Stamp Duty Land Tax Explained: Rates, Reliefs & Worked Examples (2026/27)

Stamp Duty Land Tax is the tax you pay when you buy a property or land in England or Northern Ireland — and it is often the biggest upfront cost after the deposit. It starts at £125,000 for a home that will be your only property, and the bill can run into tens of thousands of pounds on an expensive purchase. First-time buyers get relief, second-home buyers pay a surcharge, and the rates work in slices, like income tax, so only part of the price is taxed at the higher rates. This guide explains the Stamp Duty Land Tax rates for 2026/27, the reliefs, the surcharges, and what you actually pay on real purchase prices.

What is Stamp Duty Land Tax?

Stamp Duty Land Tax (SDLT) is a tax on buying property or land over a certain price in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax instead, and Wales charges Land Transaction Tax, so the rates and rules in this guide only apply to purchases in England and Northern Ireland.

You pay it on the purchase price (the “consideration”), and the amount depends on the price, the type of property, whether you already own another home, and whether you are a first-time buyer. Your conveyancer or solicitor usually files the SDLT return and pays the tax for you as part of the purchase, but the tax itself is yours to pay. The return and the payment are due within 14 days of completion — the date the transaction takes effect — and you must file a return even if no tax is due, for example when you are claiming a relief.

Stamp Duty Land Tax rates for your only home

If the home you are buying will be your only residential property, you pay Stamp Duty Land Tax at these rates, in force since 1 April 2025 and unchanged by the Budget on 28 October 2026:

The key point is that each rate applies only to the slice of the price inside that band — not to the whole price. A £300,000 home does not pay 5% on £300,000. It pays nothing on the first £125,000, 2% on the next £125,000, and 5% only on the final £50,000.

Worked examples: what you actually pay

How the £295,000 example works (GOV.UK’s own example): nothing on the first £125,000, £2,500 on the next £125,000 at 2%, and £2,250 on the final £45,000 at 5% — £4,750 in total. A first-time buyer paying £350,000 owes £2,500 and saves £5,000 against the standard £7,500. Above £500,000, first-time buyer relief disappears entirely, so a £600,000 purchase costs £20,000 whoever buys it. Check your own figure with HMRC’s Stamp Duty Land Tax calculator before you exchange contracts, because the exact price — and any fixtures or fittings included in it — changes the bill.

First-time buyer relief

If you and everyone buying with you are first-time buyers, you pay no Stamp Duty Land Tax on the first £300,000 of a home costing £500,000 or less, and 5% on the portion from £300,001 to £500,000. That saves up to £5,000 — the difference between the £10,000 a first-time buyer pays on a £500,000 home and the £15,000 a standard buyer pays on the same price.

Three conditions matter. First, every buyer must be a first-time buyer — if one joint buyer has owned a home before, no one gets the relief. Second, the test is worldwide: if you have ever owned a home anywhere in the world, you are not a first-time buyer for SDLT. Third, the relief only applies to homes costing £500,000 or less; above that price the standard rates apply to the whole price, with no relief at all. The property must also be your only or main residence. Before April 2025 the relief was more generous (no tax up to £425,000 on homes up to £625,000); the current £300,000 / £500,000 limits have applied since 1 April 2025.

Buying a second home or a buy-to-let

If the purchase leaves you owning more than one residential property, the rules for stamp duty on a second home apply: you usually pay 5 percentage points on top of the standard rates on every band — including the 0% band. The effective rates become 5%, 7%, 10%, 15% and 17%. Because the surcharge applies from the first pound, it adds 5% of the whole purchase price: a £295,000 second home costs £19,500 in Stamp Duty Land Tax, against £4,750 for the same home as an only property.

The surcharge applies to additional properties costing £40,000 or more. It rose from 3% to 5% on 31 October 2024, so anything you read that still quotes 3% is out of date. It also applies to landlords buying a buy-to-let, and to buyers who own a property anywhere in the world. Landlords buying a buy-to-let should also read our guide to the tax return for landlords in the UK. When you sell a second home later, Capital Gains Tax can apply to the gain. If you are building a portfolio, property accountants can help you plan the tax side before you buy.

There is one important exception: replacing your main residence. If you sell your old home on or before the day you complete on the new one, no surcharge applies. If you buy the new home first and sell the old one later, you pay the surcharge up front — but you can reclaim it if the old home sells within 36 months of the new completion. Multiple Dwellings Relief, which used to reduce the bill on portfolio purchases, was abolished for transactions completing on or after 1 June 2024, so landlords can no longer claim it.

Non-residential property and other cases

For non-residential or mixed-use land and property, Stamp Duty Land Tax starts at £150,000: 0% up to £150,000, 2% on £150,001 to £250,000, and 5% above £250,000. A £300,000 commercial property therefore costs £4,500 — nothing on the first £150,000, £2,000 on the next £100,000, and £2,500 on the final £50,000. There is no first-time buyer relief, no additional-property surcharge and no non-resident surcharge on non-residential property.

Two more cases to know about. If you are not UK resident for SDLT purposes, you usually pay a 2% surcharge on top of the residential rates — and it can stack with the 5% additional-property surcharge. And on leases, you pay 1% on the net present value of the rent above £125,000, as well as tax on any premium.

What changed — and what did not

Stamp Duty Land Tax has changed three times in quick succession, which is why so much of what you read online is wrong. The additional-property surcharge rose from 3% to 5% on 31 October 2024. Then, on 1 April 2025, the standard nil-rate threshold reverted from a temporary £250,000 to £125,000, and first-time buyer relief dropped from the temporary £425,000 / £625,000 limits to £300,000 / £500,000. Multiple Dwellings Relief ended on 1 June 2024.

The Budget on 28 October 2026 did not change Stamp Duty Land Tax rates, thresholds or first-time buyer relief — the rates in the Budget 2026 Annex A are the same rates that have applied since 1 April 2025. The rate that applies to your purchase is the one in force on the effective date, normally completion, so a purchase completing after a Budget uses the new rules even if you exchanged before it. For the full rules, see GOV.UK’s Stamp Duty Land Tax guide.

What to check now

• Work out the bill before you offer. Use the slice-by-slice rates above, or HMRC’s Stamp Duty Land Tax calculator on GOV.UK, so the tax is in your budget alongside the deposit, mortgage fees and conveyancing costs.
• Check first-time buyer relief properly. Every joint buyer must qualify, and the test is worldwide — owning a home abroad disqualifies you.
• If you own another property, budget for the surcharge. It adds 5% of the whole price, and it applies from the first pound on purchases of £40,000 or more.
• Mind the 14-day deadline. The SDLT return and payment are due within 14 days of completion, and penalties apply if you file or pay late.
• Tell your conveyancer about any property you own. The surcharge and the reliefs both turn on what you own on completion day, anywhere in the world.
• Check the right tax for the right country. This guide covers England and Northern Ireland only — Scotland and Wales have their own transaction taxes with different bands.

Frequently asked questions

How much is Stamp Duty Land Tax on a £300,000 house?
For a home that will be your only property, £5,000: nothing on the first £125,000, £2,500 on the next £125,000 at 2%, and £2,500 on the final £50,000 at 5%. A first-time buyer pays nothing on a £300,000 home, because the relief covers the first £300,000.

Do first-time buyers pay Stamp Duty Land Tax?
They pay nothing on the first £300,000 of a home costing £500,000 or less, and 5% on the portion from £300,001 to £500,000. Above £500,000 there is no relief at all and the standard rates apply. Every joint buyer must be a first-time buyer, and the test is worldwide.

How much is Stamp Duty Land Tax on a second home?
You pay the standard rates plus a 5% surcharge on every band, which adds 5% of the whole purchase price. A £295,000 second home costs £19,500, against £4,750 for the same home as an only property. The surcharge does not apply if you are replacing your main residence and sell the old home on or before completion.

When do you pay Stamp Duty Land Tax?
The SDLT return and payment are due within 14 days of completion. Your conveyancer usually files and pays it for you, but you must still file a return even if no tax is due — for example, when you are claiming first-time buyer relief.

Does Stamp Duty Land Tax apply in Scotland or Wales?
No. Stamp Duty Land Tax applies in England and Northern Ireland only. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, with different bands, thresholds and surcharges.

This article gives general information about UK tax, not personal financial or tax advice. Tax rules can change, and your situation may be different. Check GOV.UK or speak to a qualified accountant before you act.