Stamp Duty Calculator 2025/26

How Stamp Duty Land Tax Works

Stamp Duty Land Tax (SDLT) is a tax you pay when purchasing residential property or land in England and Northern Ireland. The tax is calculated on a progressive basis, meaning different portions of the property price are taxed at different rates — similar to income tax. You only pay the higher rate on the portion of the purchase price that falls within each band, not on the entire price.

For example, if you purchase a property for £300,000 as a home mover, you pay nothing on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the remaining £50,000 (£2,500), giving a total SDLT bill of £5,000. Many people mistakenly believe the highest rate applies to the entire purchase price, which would significantly overestimate the tax.

SDLT applies to freehold purchases, new or existing leasehold purchases, transfers of land or property in exchange for payment, and shared ownership purchases. It does not apply to properties in Scotland (which uses LBTT) or Wales (which uses LTT).

SDLT Rates for 2025/26

From 1 April 2025, the temporary SDLT thresholds that had been in place since September 2022 were reversed. The current rates for residential property purchases in England and Northern Ireland are:

Standard Rates (Home Movers)

First-Time Buyer Rates

First-time buyer relief is only available on properties costing £500,000 or less. If the purchase price exceeds £500,000, the buyer must pay the standard rates with no relief applied. There is no partial relief.

Additional Property Surcharge

Buyers purchasing an additional residential property (such as a second home, holiday home, or buy-to-let property) pay a 5% surcharge on top of the standard rates on every band. This surcharge increased from 3% to 5% on 31 October 2024. The surcharge applies even on the portion of the price that would normally be at 0%, meaning additional property buyers pay stamp duty from the very first pound.

Non-UK Resident Surcharge

Non-UK residents purchasing residential property in England or Northern Ireland pay an additional 2% surcharge on top of all other applicable rates. This surcharge applies in addition to the additional property surcharge if both apply. A buyer is considered a non-UK resident if they have not been resident in the UK for at least 183 days in the 12 months before the purchase.

What Changed in April 2025

The most significant changes to stamp duty in April 2025 were the reversal of the temporary threshold increases that had been in place since September 2022. Here is a comparison of the key thresholds:

These changes had a significant impact on stamp duty bills. For example, a home mover purchasing a £300,000 property now pays £5,000 in SDLT, compared to £2,500 before April 2025. A first-time buyer purchasing a £450,000 property now pays £7,500, whereas they previously paid £1,250.

Additionally, the additional property surcharge had already increased from 3% to 5% in October 2024, further raising costs for buy-to-let and second home purchases.

Worked Examples

Example 1: First-Time Buyer at £250,000

A first-time buyer purchasing a property for £250,000 in England:

• Property price: £250,000
• First-time buyer relief: 0% up to £300,000
• Total SDLT: £0
• Effective rate: 0%
• Total purchase cost: £250,000

Example 2: Home Mover at £600,000

A home mover purchasing a property for £600,000 in England:

• 0% on first £125,000: £0
• 2% on £125,001 to £250,000: £2,500
• 5% on £250,001 to £600,000: £17,500
• Total SDLT: £20,000
• Effective rate: 3.3%
• Total purchase cost: £620,000

Example 3: Additional Property at £300,000

A buyer purchasing a £300,000 buy-to-let property (additional property surcharge of 5% applies):

• (0% + 5%) on first £125,000: £6,250
• (2% + 5%) on £125,001 to £250,000: £8,750
• (5% + 5%) on £250,001 to £300,000: £5,000
• Total SDLT: £20,000
• Effective rate: 6.7%
• Total purchase cost: £320,000

Common Mistakes with Stamp Duty

1. Applying the Highest Rate to the Entire Price

SDLT is a progressive tax. Only the portion of the purchase price within each band is taxed at that band's rate. A £300,000 property does not incur 5% on the full amount (£15,000) — the actual SDLT is £5,000 for a home mover.

2. Assuming First-Time Buyer Relief Always Applies

First-time buyer relief is only available on properties up to £500,000. If the property costs £500,001 or more, there is no relief at all and the buyer pays standard rates on the full purchase price. There is no partial relief.

3. Forgetting the Additional Property Surcharge

If you already own a property (including inherited property), you may need to pay the 5% surcharge when buying another residential property. This applies even if you intend to sell your existing home — though you can claim a refund if you sell your previous main residence within 36 months.

4. Using the Wrong Region's Rates

SDLT only applies in England and Northern Ireland. Properties in Scotland are subject to LBTT and properties in Wales are subject to LTT, each with their own rates and thresholds. Using the wrong region's rates can lead to significantly incorrect estimates.

5. Not Accounting for the Non-UK Resident Surcharge

Non-UK residents pay an additional 2% on all bands. This is easy to overlook and can add a substantial amount to the total cost. The surcharge applies even if you intend to move to the UK after the purchase, although you may be eligible for a refund if you become UK resident within 12 months of completion.