If you are buying a property in England or Northern Ireland in 2026, Stamp Duty Land Tax (SDLT) is one of the largest upfront costs you will face. For many buyers, it runs into thousands or even tens of thousands of pounds, and unlike the deposit, it is money you will never get back. Understanding how it works, what you will pay, and whether you qualify for any relief is essential for planning your purchase.
The stamp duty landscape changed significantly in April 2025, when the temporary higher thresholds introduced during the pandemic era finally expired. This means many buyers are now paying more than they would have a year ago. Here is the complete picture for 2026.
Standard SDLT Rates in 2026
Stamp Duty is charged on the portion of the property price that falls within each band, similar to how income tax works. The current rates for residential property purchases (applicable from 1 April 2025) are:
- Up to £125,000: 0%
- £125,001 to £250,000: 2%
- £250,001 to £925,000: 5%
- £925,001 to £1,500,000: 10%
- Above £1,500,000: 12%
These are the pre-September 2022 rates, restored after the temporary thresholds expired. The nil-rate band has returned to £125,000, down from £250,000 during the temporary period. This means buyers of properties between £125,000 and £250,000 now pay £2,500 more in stamp duty than they would have before April 2025.
Use our stamp duty calculator to get an instant, accurate calculation for any property price. It accounts for all the rates, bands, and special rules described below.
First-Time Buyer Relief
First-time buyers continue to benefit from a more generous SDLT structure, though the thresholds have also been reduced from the temporary levels:
- Up to £300,000: 0% (no stamp duty)
- £300,001 to £500,000: 5%
If the property price exceeds £500,000, first-time buyer relief is not available and you pay the standard rates. The first-time buyer threshold was temporarily raised to £425,000 during 2022–2025, so its return to £300,000 has been a particular blow for buyers in London and the South East, where average property prices easily exceed that level.
To qualify as a first-time buyer, you must never have owned a property or a share of a property anywhere in the world. Both purchasers must be first-time buyers if buying jointly. If one partner has previously owned property and the other has not, first-time buyer relief is not available.
Additional Properties: The 5% Surcharge
If you are buying a second home, a buy-to-let property, or any additional residential property, you pay a surcharge on top of the standard rates. From October 2024, this surcharge increased from 3% to 5%, making it one of the most significant increases in recent stamp duty history.
The 5% surcharge applies to each band, so the effective rates for additional properties are:
- Up to £125,000: 5% (instead of 0%)
- £125,001 to £250,000: 7% (instead of 2%)
- £250,001 to £925,000: 10% (instead of 5%)
- £925,001 to £1,500,000: 15% (instead of 10%)
- Above £1,500,000: 17% (instead of 12%)
On a £300,000 buy-to-let purchase, the stamp duty bill is £17,500 (including the surcharge), compared to £2,500 for a main residence. That is a £15,000 difference, which significantly affects the investment case for buy-to-let properties. Our stamp duty calculator has an option specifically for additional property purchases.
Replacement of Main Residence
There is an important exception to the additional property surcharge. If you are buying a new main residence but have not yet sold your existing one, you will initially pay the higher rates. However, if you sell your previous main residence within 36 months of buying the new one, you can claim a refund of the surcharge from HMRC.
This is designed to avoid penalising people who are in a chain or who need to move before selling. The refund is not automatic — you need to apply to HMRC within 12 months of the sale of your previous home (or within 12 months of the filing date for the SDLT return, whichever is later). Many people miss this deadline and lose out on refunds of thousands of pounds.
How Stamp Duty Fits into Your Total Purchase Costs
SDLT is just one of several upfront costs when buying a property. A comprehensive budget should include:
- Deposit: Typically 5–20% of the purchase price
- Stamp Duty: As calculated above
- Legal fees: £1,000–£2,500 for conveyancing
- Survey costs: £400–£1,500 depending on the type of survey
- Mortgage arrangement fees: £0–£2,000 depending on the product
- Moving costs: £500–£2,000
On a £350,000 property (a fairly typical price for many parts of England), a first-time buyer would pay £2,500 in SDLT, while a home mover would pay £7,500. When you add the other costs, you are looking at £5,000 to £15,000 in total transaction costs beyond the deposit.
Our mortgage calculator helps you understand the ongoing monthly costs once you have completed, and the stamp duty calculator gives you the exact upfront SDLT bill. Together, they give you a realistic picture of what buying a home actually costs.
Planning Tips to Minimise Your Stamp Duty Bill
While there is limited scope to avoid SDLT entirely (it is a transaction tax on the purchase price), there are some legitimate planning considerations:
- Negotiate the purchase price: Every pound reduction in the price reduces your SDLT bill. If you are near a band threshold, even a small reduction can save a meaningful amount
- Separate fixtures and fittings: Items like curtains, carpets, and freestanding appliances are not subject to SDLT. If the seller is including these, they can be listed separately in the contract, reducing the SDLT-liable amount. The valuation must be genuine and reasonable
- First-time buyer planning: If you are buying with a partner who has previously owned property, consider whether it makes financial sense (and is legally appropriate) for the first-time buyer to purchase alone to benefit from the relief
- Timing: If you are buying an additional property and plan to sell your existing one soon after, ensure you track the 36-month window for the surcharge refund
Stamp duty is an unavoidable part of buying property in England and Northern Ireland, but understanding the rules ensures you pay exactly what you owe and nothing more. Run your numbers through our stamp duty calculator and our loan repayment calculator for a complete financial picture before making an offer.