would pay:
0% on the first £300,000
5% on the remaining £200,000
Total Stamp Duty: £10,000
However, if the property costs more than £500,000, First-Time Buyers' Relief isn't available and the normal residential rates apply to the whole purchase.
To qualify, you and anyone you're buying with must meet the first-time buyer rules. Broadly, that means you must not previously have owned an interest in a residential property anywhere in the world, and you must intend to occupy the new property as your main home.
What if I'm buying an additional property?
Different rates may apply if, at the end of the day you complete your purchase, you'll own more than one residential property.
The higher rates are currently 5 percentage points above the standard residential SDLT rates.
That means the higher-rate bands currently start at:
Portion of the property price | Higher SDLT rate |
Up to £125,000 | 5% |
£125,001 to £250,000 | 7% |
£250,001 to £925,000 | 10% |
£925,001 to £1.5 million | 15% |
Above £1.5 million | 17% |
For example, the SDLT on a £300,000 additional residential property would usually be £20,000.
This can be particularly relevant when buying a buy-to-let property, second home or purchasing a new home before selling your existing one.
What happens if I buy my new home before selling my old one?
This is an important one for home movers.
If you haven't sold your existing main residence by the time you complete on your new home, you may initially have to pay the higher rates of SDLT because you'll own two properties at the end of completion day.
However, if the new property replaces your main residence and you sell your former main residence within the permitted time limit, you may be able to reclaim the additional SDLT paid.
This is worth discussing with your conveyancer before exchanging contracts, particularly if your sale and purchase aren't completing on the same day.
Do non-UK residents pay more Stamp Duty?
There can also be an additional 2% SDLT surcharge for some buyers who are treated as non-UK resident for Stamp Duty purposes.
Importantly, the SDLT residency test isn't necessarily the same as your residency status for other UK taxes.
The non-resident surcharge can also apply on top of other SDLT rates, including the higher rates for additional properties.
If this might affect you, take specialist tax or legal advice before relying on an estimated Stamp Duty figure.
What about Stamp Duty on shared ownership?
Shared ownership has its own Stamp Duty rules.
Depending on the way the purchase is structured, buyers may have choices around how SDLT is calculated, including making a market value election or paying SDLT in stages.
First-time buyers purchasing shared ownership properties may also be able to claim First-Time Buyers' Relief where the qualifying conditions are met.
Because shared ownership Stamp Duty calculations can be more complicated than a standard purchase, we'd recommend confirming the position with your solicitor or conveyancer.
When do you pay Stamp Duty?
An SDLT return and any tax due normally need to reach HMRC within 14 days of the effective date of the transaction, which is usually completion.
In practice, if you're using a solicitor or conveyancer, they will normally calculate the amount due, collect it from you and submit the return and payment to HMRC on your behalf.
This means you should factor Stamp Duty into the cash you'll need for your purchase alongside your:
deposit
solicitor's fees
searches
survey or valuation costs
mortgage fees
removals and other moving costs.
Can I add Stamp Duty to my mortgage?
Stamp Duty isn't normally treated like a mortgage product fee that can simply be added to your mortgage balance.
However, the amount you borrow, your deposit and the cash you retain for purchase costs all form part of the overall funding picture.
For example, someone with a larger deposit might choose to put slightly less of their savings towards the deposit so that they retain enough cash to meet Stamp Duty and other costs, provided the resulting mortgage still meets the lender's loan-to-value and affordability requirements.
A mortgage adviser can help you look at how the overall purchase could be funded, but your solicitor or tax adviser should confirm your actual SDLT liability.
Should Stamp Duty affect how much I offer on a property?
It should certainly be included in your budget.
It's easy to focus on the deposit and monthly mortgage payment, but buying costs can significantly affect the amount of cash you need to complete.
Before offering on a property, it can therefore help to work backwards from:
the savings you have available
the deposit required
your estimated Stamp Duty
legal and moving costs
the mortgage you may be able to obtain.
That gives you a much more realistic idea of the price range you can comfortably consider.
How can I calculate my Stamp Duty?
HMRC provides an online Stamp Duty Land Tax calculator that can give you an estimate based on the details of your purchase.
For straightforward purchases, it's a useful starting point. For more complicated circumstances — such as additional properties, shared ownership, transfers of equity, trusts or non-UK residency — speak to your solicitor or a suitably qualified tax adviser.
Frequently Asked Questions About Stamp Duty
How much Stamp Duty do I pay on a £300,000 house?
Under the standard residential rates, the SDLT would currently be £5,000.
A qualifying first-time buyer purchasing for £300,000 would currently pay £0.
How much Stamp Duty do I pay on a £400,000 house?
Under the standard residential rates, the SDLT would currently be £10,000.
A qualifying first-time buyer purchasing for £400,000 would currently pay £5,000.
Different rates may apply if you're buying an additional property or are subject to another surcharge.
What is the Stamp Duty threshold for first-time buyers?
Qualifying first-time buyers currently pay no SDLT on the first £300,000 of a property costing no more than £500,000.
They then pay 5% on the portion between £300,001 and £500,000.
If the purchase price exceeds £500,000, First-Time Buyers' Relief isn't available.
Do I pay Stamp Duty when moving house?
Possibly. Being a home mover doesn't itself exempt you from SDLT.
If you're selling your existing main residence and replacing it with another, you'll normally pay the standard residential rates on the new purchase.
If you still own your old home when the new purchase completes, the higher rates may initially apply.
Is Stamp Duty different in Scotland and Wales?
Yes. Stamp Duty Land Tax applies to property purchases in England and Northern Ireland.
If you’re buying in Scotland, you may need to pay Land and Buildings Transaction Tax (LBTT). You can estimate this using the official Revenue Scotland LBTT calculator.
If you’re buying in Wales, you may need to pay Land Transaction Tax (LTT). You can estimate this using the official Welsh Revenue Authority LTT calculator.
The tax rates, thresholds and reliefs are different in each nation, so make sure you use the calculator that applies to where the property is located.
Planning a Home Purchase?
Stamp Duty is only one part of the cost of buying a property, but knowing what you're likely to need before you start can make the process much easier to plan.
At Delta Mortgages, we can help you understand how much you may be able to borrow, what your mortgage options could look like and how your deposit and other purchase costs fit into the overall budget.
Whether you're buying your first home, moving house or purchasing another property, speak to one of our mortgage advisers and we'll help you work through the mortgage side of your plans.
If you’re ready to take the next step, give us a call on 0303 0033 606 or drop us an email at humans@deltamortgages.co.uk for a free, no-obligation chat.
This article is for general information only and does not constitute personalised mortgage, financial, legal or tax advice. Stamp Duty rules can change and individual circumstances can affect the amount payable. You should confirm your SDLT liability with your solicitor, conveyancer or suitably qualified tax adviser before proceeding with a property transaction. Delta Mortgages is not responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
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