How stamp duty works
Stamp Duty Land Tax is a tax you pay when you buy a home or land in England or Northern Ireland above a certain price. It's worked out in bands, a bit like income tax, so you only pay each rate on the slice of the price that falls within that band, not on the whole amount.
Stamp duty rates in 2026 (standard)
These are the standard rates if you're replacing your main home (i.e. you've owned before and won't end up owning two properties):
| 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% |
First-time buyer relief
If you (and anyone you're buying with) have never owned a home before, and you'll live in the property as your main home, you get a discount: no stamp duty on the first £300,000, then 5% on the portion between £300,000 and £500,000. If the property costs more than £500,000, the relief doesn't apply and you pay the standard rates above. Our first-time buyer guide walks through the whole journey.
Second homes and buy-to-let
Buying an additional property that isn't replacing your main home? You pay a 5% surcharge on top of the standard rates, across every band. That makes a big difference, so it's worth factoring in early, our buy-to-let guide covers the wider costs.
Buying a buy-to-let as a first-time buyer?
Two things work differently for you, and most calculators get at least one of them wrong. First, first-time buyer relief never applies to a buy-to-let. HMRC only gives the relief on a property you intend to live in as your only or main home, so ticking "first-time buyer" on its own is not enough. Second, if this genuinely is the only property that you, anyone buying with you, or your spouse or civil partner will own, you will not pay the 5% additional property surcharge either. The surcharge is about owning more than one property, not about renting one out.
So a true first-time buyer and first-time landlord, buying one buy-to-let and nothing else, typically pays the ordinary stamp duty rates on the full price: no relief, but no surcharge. On a £250,000 property that is £2,500. If one of you already owned another property, the surcharge would apply and the same purchase would cost £15,000. The calculator above handles all three outcomes, which is why it asks whether you will live in the property and how many properties you will own afterwards, rather than just "are you a first-time buyer".
What the calculator does not cover
It assumes everyone buying is a UK resident (non-UK residents pay a further 2% on top of whatever else applies), that you are buying as individuals rather than through a company (companies always pay the surcharge), and that any other property you own counts, which HMRC only does if it is worth £40,000 or more. Scotland and Wales have their own property taxes with different rates and rules. For anything unusual, use HMRC's own calculator or speak to a solicitor or tax adviser.
When (and how) do you pay it?
You have to file a return and pay within 14 days of completion. In practice your conveyancing solicitor sorts the payment on completion day. Note you generally can't add stamp duty to your mortgage, you need the cash ready, so build it into your overall buying budget.
Not sure how it fits with your deposit and the rest of your costs? Have a no-pressure chat with Debbie at DS Financial, book a free 15-minute call ↗.
General information, not financial or tax advice. Rates correct for England & Northern Ireland at the time of writing (September 2026). Last reviewed and updated by Darren Shepherd: September 2026.
Sources: GOV.UK, SDLT residential rates, GOV.UK, higher rates for additional properties, HMRC SDLT manual, first-time buyers' relief, MoneyHelper.