How Much Stamp Duty Will I Pay – Complete UK Guide 2025/2026
If you are buying a home in the UK, one of the largest upfront costs you will face is Stamp Duty Land Tax. The amount you pay depends on the purchase price, where the property is located, whether it is your first home or an additional property, and when you complete the purchase. Rates are set to change from April 2025, which will affect calculations for many buyers in 2026.
Stamp Duty is a one-time tax paid by the buyer upon completion of the purchase. It is calculated on a marginal basis, meaning you only pay the higher rate on the portion of the price that falls within each threshold. Understanding the current bands and upcoming changes is essential for accurate budgeting.
How much Stamp Duty will I pay?
The answer depends on your specific circumstances. Below is a quick overview to help you estimate your liability based on current rates for England and Northern Ireland, followed by a detailed breakdown.
How much will you pay?
Enter your property price and situation to get an instant estimate based on current UK rates.
Second home?
An extra 5% surcharge applies to additional properties in England and Northern Ireland. Different rules apply in Scotland.
Scotland rules differ
Scotland uses Land and Buildings Transaction Tax with different thresholds and an Additional Dwelling Supplement of 8%.
2026 outlook
From April 2025, the nil-rate band reverts to £125,000 and the first-time buyer threshold to £300,000, affecting 2026 purchases.
Key insights
- More than half of homebuyers in England will pay no Stamp Duty in 2025 thanks to the £250,000 nil-rate band, but this is temporary and reverts in April 2025.
- Second-home buyers in England face an effective minimum rate of 5% on the first £125,000, rising sharply for higher bands.
- First-time buyers in Scotland get a different relief structure, with no LBTT up to £175,000, making it cheaper than England for sub-£300,000 homes.
- The 2026 effective rates will be higher for many buyers because the nil-rate band halves from £250,000 to £125,000.
Stamp Duty snapshot for common scenarios
| Scenario | Property Price | Total SDLT (approx) |
|---|---|---|
| Standard buyer (England), current rates | £300,000 | £2,500 |
| Standard buyer (England), current rates | £400,000 | £7,500 |
| Standard buyer (England), current rates | £500,000 | £15,000 |
| First-time buyer (England), current rates | £400,000 | £0 |
| Second home (England), current rates | £400,000 | £17,500 |
| Standard buyer (Scotland), current LBTT | £300,000 | £4,600 |
| Standard buyer (England), post-April 2025 | £300,000 | £6,000 |
Calculations based on published rates; exact figures may vary depending on surcharges, reliefs, and dates.
How much Stamp Duty will I pay on a second home?
Buying a second home or a buy-to-let property in England or Northern Ireland means you pay a 5% surcharge on top of the standard rates. This surcharge applies to each band, significantly increasing the total tax bill. Non-UK residents also pay an additional 2% surcharge.
Additional property rates for England and Northern Ireland
| Purchase Price | Additional Property Rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Over £1.5 million | 17% |
For example, a £400,000 second home would incur Stamp Duty of approximately £17,500, compared to £7,500 for a standard purchase at the same price. The surcharge is a significant factor in budgeting for additional properties. You can get a precise estimate using the Rightmove Stamp Duty calculator.
If you sell your previous main residence within 36 months of buying a new one, you can claim a refund of the additional property surcharge. This rule applies in England and Northern Ireland.
How much Stamp Duty will I pay in Scotland?
Scotland does not use Stamp Duty Land Tax. Instead, it has its own system called Land and Buildings Transaction Tax. The thresholds and rates are different, and there is an Additional Dwelling Supplement for second homes.
Standard LBTT rates for main residences
| Purchase Price | LBTT Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
First-time buyers in Scotland
First-time buyers in Scotland pay no LBTT on properties up to £175,000. This makes buying a first home below that threshold significantly cheaper compared to England for the same price. Above £175,000, standard rates apply to the portion exceeding that amount.
Additional Dwelling Supplement
If you buy a second home in Scotland, you pay an extra 8 percentage points on top of the standard LBTT rates. This is a substantial surcharge that can make a significant difference to your total tax bill. For example, a £300,000 second home in Scotland would be taxed at much higher rates than the same purchase in England.
| Purchase Price | Higher Rate LBTT |
|---|---|
| Up to £145,000 | 8% |
| £145,001 to £250,000 | 10% |
| £250,001 to £325,000 | 13% |
| £325,001 to £750,000 | 18% |
| £750,001+ | 20% |
These rates are confirmed by the Scottish Government. Always check the latest official LBTT rates before completing a purchase.
For a £300,000 standard purchase, the total LBTT in Scotland is approximately £4,600, compared to £2,500 SDLT in England. However, first-time buyers in Scotland save more on cheaper properties due to the £175,000 relief threshold.
How much Stamp Duty will I pay on a £300,000, £400,000 or £500,000 house?
The exact amount depends on your buyer status and location. Here are the calculations for standard buyers in England using current rates.
£300,000 property
At £300,000, a standard buyer pays 0% on the first £250,000 and 5% on the remaining £50,000, totalling £2,500. A first-time buyer currently pays nothing. After April 2025, the same purchase would attract tax on the portion above £125,000, resulting in approximately £6,000 for a standard buyer.
£400,000 property
A standard buyer pays 0% on the first £250,000, then 5% on the next £150,000, giving a total of £7,500. A first-time buyer currently pays nothing. A second-home buyer pays the same plus 5% surcharge, totalling approximately £17,500.
£500,000 property
For a £500,000 home, the calculation is: 0% on £250,000, 5% on the next £250,000, totalling £12,500. The first-time buyer relief does not apply above £500,000, so they pay the same as a standard buyer. A second-home buyer pays an additional 5% surcharge, making the total approximately £25,000.
These examples highlight how much the total can vary depending on your situation. You can use the official MoneyHelper Stamp Duty calculator for a precise figure.
How much Stamp Duty will I pay in 2026?
From 1 April 2025, the nil-rate band for standard buyers will revert from £250,000 to £125,000. For first-time buyers, the threshold will drop from £425,000 to £300,000. This means anyone completing a purchase in 2026 will be subject to these lower thresholds unless further changes are announced in a future budget.
A standard buyer purchasing a £300,000 home in 2026 will pay £6,000 in Stamp Duty, compared to £2,500 in 2025. A first-time buyer purchasing a £400,000 home will pay 5% on the excess above £300,000, totalling £5,000, whereas they currently pay nothing. This change represents a significant increase for many buyers.
If you are planning to buy in 2026, factor the higher rates into your budget. Consider completing before the April 2025 deadline if possible, or be prepared for a larger tax bill.
Key Stamp Duty changes timeline
- – Nil-rate band temporarily increased to £500,000 as a Covid stimulus measure.
- – Nil-rate band reverted to £125,000, except for first-time buyers.
- – Mini-budget raised nil-rate band to £250,000 and first-time buyer threshold to £425,000, later made permanent.
- – Planned reversion: nil-rate band to £125,000, first-time buyer threshold to £300,000.
- – Rates remain at post-reversion levels unless further changes announced in future budgets.
Future changes depend on government fiscal events. Always verify current rates with HMRC before completing a purchase.
What is certain and what remains unclear about Stamp Duty?
| Established information | Information that remains unclear |
|---|---|
| Current SDLT rates for England and Northern Ireland: 0% up to £250,000, 5% up to £925,000, etc. | Future rates after 2026 could be altered by subsequent budgets or changes in government policy. |
| Second home surcharge in England and Northern Ireland is 5% above standard rates. | Potential new reliefs or surcharges may be introduced in future fiscal events. |
| Scotland uses LBTT with different thresholds and a 4% Additional Dwelling Supplement. | Exact calculation may differ if thresholds are updated mid-year, though this is unlikely. |
| The nil-rate band will revert to £125,000 and first-time buyer threshold to £300,000 on 1 April 2025. | Non-resident levy or other surcharges could be adjusted in future budgets. |
What is Stamp Duty and why does timing matter?
Stamp Duty Land Tax is a tax paid by the buyer on the purchase of a residential property in England and Northern Ireland. It is a one-time cost, usually paid on the day of completion. The tax is calculated on a marginal basis, meaning only the portion of the price within each band is taxed at that band’s rate.
Timing matters because rates and thresholds can change. The current nil-rate band of £250,000 is scheduled to revert to £125,000 on 1 April 2025. This change was announced in the Autumn Budget 2024 and will affect anyone completing after that date. Buyers should check the expected completion date carefully when budgeting.
First-time buyers in England currently pay no Stamp Duty on properties up to £425,000, but this threshold will drop to £300,000 after April 2025. Buyers of second homes or buy-to-let properties face an extra 5% surcharge in England, which can significantly increase costs. Scotland’s LBTT offers lower initial rates but a higher top rate on expensive properties.
Where can I find official sources and further guidance?
The most reliable sources for current Stamp Duty rates are official government websites. HMRC publishes the full rate tables for England and Northern Ireland. The Scottish Government provides LBTT rates and thresholds. The Welsh Revenue Authority sets Land Transaction Tax rates for Wales.
“Always cross-check with the official HMRC page for the most current rates. Future changes depend on government fiscal events.”
– MoneySavingExpert stamp duty guide
For a quick estimate, use the official calculator on the MoneyHelper website, which is linked from the government’s Stamp Duty page. The Scottish Government also provides a calculator for LBTT. These tools are updated to reflect the latest rates and thresholds.
What should I do next to work out my Stamp Duty?
To estimate your exact liability, use the official calculator on MoneyHelper or the one embedded above. Select the appropriate option if you are buying a second home or purchasing in Scotland. Check your expected completion date, as rates change after 31 March 2025. Ensure you budget for Stamp Duty in your total purchase costs, as it is usually paid on completion day. For further guidance, consult a solicitor or conveyancer. You can also refer to our detailed guide on Stamp Duty Land Tax rates 2025-2026 for more information.
Frequently asked questions about Stamp Duty
Can I add Stamp Duty to my mortgage?
Generally no – Stamp Duty must be paid from your own funds on completion. Some lenders may allow it to be rolled into the mortgage if the loan-to-value permits, but this is rare.
Is Stamp Duty the same for commercial property?
No – commercial property has different rates, usually 0% up to £150,000, then 2% above. This article covers residential property only.
Do I pay Stamp Duty if I inherit a house?
If you inherit and then purchase a new property, SDLT may apply. Inheriting alone does not trigger SDLT, but there may be inheritance tax implications.
What happens if I sell a house quickly after buying?
If you sell within 36 months, you may be able to claim a refund of the extra 5% second-home surcharge if you are replacing your main residence.
Where can I find the official Stamp Duty calculator?
The official HMRC calculator is embedded on the MoneyHelper website. You can also find it via the gov.uk page.
How is Stamp Duty calculated?
Stamp Duty is calculated on a marginal basis. You pay the rate for each band only on the portion of the price within that band. Our guide on how to calculate your stamp duty explains this in detail.
What are the Stamp Duty rates in Wales?
Wales uses Land Transaction Tax. Standard rates are 0% up to £225,000, 6% from £225,001 to £400,000, and higher rates above that. Second home rates are different.
Do I pay Stamp Duty on a new build?
Yes, Stamp Duty applies to new build homes in the same way as existing properties. The price you pay is the purchase price, so the same thresholds and rates apply.
More related posts
May I Ask for One Final Thing – Complete Guide to Anime, Manga and Season 2
Perfect Example Crossword Clue – Top Answers for Every Grid
Elon Musk – Net Worth, Children and Latest News 2025
Edgar Allan Poe – Biography, Poems, and Death Mystery
Where I Hong Kong – Location, Statu , and Key Fact
Sharp Sand Near Me – 2025 Prices & Best Local Suppliers
Celebrity Race Across the World – Winners Routes and Guide
Waitrose Jobs Near Me – Full Application Guide for 2025
