Stamp Duty UK 2026: Rates and First-Time Buyer Relief Explained

Stamp duty caught a lot of buyers off guard in April 2025. The temporary higher thresholds that had been in place since 2022 expired, and the zero-rate band dropped from £250,000 back to £125,000 overnight. If you are buying a home in England in 2026, here is exactly what you will pay, and how to check it for your own purchase with our stamp duty calculator.

What is stamp duty?

Stamp duty is a tax you pay when you buy property or land above a certain price. The name changes depending on where you buy. In England and Northern Ireland it is Stamp Duty Land Tax (SDLT). In Scotland it is the Land and Buildings Transaction Tax (LBTT). In Wales it is the Land Transaction Tax (LTT). The idea is the same in each: a percentage charged in bands, with only the portion of the price inside each band taxed at that band's rate.

Current stamp duty rates in England from April 2025

For a standard buyer in England and Northern Ireland, the SDLT bands published by GOV.UK are:

• 0% on the first £125,000
• 2% on £125,001 to £250,000
• 5% on £250,001 to £925,000
• 10% on £925,001 to £1.5 million
• 12% on anything above £1.5 million

Take a £350,000 home as a worked example. You pay nothing on the first £125,000, then 2% on the next £125,000, which is £2,500, then 5% on the remaining £100,000, which is £5,000. Your total bill is £7,500. The price never gets taxed all at one rate, which is why the headline percentage can feel misleading until you do the bands.

First-time buyer relief in 2026

First-time buyers get a meaningful break. Under GOV.UK first-time buyer relief you pay no stamp duty on the first £300,000 and 5% on the portion from £300,001 to £500,000. There is one cliff edge to watch: if the property costs more than £500,000, the relief vanishes entirely and you pay standard rates on the whole price.

On a £350,000 first home, a first-time buyer pays nothing on the first £300,000 and 5% on the remaining £50,000, which is £2,500. Compare that with the £7,500 a standard buyer pays, and the relief is worth £5,000. If your purchase is hovering near £500,000, it can genuinely be worth negotiating below the line to keep the relief.

The additional property surcharge

Buying a second home or a buy-to-let adds a surcharge of 5% on top of the standard rates, applied to the entire purchase price, for any purchase of £40,000 or more. This stacks on every band, so it adds up fast.

Picture a £300,000 second home. The standard duty would be £5,000. The 5% surcharge adds £15,000 on the full price, bringing the total to £20,000, against just £5,000 for someone buying it as their only home. Landlords and second-home buyers should factor this in before they make an offer, because it can swing the maths on a rental yield. Non-UK residents pay a separate 2% surcharge on top.

Scotland (LBTT) and Wales (LTT)

Scotland's LBTT has its own bands: 0% to £145,000, 2% to £250,000, 5% to £325,000, 10% to £750,000 and 12% above that. Second properties carry an 8% Additional Dwelling Supplement, charged on the full price, which is higher than the English surcharge.

Wales sets a higher entry point. LTT charges nothing up to £225,000, then 6% to £400,000, 7.5% to £750,000, 10% to £1.5 million and 12% above. The catch is that Wales has no first-time buyer relief at all, so a first-time buyer and a mover pay the same. Our calculator switches between all three nations so you can compare.

When do you pay?

Stamp duty is due quickly after you complete. In England and Northern Ireland you have 14 days to file the return and pay. In Scotland and Wales the window is 30 days. In practice your solicitor or conveyancer files it for you and adds the amount to your completion statement, so the money usually moves at completion. Miss the deadline and you face penalties and interest, so it is not something to leave to the last minute.

A worked example on a £600,000 home

Higher up the ladder the bands stack into a larger bill. On a £600,000 home in England, a standard buyer pays nothing on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the remaining £350,000 (£17,500). The total is £20,000. A first-time buyer gets no relief at this price because it is above £500,000, so they pay the same £20,000.

Make it a buy-to-let and the picture changes sharply. The 5% surcharge adds £30,000 on the full price, taking the bill to £50,000. That single line can decide whether a rental investment stacks up, which is why serious property investors run the stamp duty figure before anything else.

Can you reduce your stamp duty?

There are a few legitimate ways to lower the bill, though none are loopholes. If you are a first-time buyer, keeping the purchase under £500,000 preserves the relief, so negotiating below that line can save thousands. If you are buying a home that needs major work, the chargeable amount is the price you pay, so genuine price negotiation matters.

Couples should also check the surcharge rules carefully. If either partner already owns a property, the purchase can count as an additional dwelling and attract the 5% surcharge, even if the new home is your main residence. In some cases selling the previous main home within the time limit lets you reclaim the surcharge, so keep the paperwork and speak to your solicitor about timing.

One more wrinkle catches buyers of unusual properties. A home with a self-contained annexe, a property bought with a paddock, or anything part-commercial can fall under mixed-use rules, which sometimes use a different rate scale. The amounts involved can be large either way, so if your purchase is anything other than a standard house or flat, flag it to your conveyancer early rather than assuming the residential rates apply.

Budget for the full cost of buying

Stamp duty is one cost among several, and it is easy to forget when you are focused on the deposit. Work out your exact bill with the stamp duty calculator, then use the mortgage calculator to see your monthly repayments and the income tax calculator to check the take-home pay that has to cover it all. Seeing the numbers together stops the nasty surprise that catches so many buyers in the final weeks of a purchase.

This is general information, not legal or tax advice. Stamp duty rates and reliefs can change and depend on your circumstances. Confirm your figures with your solicitor or the official guidance at gov.uk before completing a purchase.