Stamp Duty Calculator Guide: Every Rate Explained
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land in England and Northern Ireland. The amount depends on the purchase price, whether you are a first-time buyer, and whether you already own property. Scotland and Wales have their own versions (LBTT and LTT respectively).
Current SDLT Bands (2025/26)
| Purchase price band | Standard rate | Additional property rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
SDLT is calculated in bands (like income tax) — you only pay the higher rate on the portion of the price that falls within each band.
First-Time Buyer Relief
If you are a first-time buyer purchasing a property worth up to £625,000, you pay no SDLT on the first £425,000 and 5% on the portion between £425,001 and £625,000. If the property costs more than £625,000, you lose the relief entirely and pay standard rates.
Additional Property Surcharge
If you already own a property and are buying an additional one (buy-to-let, second home), you pay an extra 5% on top of every band. This applies to the entire purchase price from the first pound.
Non-Resident Surcharge
If you are not a UK resident, there is an additional 2% surcharge on top of the applicable rates. This stacks with the additional property surcharge — so a non-resident buying a second property could pay up to 7% extra.
Worked Examples
Example 1 — £250,000 (Standard)
First £125,000 at 0% = £0
Next £125,000 at 2% = £2,500
Total SDLT: £2,500
Example 2 — £400,000 (First-Time Buyer)
First £425,000 at 0% = £0
Property is under £425,000 threshold.
Total SDLT: £0 — saving of £7,500 compared to standard rates.
Example 3 — £600,000 (Standard)
First £125,000 at 0% = £0
Next £125,000 at 2% = £2,500
Next £350,000 at 5% = £17,500
Total SDLT: £20,000
Example 4 — £1,000,000 (Additional Property)
First £125,000 at 5% = £6,250
Next £125,000 at 7% = £8,750
Next £675,000 at 10% = £67,500
Next £75,000 at 15% = £11,250
Total SDLT: £93,750 (vs £41,250 at standard rates)
When You Do NOT Pay Stamp Duty
- Property transferred as part of a divorce or dissolution settlement
- Property left to you in a will (inheritance)
- Property transferred to a spouse or civil partner (no consideration)
- Purchase price is under £125,000 (standard) or under £425,000 (FTB)
- Buying a houseboat, caravan or mobile home (not classed as land)
How to Reduce Your Stamp Duty Bill
- Claim first-time buyer relief if eligible — saves up to £10,000.
- Negotiate on price. A property at £250,000 vs £260,000 saves £500 in SDLT.
- Separate fixtures and fittings. Carpets, curtains and appliances are not subject to SDLT if listed separately (must be at fair market value).
- Claim multiple dwellings relief. If buying a property with an annexe, you may pay SDLT on the average price per dwelling.
- Sell before buying. If you sell your main home before completing on the new one, you avoid the additional property surcharge.
- Claim a refund. If you paid the additional property surcharge but sold your previous main home within 3 years, you can reclaim the extra.
Use our stamp duty calculator to get an instant calculation for your property purchase.
Key Takeaways
- SDLT is paid in bands — you only pay the higher rate on each slice.
- First-time buyers pay nothing on the first £425,000 (up to £625,000 purchases).
- Additional property surcharge adds 5% across every band.
- Non-residents pay an extra 2% on top of everything.
- Budget for SDLT alongside your deposit — it is due within 14 days of completion.