Stamp Duty in 2026: Rates, First-Time Buyer Relief and Worked Examples

Stamp Duty Land Tax (SDLT) is often the largest single upfront cost of buying a home in England or Northern Ireland — after the deposit itself. Yet the way it's calculated is genuinely straightforward once you break it into bands. This guide covers the 2026 rates in full, with worked examples for movers, first-time buyers and buy-to-let purchases. To try your own numbers, use our stamp duty calculator.

How SDLT actually works

SDLT is a slice tax: only the portion of the price that falls into each band is taxed at that band's rate. This trips up buyers who assume a £260,000 house is taxed entirely at 2% — it isn't. The first £125,000 is taxed at 0%, the next £125,000 at 2%, and only the final £10,000 at 5%.

The 2026 standard bands (mover / replacing main home)

• 0% on the portion up to £125,000
• 2% on £125,001 to £250,000
• 5% on £250,001 to £925,000
• 10% on £925,001 to £1,500,000
• 12% above £1,500,000

Worked example: a £350,000 home for someone selling their existing main residence. - First £125,000 × 0% = £0 - Next £125,000 × 2% = £2,500 - Final £100,000 × 5% = £5,000 - Total: £7,500

First-time buyer relief

If you're purchasing your first ever home — anywhere in the world, jointly or alone — and the price is £500,000 or less, you get a special banding:

• 0% on the portion up to £300,000
• 5% on £300,001 to £500,000
• No relief at all above £500,000 (you pay standard rates on the full price)

Same £350,000 property as a first-time buyer: - First £300,000 × 0% = £0 - Final £50,000 × 5% = £2,500 - Total: £2,500 — a £5,000 saving.

If your first home costs £510,000, the relief disappears entirely. You pay standard-rate SDLT on the whole price, which is why some buyers strategically stay just under £500,000.

The additional property surcharge

Buying a second home, holiday let, or buy-to-let? You pay a 5% surcharge on top of the standard rate for every band, applied to the whole price.

Same £350,000 property as an additional property: - Standard SDLT: £7,500 (as calculated above) - Surcharge: 5% × £350,000 = £17,500 - Total: £25,000

The surcharge only applies where you'll end up owning more than one property at completion. If you're buying a new home and haven't yet sold your old one, the surcharge is initially due but refundable if you complete the sale within three years.

A larger worked example: £600,000 buy-to-let purchase

Higher-value additional-property purchases show how quickly the surcharge adds up.

• First £125,000 × 0% = £0
• Next £125,000 × 2% = £2,500
• Remaining £350,000 (to £600,000) × 5% = £17,500
• Standard SDLT subtotal: £20,000
• Surcharge: 5% × £600,000 = £30,000
• Total SDLT: £50,000

The cliff-edge effect at £250,000

Because SDLT jumps from 2% to 5% at £250,000, buyers negotiating around this threshold can save thousands. A £250,000 purchase costs £2,500 in SDLT; £260,000 costs £3,000. But £275,000 costs £3,750 — a £1,250 SDLT hit for £15,000 more property. It's worth checking whether a small reduction can move you into a cheaper band.

When SDLT is payable

SDLT must be paid within 14 days of completion. Almost always your solicitor files the return and takes the money from completion funds — you'll just see it on the completion statement.

Budgeting checklist for completion day

• Stamp Duty Land Tax — calculated on the bands above, or the first-time buyer/surcharge variants.
• Solicitor and conveyancing fees — typically fixed or hourly, quoted upfront.
• Survey costs — optional but strongly recommended for older properties.
• Mortgage arrangement fee — sometimes added to the loan rather than paid upfront.
• Removal costs — easy to forget until the last fortnight.

Once you know your SDLT figure, it's worth checking affordability against your actual monthly repayments using the mortgage repayment calculator.

Comparison with Scotland and Wales

• Scotland uses Land and Buildings Transaction Tax (LBTT), with a nil-rate band up to £145,000 (£175,000 for first-time buyers) and higher bands rising to 12%.
• Wales uses Land Transaction Tax (LTT), with a nil-rate band up to £225,000 and no first-time buyer relief.

Both have their own additional-dwelling surcharges. Our calculator covers England and Northern Ireland only.

Non-residential and mixed use

Commercial property has a different band structure with lower top rates. Mixed-use property (a shop with a flat above, for example) is taxed at the non-residential rates, which can occasionally deliver a big saving compared to a purely residential classification — a topic that has generated a lot of tax tribunal cases.

Try your numbers

Every SDLT calculation obeys these rules mechanically. Plug your price and situation into the stamp duty calculator and you'll see the tax at each band. If you're comparing take-home pay to work out your mortgage affordability, our take-home pay calculator is the natural companion.