Stamp duty explained: how much you'll pay in 2026

Updated August 2026

Stamp duty land tax (SDLT) is the tax you pay when buying property or land in England and Northern Ireland above a certain price. It's a cost that catches some buyers off guard, especially when buying a second property. The rates changed in April 2025 when temporary relief ended, so older guides with different thresholds are out of date. Here's exactly what you'll pay in 2026/27.

Standard SDLT rates for 2026/27

These rates apply to anyone buying a residential property in England or Northern Ireland who already owns a home (or has owned one before and isn't a first-time buyer):

£0 to £250,000: 0% (no tax)
£250,001 to £925,000: 5%
£925,001 to £1,500,000: 10%
Above £1,500,000: 12%

SDLT works like income tax bands. You only pay the higher rate on the portion above each threshold. So if you buy a £400,000 property, you don't pay 5% on the whole amount. You pay 0% on the first £250,000 and 5% on the remaining £150,000. Your total bill: £7,500.

First-time buyer rates

If you've never owned a property anywhere in the world, you get a generous relief. The rates for first-time buyers are:

£0 to £425,000: 0% (no tax)
£425,001 to £625,000: 5%

There's a hard cut-off at £625,000. If your property costs more than this, you lose first-time buyer relief entirely and pay standard rates on the whole purchase. There's no taper or partial relief. At £624,999 you get the full benefit. At £626,000 you get nothing.

For joint purchases, both buyers must be first-time buyers to qualify. If one of you owned a flat 15 years ago, even if you sold it at a loss, neither of you qualifies for the relief on this purchase.

Additional property surcharge

Buying a second home, a holiday let, or a buy-to-let investment property? You pay an extra 5% surcharge on the entire purchase price, on top of the standard rates. This surcharge was increased from 3% to 5% in October 2024.

The surcharge applies to each band, so the effective rates for additional properties are:

£0 to £250,000: 5% (0% + 5% surcharge)
£250,001 to £925,000: 10% (5% + 5% surcharge)
£925,001 to £1,500,000: 15% (10% + 5% surcharge)
Above £1,500,000: 17% (12% + 5% surcharge)

This makes buying additional properties substantially more expensive. And the surcharge applies from the very first pound, not just the amount above £250,000. There's no zero-rate band for additional properties.

Non-UK resident surcharge

If you're not a UK resident (defined as not spending 183 days or more in the UK in the 12 months before purchase), you pay an extra 2% on top of everything else. This stacks with the additional property surcharge if applicable. So a non-UK resident buying a second property in England pays the standard rate plus 5% plus 2%, giving effective rates starting at 7% on the first £250,000.

You can reclaim the 2% surcharge if you become UK resident within 12 months of the purchase. But you need to apply to HMRC for a refund within a specific window.

Worked examples

Let's run through some common scenarios with exact figures.

A £250,000 first home: SDLT = £0. The entire amount falls within the first-time buyer nil-rate band of £425,000. You pay nothing.

A £350,000 first home: SDLT = £0. Still entirely within the £425,000 nil-rate band for first-time buyers.

A £500,000 first home: SDLT = £3,750. The first £425,000 is tax-free. You pay 5% on the remaining £75,000. That's £75,000 x 0.05 = £3,750.

A £300,000 purchase (standard buyer, not first-time): SDLT = £2,500. The first £250,000 is tax-free. You pay 5% on the remaining £50,000. That's £50,000 x 0.05 = £2,500.

A £500,000 purchase (standard buyer): SDLT = £12,500. First £250,000 at 0% = £0. Next £250,000 at 5% = £12,500. Total: £12,500.

A £300,000 second home: SDLT = £17,500. Here's how it breaks down with the 5% surcharge applied to every band. First £250,000 at 5% (0% standard + 5% surcharge) = £12,500. Next £50,000 at 10% (5% standard + 5% surcharge) = £5,000. Total: £17,500. Compare that to the £2,500 a standard buyer pays on the same £300,000 property. The surcharge adds £15,000.

A £750,000 purchase (standard buyer): SDLT = £25,000. First £250,000 at 0% = £0. Next £500,000 at 5% = £25,000. Total: £25,000.

When you pay and how

Your solicitor handles the SDLT payment as part of the conveyancing process. They submit the return to HMRC and pay the tax from the completion funds. You don't need to do anything yourself, but you do need to have the money available on completion day.

SDLT must be paid within 14 days of completion. Late payment triggers interest charges and penalties. Since your solicitor manages this, it's rarely an issue for individual buyers. But it means you need to factor stamp duty into your total purchase funds alongside the deposit, solicitor fees, and survey costs.

You can use our stamp duty calculator to work out exactly what you'll owe on any property price, whether you're a first-time buyer, standard buyer, or purchasing an additional property.

Reclaiming the surcharge

If you buy a new main home before selling your old one, you'll pay the 5% additional property surcharge because you technically own two properties at the point of purchase. But you can claim a refund if you sell your previous main residence within 3 years of buying the new one.

The refund claim must be made within 12 months of the sale of the old property (or 12 months after the filing date of the SDLT return, whichever is later). You apply to HMRC directly. The refund typically takes 4 to 6 weeks to process.

On a £400,000 property, that surcharge refund is worth £20,000. It's not small change. If you're in a chain and buying before selling, make sure you know about this. Your solicitor should flag it, but not all do.

Scotland and Wales have different taxes

SDLT only applies in England and Northern Ireland. Scotland has its own system called Land and Buildings Transaction Tax (LBTT), and Wales charges Land Transaction Tax (LTT). The bands, rates, and thresholds are all different.

In Scotland, the nil-rate band is £145,000 for standard buyers (much lower than England's £250,000). Scotland's additional dwelling supplement is 6%. First-time buyer relief in Scotland covers properties up to £175,000.

In Wales, the nil-rate band sits at £225,000. The higher residential rate surcharge is 4% for additional properties. Wales doesn't have a specific first-time buyer relief.

If you're buying in Scotland or Wales, these English SDLT figures don't apply to you. Check the Revenue Scotland or Welsh Revenue Authority websites for current rates in your nation.

Planning around stamp duty

For first-time buyers, the £425,000 threshold means most purchases outside London are stamp duty free. If you're looking at properties around that price point, staying below £425,000 saves you real money. A property at £500,000 costs £3,750, and at £625,000 you'd pay £10,000.

For those buying additional properties, the 5% surcharge makes the sums eye-watering. A £200,000 buy-to-let costs £10,000 in stamp duty alone. At typical rental yields of 5% to 6%, it takes about a year just to cover the tax.

If you're replacing your main home and worried about paying the surcharge temporarily, try to align your sale and purchase dates. Completing on the same day means you never own two properties simultaneously and you avoid the surcharge entirely. Your solicitor can coordinate this, though it adds complexity to the transaction.

This is a general guide, not financial advice. For personalised mortgage recommendations, speak to an FCA-regulated mortgage adviser.