Stamp Duty — properly called Stamp Duty Land Tax (SDLT) in England — is one of the largest upfront costs of buying property. On a typical £300,000 home purchase, the bill is £5,000. On a £500,000 buy-to-let, it is £27,500. Getting the calculation wrong — especially by missing the first-time buyer relief or the additional property surcharge — can leave buyers short at completion.
This hub covers every major stamp duty scenario for 2026/27, including SDLT in England, LBTT in Scotland, and LTT in Wales.
Which Property Tax System Applies to You?
The term “stamp duty” is colloquially used for all UK property taxes, but three different systems operate:
| Location | Tax name | Administered by |
|---|---|---|
| England and Northern Ireland | Stamp Duty Land Tax (SDLT) | HMRC |
| Scotland | Land and Buildings Transaction Tax (LBTT) | Revenue Scotland |
| Wales | Land Transaction Tax (LTT) | Welsh Revenue Authority |
Always use the correct system for your purchase location. SDLT calculators give wrong answers for Scottish and Welsh properties.
SDLT Rates 2026/27 — England and Northern Ireland
Standard Residential Rates
| Purchase price band | SDLT rate | Tax on this band |
|---|---|---|
| Up to £125,000 | 0% | £0 |
| £125,001 – £250,000 | 2% | Up to £2,500 |
| £250,001 – £925,000 | 5% | Up to £33,750 |
| £925,001 – £1,500,000 | 10% | Up to £57,500 |
| Above £1,500,000 | 12% | — |
SDLT is calculated on each band separately, not on the full purchase price at one rate.
Worked Examples — Standard Rate
| Purchase price | SDLT calculation | Total SDLT |
|---|---|---|
| £200,000 | £0 + (£75,000 × 2%) | £1,500 |
| £300,000 | £0 + £2,500 + (£50,000 × 5%) | £5,000 |
| £400,000 | £0 + £2,500 + (£150,000 × 5%) | £10,000 |
| £500,000 | £0 + £2,500 + (£250,000 × 5%) | £15,000 |
| £750,000 | £0 + £2,500 + £33,750 + (£75,000 × 5%) | Wait — let’s be precise: |
| £750,000 | 0% on £125k + 2% on £125k + 5% on £500k | £27,500 | | £1,000,000 | 0% + £2,500 + £33,750 + (£75,000 × 10%) | £43,750 |
First-Time Buyer SDLT Relief 2026/27
First-time buyers in England pay reduced SDLT if the purchase price is £625,000 or less:
| Purchase price band | First-time buyer rate |
|---|---|
| Up to £425,000 | 0% |
| £425,001 – £625,000 | 5% |
| Above £625,000 | No relief — full standard rates apply |
First-Time Buyer vs Standard Rate Comparison
| Purchase price | Standard SDLT | First-time buyer SDLT | Saving |
|---|---|---|---|
| £200,000 | £1,500 | £0 | £1,500 |
| £300,000 | £5,000 | £0 | £5,000 |
| £425,000 | £11,250 | £0 | £11,250 |
| £500,000 | £15,000 | £3,750 | £11,250 |
| £625,000 | £21,250 | £10,000 | £11,250 |
| £626,000 | £21,300 | £21,300 | £0 — no relief |
The maximum saving is £11,250 — this applies on properties priced between £425,000 and £625,000. Above £625,000, no relief is available and the buyer pays standard rates on the full price.
Qualifying conditions: Both buyers in a joint purchase must be first-time buyers. A first-time buyer is someone who has never previously owned residential property anywhere in the world.
The 3% Additional Property Surcharge
Anyone buying a second residential property — whether a buy-to-let, a holiday home, or an additional home — pays an extra 3% on the full purchase price, on top of the standard SDLT rates.
SDLT with 3% Surcharge
| Purchase price | Standard SDLT | 3% surcharge | Total SDLT |
|---|---|---|---|
| £150,000 | £0 | £4,500 | £4,500 |
| £200,000 | £1,500 | £6,000 | £7,500 |
| £250,000 | £2,500 | £7,500 | £10,000 |
| £300,000 | £5,000 | £9,000 | £14,000 |
| £400,000 | £10,000 | £12,000 | £22,000 |
| £500,000 | £15,000 | £15,000 | £30,000 |
When the Surcharge Applies
The 3% surcharge applies if:
- You already own a residential property anywhere in the world
- You are buying in addition to your main residence (not replacing it)
- The property is in England, Scotland (different rate — see below), or Wales (different rate)
Reclaiming the Surcharge
If you buy a new main home before selling your old one, you pay the 3% surcharge at completion. If you sell the old property within 36 months, you can claim a full refund of the surcharge from HMRC. The refund claim must be made within 12 months of the sale of the old property.
See: Stamp Duty Second Home Surcharge
LBTT Rates 2026 — Scotland
Scotland uses Land and Buildings Transaction Tax (LBTT), not SDLT. The rates and thresholds differ materially.
Standard LBTT Rates
| Purchase price band | LBTT rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 – £250,000 | 2% |
| £250,001 – £325,000 | 5% |
| £325,001 – £750,000 | 10% |
| Above £750,000 | 12% |
LBTT First-Time Buyer Relief
First-time buyers in Scotland pay 0% on the first £175,000 (instead of £145,000).
LBTT Additional Dwelling Supplement (ADS)
Scotland’s surcharge for additional properties is 6% — higher than England’s 3%.
See: LBTT vs Stamp Duty Scotland and Buying Property in Scotland Guide
LTT Rates 2026 — Wales
Wales uses Land Transaction Tax (LTT), also distinct from SDLT.
Standard LTT Residential Rates
| Purchase price band | LTT rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Wales has no separate first-time buyer LTT relief. The higher zero-rate threshold (£225,000 vs England’s £125,000) provides some equivalent benefit for lower-value purchases.
Wales’s additional property surcharge is 4%.
See: Land Transaction Tax Wales Guide
Stamp Duty and Buying Costs: The Full Picture
Stamp Duty is one of several upfront costs buyers must budget for. It is often the largest, but not the only one.
| Cost | Typical range | Notes |
|---|---|---|
| Stamp Duty / SDLT | £0–£30,000+ | Depends on price and buyer status |
| Solicitor / conveyancing fees | £1,500–£3,000 | Higher for complex transactions |
| Survey | £400–£1,500 | Level 2 (homebuyer report) or Level 3 (full structural) |
| Mortgage arrangement fee | £0–£2,000 | Often added to mortgage |
| Mortgage valuation | £0–£500 | Often free with competitive deals |
| Removal costs | £500–£2,000 | Depends on volume and distance |
| Total beyond deposit | £5,000–£15,000+ | Before Stamp Duty |
On a £300,000 purchase as a first-time buyer, total upfront costs beyond the deposit are typically £7,000–£12,000. For a home mover, add £5,000 in Stamp Duty. For a buy-to-let investor, add £14,000.
See: True Cost of Buying a House UK and Home Buying Costs Calculator
Stamp Duty Guides in This Cluster
| Guide | What it covers |
|---|---|
| Stamp Duty Rates 2026/27 | Full SDLT rate tables, thresholds and examples |
| Stamp Duty Second Home Surcharge | 3% surcharge rules, reclaim process |
| LBTT vs Stamp Duty Scotland | Scotland’s property tax system explained |
| Land Transaction Tax Wales Guide | Wales’s LTT rates and rules |
| Buying Property in Scotland Guide | Full Scottish purchase process |
| True Cost of Buying a House UK | All upfront costs combined |
| Home Buying Costs Calculator | Total cost estimator |
| Buy-to-Let Hub | BTL Stamp Duty in context of full investment |
For the broader mortgage picture, return to Mortgages & Property.