Calculate how much Stamp Duty Land Tax (SDLT) you will pay on a property purchase in England or Northern Ireland. Covers standard purchases, first-time buyer relief and the additional property surcharge for buy-to-let and second homes. Updated for 2026/27.
Stamp Duty Land Tax (SDLT) is paid when you buy a property or land over a certain price in England and Northern Ireland. In Scotland the equivalent tax is LBTT and in Wales it is LTT — this calculator covers England and Northern Ireland only.
First-time buyers pay no SDLT on the first £425,000 of a property purchase. On the portion between £425,001 and £625,000 the rate is 5%. If the property costs more than £625,000 the standard rates apply with no first-time buyer relief.
If you already own a property and are buying an additional one — such as a buy-to-let or holiday home — a 3% surcharge applies on top of the standard rates on the full purchase price.
You're a first-time buyer if you and anyone you're buying with have never owned a property anywhere in the world, including inherited property or property owned before moving to the UK. If you previously owned property but sold it and haven't owned for years, you're unfortunately not a first-time buyer for SDLT purposes — the relief applies only to those who have genuinely never owned. The relief is substantial: on a £400,000 property, a first-time buyer pays £0 whilst other buyers pay £10,000. On a £500,000 property, first-time buyers pay £3,750 versus £15,000 for others — saving £11,250. The relief tapers: between £425,000-£625,000, you pay 5% on the portion above £425,000. A £550,000 purchase costs a first-time buyer £6,250 (5% on £125,000) compared to £22,500 for standard buyers, saving £16,250. Above £625,000 the relief disappears entirely and standard rates apply. If buying jointly and one person is a first-time buyer but the other isn't, unfortunately neither qualifies for relief — both buyers must be first-time buyers. This creates tricky situations where unmarried couples might consider one person buying alone to access relief, though this has implications for ownership, mortgages, and relationship protection. The relief is claimed through your solicitor during the purchase process; you don't apply separately. It can't be combined with other reliefs like multiple dwellings relief. Some people delay buying with a partner who previously owned to preserve first-time buyer status, saving tens of thousands, though this creates legal complications around ownership and requires careful conveyancing.
The 3% surcharge applies to the entire purchase price when buying an additional residential property, regardless of the property's value. This means if you already own any property anywhere (even if mortgaged, in negative equity, or jointly owned with someone else) and buy another residential property in England or Northern Ireland, you pay standard SDLT rates plus 3% on the full purchase price. On a £300,000 buy-to-let, you pay £17,500 (£9,000 standard + £9,000 surcharge minus £1,500 relief on first £250k). On a £500,000 second home, you pay £29,500. This dramatically affects buy-to-let profitability and must be factored into investment calculations alongside the mortgage interest tax restriction introduced in recent years. There are exemptions: if selling your main residence and buying a replacement, you don't pay the surcharge if the sale completes within 36 months — though if the sale takes longer you initially pay the surcharge then reclaim it afterward. If you own commercial property but no residential property, the surcharge doesn't apply to your first residential purchase. Married couples are treated as one unit: if either spouse owns property, both pay the surcharge on additional purchases even if only one is on the deeds. Some people explore transferring existing property to an adult child to avoid the surcharge on a subsequent purchase, but this is complex with inheritance tax and capital gains tax implications requiring professional advice. The surcharge applies even to uninhabitable properties requiring renovation, caravans meeting residential definition, and houseboats in some circumstances. For companies and corporate buyers, even higher SDLT rates apply (15% on properties over £500,000 subject to certain exemptions).
Legitimate tax planning differs from illegal tax evasion. Legal SDLT savings are limited: buying property under £250,000 means no SDLT (£425,000 for first-time buyers). Buying slightly below thresholds can save substantially: a £499,000 property (£14,500 duty) costs £10,000 less SDLT than £501,000 (£15,100 duty for standard buyers), sometimes prompting negotiations to land just under thresholds. Multiple dwellings relief allows aggregating when buying six or more properties simultaneously, averaging the SDLT rate across all properties. Some people consider buying as a company to access different rates, though this introduces annual corporation tax on rental profits, complications on refinancing, and worse capital gains treatment on eventual sale — rarely worthwhile unless building a large portfolio. Married couples can't avoid the additional property surcharge through ownership structuring as they're treated as one unit. Schemes claiming to "eliminate stamp duty" through artificial sub-sales, rent-to-own structures, or creative property transfers are almost always tax avoidance (illegal) rather than tax planning (legal). HMRC actively investigates these schemes and participants face the original duty owed plus penalties potentially 100% of the duty and interest accruing from the purchase date. Several high-profile cases have resulted in buyers losing far more fighting HMRC than they saved in SDLT. Some marketed "SDLT savings schemes" involve purchasing property through companies in offshore jurisdictions; whilst legal structures exist, HMRC scrutinizes these heavily. Bottom line: pay the stamp duty. It's a substantial cost but attempting to avoid it illegitimately risks far greater financial and legal consequences. Factor SDLT into your budget from the start rather than searching for dodgy workarounds.
First £250,000: £0. Next £125,000: £0 (first-time buyer relief up to £425,000). Total SDLT: £0. Saving: £6,250 versus standard buyers who would pay 5% on £125,000. This substantial saving helps first-time buyers compete in the market and contributes toward other purchase costs like surveys and legal fees.
First £250,000: £0. Next £200,000 (£250k-£450k): 5% = £10,000. Total SDLT: £10,000. No surcharge as this is a main residence and they're not buying additionally. This £10,000 must be paid to HMRC via solicitor within 14 days of completion, so buyers need this cash available separate from deposit and moving costs.
Standard rates: First £250,000: £0. Next £50,000: 5% = £2,500. Plus 3% additional property surcharge on full £300,000 = £9,000. Total SDLT: £11,500. This significantly impacts rental yield calculations: if expecting 5% gross yield (£15,000 annual rent), the SDLT alone represents nearly a year's rent, extending the investment payback period substantially.
Budget for stamp duty alongside your deposit and other purchase costs from the start — it's typically the second-largest cost after the deposit itself. First-time buyers should verify eligibility carefully as joint purchases with someone who previously owned disqualify both buyers. If buying with a partner where one owned before, consider whether the first-time buyer purchasing alone (with non-owner as subsequent transfer once qualified) makes financial sense despite ownership complications. Time your completion strategically if possible: if selling your main residence and buying another, ensure your sale completes within 36 months to avoid the 3% surcharge, or claim a refund if it completes late. Properties spanning the £250,000, £425,000 (first-time buyers), £925,000 and £1.5m thresholds can sometimes be negotiated just below to save thousands in duty — sellers may accept £424,000 rather than £426,000 when buyers explain the £2,000 price reduction saves them £3,100 in SDLT. For buy-to-let investors, factor SDLT plus higher mortgage rates, restricted mortgage interest tax relief, and potentially capital gains tax on eventual sale into investment decisions — many marginal investments become unviable once all taxes are properly accounted. If inheriting property, SDLT doesn't apply though inheritance tax might. Ensure your solicitor submits the SDLT return and payment within 14 days of completion to avoid automatic penalties and interest charges. Keep SDLT certificates as you'll need them when selling to prove you paid duty. Scotland and Wales have different systems (LBTT and LTT respectively) with different rates and thresholds, so this calculator applies only to England and Northern Ireland purchases. Finally, rates and thresholds change periodically with budgets and government policy, so always verify current rates when budgeting for a purchase — this calculator reflects 2026 rates which may differ from earlier or later years.