UK Stamp Duty in 2026: Rates, Thresholds, and How to Calculate Your Bill

Published 2026-04-10 · Housing Calc Pro

Stamp Duty Land Tax (SDLT) is a significant cost in any property purchase across England and Northern Ireland. Understanding exactly how much you will pay — and whether any reliefs or exemptions apply to you — can save you thousands of pounds.

Current Stamp Duty Rates (2026)

Stamp duty is calculated on a tiered basis, meaning you only pay the higher rate on the portion of the price that falls within each band. For standard residential purchases (not first-time buyers or additional properties), the rates are: 0% on the first £250,000, 5% on the portion from £250,001 to £925,000, 10% on the portion from £925,001 to £1,500,000, and 12% on anything above £1,500,000.

First-Time Buyer Relief

First-time buyers benefit from a more generous threshold. You pay 0% on the first £425,000 and 5% on the portion from £425,001 to £625,000. If the property costs more than £625,000, you do not qualify for first-time buyer relief and pay the standard rates instead. For a first-time buyer purchasing a property at £400,000, the stamp duty bill is £0. For a property at £500,000, the stamp duty would be £3,750 (5% on the £75,000 above the £425,000 threshold).

Additional Property Surcharge

If you are buying a second home, buy-to-let property, or any additional residential property, you pay a 3% surcharge on top of the standard rates. This means the rates become 3% on the first £250,000, 8% on the portion from £250,001 to £925,000, 13% from £925,001 to £1,500,000, and 15% above £1,500,000. For a £300,000 buy-to-let purchase, the stamp duty would be £11,000 compared to just £2,500 at standard rates — a significant additional cost that must be factored into any investment calculation.

Exemptions and Reliefs

Several transactions are exempt from stamp duty entirely. Transfers of property following a divorce or dissolution of civil partnership incur no stamp duty. Properties left to you in a will are also exempt. If you buy a new main residence but have not yet sold your previous one, you pay the surcharge initially but can reclaim it if you sell the old property within 3 years.

How to Minimise Your Stamp Duty Bill

While stamp duty is largely unavoidable, there are legitimate strategies to reduce it. Negotiate the property price to just below a threshold — buying at £250,000 instead of £260,000 saves £500 in stamp duty alone plus the £10,000 price reduction. If buying with a partner who already owns property, consider whether the purchase could be structured to avoid the additional property surcharge (take professional legal advice on this). First-time buyers should be aware that the £425,000 zero-rate threshold applies per transaction, not per person — so a couple buying together still gets only one allowance.