How Stamp Duty works
SDLT is a slice tax: each portion of the price is taxed at its own rate, a bit like Income Tax bands. You don’t pay one rate on the whole price. So on a home just over £250,000 you don’t suddenly owe 5% on everything — only on the slice above £250,000.
What you pay depends on three things: how much you paid, whether you’re a first-time buyer, and whether, after buying, you’ll own more than one residential property. It applies in England and Northern Ireland only.
It’s an upfront cost, not part of the mortgageStamp Duty is paid at completion and usually can’t be added to your mortgage. Budget for it alongside your deposit, legal fees and survey — run the numbers with our
Mortgage Ready Score.
The standard rates
These apply if, after buying, the property is the only home you own (your main residence):
| Portion of the price | SDLT rate |
|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Each rate applies only to the part of the price that falls inside that band.
First-time buyer relief
If everyone buying is a first-time buyer and the home costs £500,000 or less, you get a discount:
| Portion of the price | SDLT rate (first-time buyer) |
|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
The £500,000 cliff edgeIf the price is over £500,000, you get no first-time buyer relief at all — you pay the standard rates on the whole thing. A property must also be a home you intend to live in, and you must not have owned property anywhere in the world before.
Worked examples
| Situation | Stamp Duty |
|---|
| £295,000 — a home you’ll own as your only property | £0 + £2,500 + £2,250 = £4,750 |
| £500,000 — first-time buyer | £0 on the first £300k + 5% on £200k = £10,000 |
| £250,000 — first-time buyer | £0 (under the £300,000 relief threshold) |
| £300,000 — buying a second home / buy-to-let | standard £2,500 + 5% surcharge on £300k (£15,000) = £17,500 |
Check your exact figure freeHMRC’s official
Stamp Duty calculator works out the precise amount for your price and situation in under a minute. Do it before you make an offer, so the number never surprises you.
Wales and Scotland are different
Stamp Duty Land Tax only covers England and Northern Ireland. The other nations run their own property-purchase taxes with different bands:
| Where you’re buying | The tax |
|---|
| England & Northern Ireland | Stamp Duty Land Tax (SDLT) — HMRC (this page) |
| Wales | Land Transaction Tax (LTT) — Welsh Revenue Authority. Different bands; no first-time buyer relief. |
| Scotland | Land and Buildings Transaction Tax (LBTT) — Revenue Scotland. Different bands; does have a first-time buyer relief. |
If you’re buying in Wales or Scotland, use the LTT or LBTT rates on the relevant nation’s site — not the SDLT figures above.
When — and how — you pay
You must file an SDLT return and pay within 14 days of completing your purchase. In practice your solicitor or conveyancer normally handles the return and pays HMRC out of your completion funds, then shows it on your bill — you rarely deal with HMRC directly.
Do this now
Before you make an offer, run your exact price through HMRC’s free Stamp Duty calculator. Add the figure to your upfront costs (deposit + legal fees + survey) so you know the true cash you need on day one.
Then check you’re actually mortgage-ready with our Mortgage Ready Score, and see every step of buying with the home-buyer guide.
Related guides — buying a home
Source verification
Primary source: GOV.UK / HMRC — Stamp Duty Land Tax: Residential property rates:
gov.uk/stamp-duty-land-tax/residential-property-rates (page last updated by GOV.UK 19 June 2026). Last verified by SortedUK 2 July 2026 — the standard bands (0% to £125,000; 2% to £250,000; 5% to £925,000; 10% to £1.5m; 12% above), the first-time buyer relief (0% to £300,000, 5% to £500,000, none above £500,000), the 5% additional-property surcharge, the 2% non-resident surcharge, the 36-month replacement-of-main-residence rule, the worked examples (£295,000 = £4,750; first-time buyer £500,000 = £10,000) and the 14-day payment deadline were web-checked directly against the GOV.UK page. Confidence: High — published HMRC rates, currently in force. Scope: England & Northern Ireland (Wales = LTT via the Welsh Revenue Authority; Scotland = LBTT via Revenue Scotland). Not financial advice — use HMRC’s calculator or a solicitor for your exact figure.
Stamp Duty — common questions
How much Stamp Duty will I pay?
It depends on the price and your situation. For a single home you pay nothing up to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m and 12% above — charged on each slice. A £295,000 home = £4,750. First-time buyers pay less; second homes pay 5% extra. Use HMRC’s free calculator for your exact figure.
Do first-time buyers pay Stamp Duty?
You pay nothing on the first £300,000 and 5% on the portion from £300,001 to £500,000 — so a home at or under £300,000 is Stamp-Duty-free. If the price is over £500,000 you get no relief and pay the standard rates on the whole amount. Everyone buying must be a first-time buyer.
How much extra is it on a second home?
Usually a 5% surcharge on top of the standard rates, on the whole price, if you’ll own more than one property after buying. You avoid it if the new home replaces your main residence and you sold the old one within 36 months — and you can claim a refund if you sell the old home after paying.
When do I have to pay it?
You must file and pay within 14 days of completion. Your solicitor normally handles the return and pays HMRC from your completion funds, then adds it to your bill — but you need the cash ready, so budget for it upfront.
Is it the same in Wales and Scotland?
No. Stamp Duty Land Tax is England and Northern Ireland only. Wales charges Land Transaction Tax (LTT) with no first-time buyer relief; Scotland charges Land and Buildings Transaction Tax (LBTT), which does have one. Use the relevant nation’s rates if you’re not buying in England or NI.