Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs when buying a property in England. Yet many buyers don’t fully understand how it works until they’re deep into the conveyancing process. Here’s everything you need to know.
How Stamp Duty works
Stamp Duty is a tax paid to HMRC when you buy a residential property in England or Northern Ireland above a certain price threshold. It’s a progressive tax — meaning you pay different rates on different portions of the purchase price, similar to income tax.
You do not pay the top rate on the entire price. This is one of the most common misconceptions.
Current Stamp Duty rates (2026)
Following the changes that took effect from 1 April 2025, the standard residential rates are:
| Purchase price band | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
First-time buyers
If you’re a first-time buyer purchasing a property up to £625,000, you benefit from a higher nil-rate threshold:
| Purchase price band | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
If the property costs more than £625,000, first-time buyer relief does not apply and you pay the standard rates.
Additional properties
Buying a second home or buy-to-let? You’ll pay a 5% surcharge on top of the standard rates for the entire purchase.
Worked examples
Example 1: Standard purchase at £350,000
- First £125,000 at 0% = £0
- Next £125,000 (£125,001–£250,000) at 2% = £2,500
- Remaining £100,000 (£250,001–£350,000) at 5% = £5,000
- Total: £7,500
Example 2: First-time buyer at £350,000
- First £300,000 at 0% = £0
- Remaining £50,000 (£300,001–£350,000) at 5% = £2,500
- Total: £2,500 (saving £5,000 vs standard rates)
Example 3: Second home at £350,000
- Standard SDLT of £7,500 plus 5% surcharge on £350,000 = £17,500
- Total: £25,000
When do you pay?
Stamp Duty must be paid within 14 days of completion. Your solicitor or conveyancer will usually handle this as part of the transaction, submitting the return and payment to HMRC on your behalf. The cost is included in your completion statement.
Can you avoid or reduce Stamp Duty?
There are a few legitimate ways to reduce your bill:
- First-time buyer relief — as described above, this can save up to £8,750
- Shared ownership — you can choose to pay SDLT on the initial share only (though you’ll pay on staircasing later)
- Transfer between spouses — no SDLT is payable on transfers between married couples or civil partners (provided there’s no outstanding mortgage)
- Property chains — if you’re selling your only home and buying a replacement, the additional property surcharge doesn’t apply
Use our calculator
Want to know exactly how much you’d pay? Use our Stamp Duty Calculator — enter the property price, tell us if you’re a first-time buyer, and get an instant breakdown.
This guide covers Stamp Duty Land Tax (SDLT) for England and Northern Ireland. Scotland uses the Land and Buildings Transaction Tax (LBTT), and Wales uses the Land Transaction Tax (LTT), which have different rates and thresholds.