How Is Stamp Duty Calculated in England?
Last updated: April 2026
Stamp duty is calculated in bands — you pay different rates on different portions of the purchase price, not a flat rate on the whole amount. In England, you pay 0% on the first £125,000, 2% on the next £125,000, 5% on the portion above £250,000 up to £925,000, and higher rates above that. First-time buyers pay 0% up to £300,000. On a £400,000 property, a standard buyer pays £10,000.
Important: First-time buyer threshold changed on 1 April 2025
The first-time buyer stamp duty relief limit is now £300,000 (down from the temporary £425,000). Relief applies on properties up to £500,000 (previously £625,000). If you are buying above £300,000 as a first-time buyer, you will now pay stamp duty on the portion above £300,000.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland. It applies to both freehold and leasehold properties above a certain price threshold.
The tax is paid to HMRC, usually through your solicitor or conveyancer, within 14 days of completion.
2026 Stamp Duty Bands
Stamp Duty works like Income Tax — you pay different rates on different "bands" of the purchase price:
| Property Price Band | Rate |
|---|---|
| Up to £125,000 | 0% |
| Above £125,000 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
This means you only pay the higher rate on the portion of the price within each band — not on the entire purchase price.
Residential purchase estimate. Uses rates checked on 2 October 2026, without historical contract protection. Future purchases assume these published rates continue.
One dwelling bought by an individual, with the correct buyer category already established. Where first-time buyer relief is offered, it assumes every buyer meets the ownership and main-home conditions. Replacing a main residence can avoid additional-property rates even if you own other property.
Excludes linked transactions, companies/trusts, mixed or non-residential use, lease rent, shared ownership, other reliefs and the non-UK-resident SDLT surcharge. Confirm these cases and any refund conditions with your conveyancer.
How Stamp Duty Is Calculated Step by Step
- 1Take your property purchase price
- 2Apply 0% to the first £125,000
- 3Apply 2% to £125,000–£250,000, then 5% to the portion above £250,000 up to £925,000
- 4Apply 10% to the next portion up to £1,500,000
- 5Apply 12% to anything above £1,500,000
- 6Add all amounts together for your total Stamp Duty
Stamp Duty for First-Time Buyers (2026)
First-time buyers benefit from relief on their first property purchase. From 1 April 2025, the thresholds reverted to their permanent levels:
- No Stamp Duty on properties up to £300,000
- 5% rate only on the portion between £300,001 and £500,000
- No relief on properties over £500,000 — standard rates apply
To qualify, every buyer must satisfy the first-time ownership conditions, and the property must be intended as your main residence. The temporary £425,000 threshold that applied from September 2022 to March 2025 is no longer available.
Stamp Duty for Second Homes & Buy-to-Let
For an ordinary qualifying additional purchase of £40,000 or more, you pay 5 percentage points above standard rates on top of standard rates. This applies to:
- • Second homes and holiday homes
- • Buy-to-let investment properties
- • Main-home purchases completed before selling the old main home, subject to replacement and refund rules
The surcharge applies from the first pound — so even the 0% band becomes 5%. This significantly increases your costs on additional property purchases.
2026 Stamp Duty Worked Examples
Standard buyer — £400,000 property
First-time buyer — £350,000 property
Under the new £300,000 threshold, a first-time buyer purchasing at £350,000 now pays stamp duty on the portion above £300,000:
Note: Under the old temporary threshold (before April 2025), this buyer would have paid £0. The threshold change means first-time buyers purchasing between £300,000 and £425,000 now face a stamp duty bill they previously avoided.
Additional property buyer — £400,000 property
Additional property buyers pay a 5% surcharge on top of standard rates from the first pound:
That's £20,000 more than a standard buyer pays on the same property, due to the 5% additional property surcharge applied from the first pound.
Estimate ordinary residential stamp duty for your property price and confirmed buyer category.
Calculate your stamp duty →Common Mistakes People Make
Thinking one rate applies to the whole price
Stamp Duty is tiered — you don't pay 5% on the entire £400,000, only on the portion above £250,000.
Using the old £425,000 first-time buyer threshold
The temporary £425,000 threshold expired on 31 March 2025. The current nil-rate band for first-time buyers is £300,000.
Forgetting the additional property surcharge
Even if you plan to sell your current home, you may pay the surcharge if you complete before selling.
Missing the 14-day payment deadline
Late payment attracts interest and penalties. Ensure your solicitor submits on time.
Using rates for Scotland or Wales
Scotland (LBTT) and Wales (LTT) have different tax systems. SDLT only applies in England and Northern Ireland.
Frequently Asked Questions
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