When you buy a home in the UK you'll almost always pay a purchase tax. In England and Northern Ireland it's called Stamp Duty Land Tax (SDLT); in Scotland it's LBTT and in Wales LTT. What you pay depends on the region, the price, and whether it's your first home or an additional/buy-to-let property. This guide sets out the clear 2026 rates, worked examples and the mistakes that catch people out.
From 1 April 2025 the 0% threshold returned to £125,000 (it had temporarily been £250,000), and first-time buyer relief returned to the £300,000 threshold.
From 31 October 2024 the surcharge on an additional home or investment rose from 3% to 5%. Plenty of older articles still show 3% — that's out of date. The rates below still apply in 2026.
Standard rates (main home, not first-time)
England and Northern Ireland, 2026. The tax is worked out in bands — each slice of the price is charged at its own rate.
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5m | 12% |
First-time buyers (First-Time Buyers' Relief)
| Portion of price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 – £500,000 | 5% |
If the price is above £500,000, first-time buyer relief no longer applies and you pay the standard rates.
Second home or buy-to-let (+5%)
If buying the property means you'll own more than one, a +5% surcharge (the Additional Dwelling Supplement) is added to every band:
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 – £250,000 | 7% |
| £250,001 – £925,000 | 10% |
| £925,001 – £1.5m | 15% |
| Over £1.5m | 17% |
There are exceptions: if you're replacing your main residence and sell the old one within 36 months, the surcharge can often be reclaimed.
Three worked examples
1. Main home, not first-time — £350,000
- £0–£125,000 @ 0% = £0
- £125,001–£250,000 @ 2% = £2,500
- £250,001–£350,000 @ 5% = £5,000
Total: £7,500
2. First-time buyer — £320,000
- £0–£300,000 @ 0% = £0
- £300,001–£320,000 @ 5% = £1,000
Total: £1,000 (within first-time buyer relief).
3. Second home / investment — £350,000
- £0–£125,000 @ 5% = £6,250
- £125,001–£250,000 @ 7% = £8,750
- £250,001–£350,000 @ 10% = £10,000
Total: £25,000 (compared with £7,500 for the same home as a main residence).
The same £350,000 home: £7,500 of tax as your main home — or £25,000 as an investment. The surcharge changes everything.
Scotland and Wales work differently
Scotland uses LBTT and Wales uses LTT, with their own thresholds and rates. In Scotland, for example, the 0% band usually reaches £145,000, and first-time buyer relief means a higher 0% threshold. Both have their own surcharge for additional properties. If you're buying in Scotland or Wales, always confirm the exact rates with the official source before you commit.
Common mistakes
- Calculating it on the whole price. The tax applies in bands, not to the full sum — the single most common error.
- Buying with a partner who already owns a home. The +5% surcharge then often applies to the whole purchase, even if it's your first home.
- Forgetting to budget for it. Your mortgage doesn't cover this tax — you need it in cash, alongside your deposit and legal fees.
- Overlooking lease extensions. A long lease extension can also attract SDLT if the figure is above the threshold.
Before you make an offer we'll prepare a personalised Stamp Duty calculation for your price, region and status (first-time or not). We check whether you qualify for relief, run alternatives (e.g. £295k vs £305k as a first-time buyer) and coordinate with solicitors and brokers so there are no surprises before exchange.
Quick reference (England / NI, 2026)
- First-time buyer: 0% to £300k, 5% £300–500k, no relief above £500k.
- Standard purchase: 0% to £125k, then 2% / 5% / 10% / 12%.
- Second home / BTL: +5% on top of every band.
Rates can change at government budgets — always check the latest before you commit, or have an agent who'll flag it for you. How to plan your whole home-buying budget →