Last reviewed and updated by Darren Shepherd: October 2026
In 2026, stamp duty in England and Northern Ireland starts at zero up to £125,000, then rises in bands to 12% over £1.5 million. First time buyers pay nothing up to £300,000. Buying a second home, or a buy to let when you already own a property, adds a 5% surcharge on top of the standard rates. I have sat across the table from hundreds of buyers over the years who worked out their deposit down to the last pound, then got a shock when the solicitor's completion statement showed a stamp duty bill they had not budgeted for. This guide is here so that never happens to you.
What is stamp duty, and who actually has to pay it
Stamp Duty Land Tax, SDLT, is a tax you pay to HMRC when you buy a residential property or land in England or Northern Ireland over a certain price. Scotland and Wales have their own versions, Land and Buildings Transaction Tax and Land Transaction Tax, with different bands, so this guide covers England and Northern Ireland only.
It is paid by the buyer, not the seller, and it is calculated on the price you actually pay for the property, not on the size of your mortgage or your deposit.
Stamp duty bands in 2026
For a single residential property, bought by someone who is not a first time buyer and does not already own another property, the standard rates are:
| Portion of price | 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% |
It works like income tax, in slices. You do not pay 5% on the whole price the moment you go past £250,000, you only pay 5% on the portion that falls into that band.
First time buyer relief in 2026
If you and anyone you are buying with have never owned a residential property anywhere in the world, you qualify for first time buyer relief:
- Up to £300,000, you pay no stamp duty at all.
- Between £300,001 and £500,000, you pay 5% on the portion above £300,000.
- Above £500,000, the relief disappears completely and you pay standard rates on the whole price.
This is the bit that catches people out. It is not tapered. A first time buyer paying £500,000 pays £10,000 in stamp duty. A first time buyer paying £510,000, just £10,000 more, loses the relief entirely and pays £15,500. That extra £10,000 on the purchase price has cost you an extra £5,500 in tax. If your offer is hovering near £500,000, it is worth knowing exactly where that line sits before you go back with a higher bid.
The second home and buy to let surcharge
If, at the end of the day you complete, you will own more than one residential property, an extra 5% surcharge applies on top of the standard rates, on the whole purchase price. This catches second homes, holiday homes, and buy to let purchases where you already own somewhere else.
One point that surprises people: the surcharge is about how many properties you will own, not about whether you will live there. A genuine first time buyer who buys a single buy to let and owns nothing else does not pay the surcharge. They do not get first time buyer relief either, because that relief is only for a home you intend to live in, so they pay the ordinary standard rates on the full price. Our stamp duty calculator now works this case out for you.
There is an important exception. If you are selling your existing main home and buying a new one, you normally will not pay the surcharge, provided the sale completes on or before the day you complete on the new purchase. If your sale is delayed and you complete on the new home first, you pay the surcharge upfront, then can claim it back if you sell your previous main home within 3 years. I have written a full breakdown of the second home surcharge, including how the refund claim actually works, in my separate guide to the additional property surcharge.
Buying from overseas
If you are not resident in the UK, meaning you have spent fewer than 183 days here in the 12 months before your purchase, a further 2% surcharge applies on top of everything else, including on top of the additional property surcharge if that also applies.
Worked examples
A first time buyer paying £280,000, no other property. The whole price falls under the £300,000 relief threshold, so the SDLT bill is £0.
A home mover paying £400,000, selling their previous home at the same time, no other property. £0 on the first £125,000, 2% on the next £125,000 (£2,500), 5% on the remaining £150,000 (£7,500). Total: £10,000.
A buyer paying £350,000 for a second home or buy to let. Standard SDLT on £350,000 works out at £7,500, then add the 5% surcharge on the full £350,000 (£17,500). Total: £25,000.
When and how you actually pay it
SDLT is due within 14 days of completion. In practice, you will rarely have to think about this yourself. Your solicitor or conveyancer files the SDLT return and pays HMRC directly out of the funds you have sent them ahead of completion, then it appears as a line on your completion statement. Make sure the figure they quote you matches what you have calculated, mistakes do happen, particularly around the surcharge rules.
Does stamp duty affect your mortgage
Stamp duty is not something you can add to your mortgage. Lenders assess how much they will lend against the purchase price of the property itself, not the tax sitting on top of it. You need to have the SDLT amount available in cash, alongside your deposit, legal fees and any other moving costs. This is one of the most common budgeting mistakes I see, buyers who have their deposit sorted but have not set aside the stamp duty separately. Use the stamp duty calculator early in your search, not after you have found the house, so there are no surprises.
Stamp duty at a glance, 2026
Working out your own figure
Every buyer's situation is slightly different, particularly once you factor in whether you are a first time buyer, whether you already own another property, and whether you are buying with someone else. Rather than trying to do the sums in your head, the Darren Talks stamp duty calculator works it out instantly using the exact 2026 bands in this guide.
Stamp duty is one of those costs that is entirely predictable and entirely avoidable to budget around, provided you check it before you fall in love with a house rather than after. Know your band, know whether the surcharge applies to you, and build the figure into your budget from day one alongside your deposit.
General information, not financial or tax advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources: GOV.UK, SDLT residential property rates, GOV.UK, buying an additional residential property, GOV.UK, first time buyers' relief.
Stage 1, Working out what you can afford
Stamp duty belongs in your budget from the very start, alongside your deposit and other buying costs.
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