How does UK stamp duty work? Rates, bands and the surcharges (2026/27)
Stamp Duty Land Tax (SDLT) is the tax you pay when you buy a property or land in England or Northern Ireland above a certain price. It's one of the biggest one-off costs of moving, yet it's widely misunderstood — partly because the rules differ for first-time buyers and for people buying an additional property. Here's how it works for the 2026/27 tax year.
Where stamp duty applies
SDLT covers England and Northern Ireland. Scotland has its own version (Land and Buildings Transaction Tax, LBTT) and Wales has Land Transaction Tax (LTT), both with different bands. The principle is the same everywhere: the more the property costs, the higher the rate — but only on the slice of the price within each band.
Stamp duty rates for 2026/27 (SDLT)
For someone buying their main home (and not a first-time buyer), the bands from April 2025 are:
- 0% on the portion up to £125,000
- 2% on the portion from £125,001 to £250,000
- 5% on the portion from £250,001 to £925,000
- 10% on the portion from £925,001 to £1.5 million
- 12% on anything above £1.5 million
Like income tax, these bands are marginal — you don't pay one flat rate on the whole price, only each rate on the part of the price that falls in that band. For the standard, first-time buyer and additional-property bands all set out side by side, see our full UK stamp duty bands table.
First-time buyer relief
If you're a first-time buyer you pay no SDLT on the first £300,000, and 5% on the portion from £300,001 to £500,000. If the property costs more than £500,000 the relief doesn't apply at all and you pay the standard rates instead. On a joint purchase, both buyers must be first-time buyers to qualify. We cover who qualifies, joint purchases and shared ownership in our full guide to stamp duty for first-time buyers.
The additional-property surcharge
Buying a second home or a buy-to-let? You pay a 5% surcharge on top of the standard rates, across the whole price (this surcharge rose from 3% to 5% in late 2024). It's why landlords and second-home buyers face a much larger bill than someone buying their only home. We cover the exceptions and reclaim rules in detail in our guide to stamp duty on second homes and buy-to-let.
£350,000 home, standard purchase: 0% on the first £125,000 + 2% on the next £125,000 (£2,500) + 5% on the final £100,000 (£5,000) = £7,500.
Same home, first-time buyer: 0% up to £300,000 + 5% on £50,000 = £2,500.
Same home, additional property: £7,500 standard + 5% of £350,000 (£17,500) = £25,000.
Work out your bill
Stamp Duty Calculator
Enter the price and your buyer type — first-time, home mover or additional property — for a band-by-band breakdown of exactly what you'll pay.
Open the calculator →When and how you pay
SDLT is due within 14 days of completion. In practice your solicitor or conveyancer files the return and pays HMRC on your behalf, then bills you — so you rarely deal with HMRC directly. You can't usually add it to your mortgage, so it needs to be cash you have ready alongside the deposit.
Common mistakes
Forgetting to budget for it. On a £350,000 home a mover pays £7,500 — money that must be available on completion, separate from the deposit.
Assuming first-time relief always applies. It vanishes entirely above £500,000.
Overlooking the surcharge timing. If you buy a new main home before selling the old one, you may pay the 5% surcharge upfront and reclaim it later — plan for the cashflow.
Frequently asked questions
What price does stamp duty start at?
For a home mover buying their only property, stamp duty starts once the price passes £125,000 — everything below that is taxed at 0%. First-time buyers pay nothing until the price passes £300,000 (as long as the property costs £500,000 or less). Anyone buying an additional property pays the 5% surcharge from the first pound, so there's no tax-free amount at all.
How is stamp duty worked out?
It's calculated in slices, like income tax. Each rate applies only to the part of the price that falls within its band — you never pay one flat rate on the whole price. On a £350,000 home, a mover pays 0% on the first £125,000, 2% on the next £125,000, and 5% on the final £100,000, giving £7,500 in total.
What are the stamp duty bands for 2026/27?
For a standard purchase in England or Northern Ireland: 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million, and 12% above that. Additional properties add a 5% surcharge to every band; Scotland and Wales use different bands under LBTT and LTT.
How is stamp duty paid?
An SDLT return must be filed and the tax paid within 14 days of completion. In practice your solicitor or conveyancer does both on your behalf and includes the tax in your completion statement, so most buyers never deal with HMRC directly. It usually can't be added to your mortgage — it needs to be cash available on completion day.
Do first-time buyers pay stamp duty?
Often not. First-time buyers pay 0% on the first £300,000 and 5% on the portion from £300,001 to £500,000 — so anything up to £300,000 is completely free of SDLT. But if the property costs more than £500,000 the relief disappears entirely and standard rates apply to the whole price, and on a joint purchase every buyer must be a first-time buyer to qualify.
How have stamp duty rates changed over the years?
The modern sliced system dates from December 2014, replacing the old "slab" rates. Since then: the 3% additional-property surcharge arrived in April 2016, first-time buyer relief in November 2017, a temporary holiday with a £500,000 nil-rate band ran from July 2020 to mid-2021, the nil-rate band was doubled to £250,000 in September 2022, the surcharge rose from 3% to 5% in October 2024, and from April 2025 the nil-rate band returned to £125,000. Older rates you may see quoted for 2017–2024 are no longer in force. For the full year-by-year detail, see our guide to UK stamp duty rates by year.