Stamp Duty on a House in 2026: Bands, First-Time Buyers and Second Homes

Which UK property tax does this guide cover?

This guide and calculator cover Stamp Duty Land Tax (SDLT) on residential purchases in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT), while Wales uses Land Transaction Tax (LTT). Their thresholds and reliefs are different, so using an SDLT calculator for a property in Scotland or Wales can give the wrong result.

How stamp duty bands work

Stamp duty is progressive. You do not pay the highest rate on the whole price. Instead, each rate applies only to the slice of the purchase price that falls inside its band. For a standard residential purchase from 1 April 2025, the first £125,000 is charged at 0%, the next £125,000 at 2%, then the next portion up to £925,000 at 5%.

For example, a £350,000 main-home purchase is calculated as:

That is why a “5% stamp duty” headline can be misleading: only part of this price reaches the 5% band.

First-time buyer stamp duty relief

Eligible first-time buyers buying a home to live in can pay 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000. The purchase price must be no more than £500,000. If the price is above £500,000, the relief does not apply at all and standard rates are used for the whole purchase.

On a £400,000 qualifying first home, the estimated tax is £5,000: 0% on £300,000 and 5% on the remaining £100,000. The equivalent standard-rate calculation is £10,000, so the relief saves £5,000 in this example.

Stamp duty on a second home or buy-to-let

Purchases that leave you owning more than one residential property can attract higher SDLT rates. From 1 April 2025, the higher rates are generally 5 percentage points above the standard residential rates: 5%, 7%, 10%, 15% and 17% across the usual bands. This can materially change the cash needed to complete a buy-to-let or second-home purchase.

For a £350,000 additional property, the simplified higher-rate estimate is £25,000. That is £17,500 more than the £7,500 standard-rate estimate. The rules include important exceptions, particularly when replacing a main residence and later selling the previous one, so use the calculator as a planning figure—not a legal determination.

Non-UK resident surcharge

A 2% SDLT surcharge can apply to non-UK resident residential purchases, on top of the normal rate and, where relevant, the higher additional-property rate. SDLT residency has its own test; it is not always the same as tax residence for other purposes. HMRC’s guidance should be checked before relying on a calculation.

Questions to ask before making an offer

1. Is the property in England or Northern Ireland, rather than Scotland or Wales?
2. Will every buyer qualify as a first-time buyer, and will the property be their main home?
3. Will the purchase leave any buyer owning another residential property?
4. Are you replacing a main residence and might a surcharge refund apply later?
5. Could non-UK-resident rules, a company purchase, a lease, shared ownership or mixed use apply?

These questions matter because a single detail can change the applicable SDLT treatment. Your conveyancer should confirm the final return and tax amount.

Plan the full upfront budget

Stamp duty sits alongside the deposit, legal fees, valuation costs, surveys, removals and any lender fees. Build a cash-to-complete figure early so the deposit is not treated as the whole cost of buying. Use the calculator with the price you are considering, then add a buffer for costs it does not cover.

This guide is educational information, not tax or legal advice. SDLT rules and thresholds can change, and individual circumstances matter.

Related calculators