How UK Stamp Duty Works in 2026/27
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland costing more than £125,000. It works like income tax — you only pay the rate on the portion of the price within each band, not on the total price. Scotland and Wales have their own equivalents (LBTT and LTT respectively).
Current SDLT Rates
Standard Residential Rates (Moving Home)
| Band | Rate | Additional Property (+5%) |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
First-Time Buyer Rates
| Band | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
| Over £500,000 | Standard rates apply (no relief) |
Non-UK residents: an additional 2% surcharge applies on top of all rates.
The April 2025 Changes — Now the Established Rates
The rates above took effect on 1 April 2025, when the temporary higher thresholds introduced in September 2022 ended, and they remain the rates in force throughout the 2026/27 tax year. If you last bought before April 2025, the regime changed in three ways that are worth knowing about:
- The nil-rate band dropped from £250,000 back to £125,000 for standard buyers — most purchases between £125,000 and £250,000 now attract stamp duty where they previously didn't.
- The first-time buyer nil-rate band dropped from £425,000 to £300,000, and the maximum property price eligible for first-time buyer relief fell from £625,000 to £500,000.
- The surcharge for additional properties (second homes and buy-to-lets) is 5%, having increased from 3% in October 2024.
Worked Examples
Buying a £350,000 home (moving home)
First £125,000 at 0% = £0
Next £125,000 (£125k–£250k) at 2% = £2,500
Next £100,000 (£250k–£350k) at 5% = £5,000
Total SDLT = £7,500 (effective rate: 2.14%)
First-time buyer purchasing a £400,000 home
First £300,000 at 0% = £0
Next £100,000 (£300k–£400k) at 5% = £5,000
Total SDLT = £5,000 (effective rate: 1.25%)
Buying a £300,000 buy-to-let property
First £125,000 at 5% = £6,250
Next £125,000 (£125k–£250k) at 7% = £8,750
Next £50,000 (£250k–£300k) at 10% = £5,000
Total SDLT = £20,000 (effective rate: 6.67%)
Common Mistakes to Avoid
- Assuming the rate applies to the whole price. SDLT is banded — you only pay each rate on the portion within that band, not on the full purchase price.
- Forgetting the additional property surcharge. If you own any residential property worth £40,000+ anywhere in the world, the 5% surcharge kicks in — even inherited properties can count.
- Missing the 14-day deadline. You must file your SDLT return and pay within 14 days of completion. Late payment incurs penalties and interest.
- Not claiming the replacement residence refund. If you're buying a new main home before selling your old one, you'll pay the higher rate initially but can reclaim the 5% surcharge if you sell within 36 months.
Frequently Asked Questions
Do first-time buyers pay stamp duty?
Yes, but you benefit from a higher zero-rate threshold of £300,000. For properties between £300,001 and £500,000, you pay 5% on the portion above £300,000. If the property costs more than £500,000, first-time buyer relief is not available and you pay standard rates.
When do I need to pay stamp duty?
You must file an SDLT return and pay the tax within 14 days of completion. Your solicitor or conveyancer usually handles this as part of the buying process. Late payment can incur penalties and interest.
Does stamp duty apply in Scotland and Wales?
No — Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Both have different rates and thresholds. This calculator covers England and Northern Ireland only.
What counts as an 'additional property'?
If you own any other residential property worth £40,000+ anywhere in the world when you complete your purchase, the 5% surcharge applies. This includes buy-to-let investments and second homes. If you're replacing your main residence and sell the previous one within 36 months, you can claim a refund.
Have stamp duty rates changed for 2026/27?
No. The rates introduced on 1 April 2025 remain in force for the 2026/27 tax year: nil-rate threshold of £125,000, first-time buyer relief up to £300,000 (on homes up to £500,000), and the 5% additional property surcharge. This calculator always reflects the current rates.