Budget & housing
Stamp Duty Explained: How Much You'll Pay
What Stamp Duty Land Tax is, who pays it, how the band system works, and how to budget for it when buying a home in England or Northern Ireland.
Updated July 2026 · 8 min read
General information only — not financial, legal or tax advice. Rates and rules change; check GOV.UK or official resources before making decisions.
Key takeaways
- Stamp Duty Land Tax (SDLT) is a tax on buying property or land in England and Northern Ireland — Scotland and Wales use different systems.
- You pay different rates on different slices of the price (bands), not one flat rate on the whole purchase.
- First-time buyers often pay less or nothing up to £300,000 on homes priced up to £500,000; second homes usually face a 5% surcharge.
- SDLT is normally due within 14 days of completion and is often one of the largest cash costs after your deposit.
- Use our Stamp Duty Calculator before you make an offer so the tax is in your budget, not a surprise at completion.
What is stamp duty?
Stamp Duty Land Tax — usually just called stamp duty — is a tax you pay when you buy a residential property or land above certain price thresholds in England and Northern Ireland. It is separate from your deposit, mortgage and conveyancing fees.
Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT). Those systems look similar but use different thresholds, so do not use England figures if you are buying elsewhere.
Who pays stamp duty and when?
The buyer pays SDLT, not the seller. Your solicitor or conveyancer usually files the return with HMRC and pays the tax from money you transfer before or at completion. The deadline is normally 14 days after completion.
You still need to budget for it even if you are borrowing most of the purchase price. Some lenders allow a little extra borrowing for stamp duty, but that raises your loan-to-value and monthly repayments — and not every lender offers it.
How do stamp duty bands work?
SDLT is charged in slices. You pay 0% on the portion of the price in the lowest band, then higher rates only on the portion that falls into each higher band. That is why a £300,000 home is not taxed at a single 5% rate on the whole amount.
For most home movers who have owned property before, the current England and Northern Ireland bands start with 0% up to £125,000, then 2%, 5%, 10% and 12% on higher slices. Our Stamp Duty 2026 guide lists the full table and worked price examples.
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5m | 12% |
Do first-time buyers pay stamp duty?
Often less than movers — and sometimes nothing. If you have never owned a residential property anywhere in the world, and the purchase price is £500,000 or less, first-time buyer relief usually means 0% on the first £300,000 and 5% only on the slice from £300,001 to £500,000.
Cross £500,000 and relief disappears completely: standard rates apply to the entire price. That cliff edge matters in expensive cities — a £510,000 first home can cost far more in SDLT than a £490,000 one.
What about second homes and buy-to-let?
If you already own another dwelling and are not replacing your main residence, purchases of £40,000 or more usually attract a 5 percentage point surcharge on each band. That can roughly triple or quadruple the tax versus a standard mover at the same price.
Married couples and civil partners are generally treated as one unit for this rule. If either of you already owns a home, check carefully before assuming first-time or main-residence treatment will apply.
How stamp duty fits into your buying budget
Treat SDLT as a cash cost alongside your deposit, survey, searches, legal fees and moving costs. On a £350,000 purchase, a standard mover might owe about £7,500 in stamp duty — money that has to be available at completion, not just on paper.
Before you view homes, run the Stamp Duty Calculator for the price bracket you can afford, then check borrowing power with the Mortgage Affordability Calculator and monthly cost with the Mortgage Repayment Calculator. That trio shows tax, loan size and repayment together.
Common stamp duty mistakes to avoid
Assuming every first-time buyer pays nothing, forgetting the £500,000 relief limit, or ignoring the surcharge when you still own a share of a previous home. Another frequent miss: budgeting only for the deposit and discovering SDLT late in the conveyancing process.
Also check whether any shared ownership, multiple dwellings or company purchase rules apply — those can change the calculation. When in doubt, ask your conveyancer early and confirm figures against GOV.UK.
- Do not ignore the £500,000 first-time buyer cliff.
- Budget SDLT as cash, not as part of the deposit myth.
- Confirm surcharge rules if you still own any property.
- Scotland and Wales need different calculators and advice.
Work out your stamp duty before you offer
Use our Stamp Duty Calculator to compare standard, first-time and additional-property bills at any price. For current thresholds and more examples, see Stamp Duty 2026: What Buyers Pay Now. Estimates only — your solicitor confirms the amount due on your actual transaction.
Frequently asked questions
- What is stamp duty in the UK?
- Stamp Duty Land Tax (SDLT) is a tax on buying property or land in England and Northern Ireland. Scotland and Wales use separate taxes (LBTT and LTT). The buyer usually pays it within 14 days of completion.
- How is stamp duty calculated?
- It is charged in bands: different rates apply to different portions of the purchase price. Your buyer type — standard, first-time or additional property — changes which rates apply.
- Do first-time buyers always pay no stamp duty?
- No. Relief usually means nothing on the first £300,000 if the home costs £500,000 or less, then 5% on the next slice up to £500,000. Above £500,000, first-time relief is lost and standard rates apply to the whole price.
- When do I have to pay stamp duty?
- Normally within 14 days of completion. Your conveyancer typically files the SDLT return and pays HMRC from funds you provide as part of the completion money.
- Is stamp duty the same as land tax in Scotland or Wales?
- No. Scotland uses LBTT and Wales uses LTT, each with its own thresholds and rates. This guide and our calculator cover SDLT for England and Northern Ireland only.
- Can stamp duty be added to my mortgage?
- Some lenders let you borrow a little extra to cover it, but that increases your loan and monthly payments and may worsen your loan-to-value. Many buyers pay SDLT from savings instead.
Try the calculator
Put this into numbers with our free UK calculators.
Need free help? See our useful UK resources including MoneyHelper and StepChange.