Stamp Duty Explained: Rates, Thresholds and How to Calculate It
Last updated: May 2026 · 7 min read
Stamp Duty Land Tax (SDLT) is the tax you pay when buying property or land in England and Northern Ireland above a certain price. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Understanding the rates and reliefs available can save you thousands.
Current Stamp Duty Rates (2025/26)
The standard SDLT rates for residential property purchases in England and Northern Ireland are tiered. You only pay the rate on the portion of the price within each band, not on the entire purchase price. This is a common misconception.
| Property Price Band | Rate |
|---|---|
| Up to 250,000 | 0% |
| 250,001 to 925,000 | 5% |
| 925,001 to 1,500,000 | 10% |
| Above 1,500,000 | 12% |
First-Time Buyer Relief
First-time buyers pay no stamp duty on the first 300,000 pounds of a property costing up to 500,000 pounds. On the portion between 300,000 and 500,000 pounds you pay 5%. If the property costs more than 500,000 pounds, you pay the standard rates on the entire price with no relief. Use the CalcPad stamp duty calculator to see your exact bill.
Additional Property Surcharge
If you already own a property (including buy-to-let or inherited properties), you pay an additional 5% surcharge on top of the standard rates when buying another residential property costing more than 40,000 pounds. This means a buy-to-let investor purchasing a 300,000 pound property would pay 12,500 pounds in stamp duty rather than 2,500 pounds.
How to Calculate Your Stamp Duty
For a property costing 450,000 pounds: the first 250,000 is tax-free, and you pay 5% on the remaining 200,000 (10,000 pounds). Total SDLT = 10,000 pounds. For an exact calculation at any price point, use our stamp duty calculator.
When Do You Pay Stamp Duty?
You must file a return and pay SDLT within 14 days of completion. Your solicitor or conveyancer normally handles this for you as part of the conveyancing process. Late filing incurs penalties and interest charges from HMRC.
Stamp Duty Exemptions and Reliefs
No SDLT is due on properties transferred due to divorce or dissolution of civil partnership, properties left in a will, or properties transferred to a company for no payment. Multiple Dwellings Relief was abolished in June 2024, so buying multiple properties in a single transaction no longer qualifies for a reduced rate. Always check the latest HMRC guidance or speak to your solicitor about reliefs that may apply to your situation.
Calculate Your Stamp Duty Instantly
Enter any property price and get an instant breakdown. Try the calculator →