Stamp Duty Calculator UK 2025

How Stamp Duty Works

Stamp Duty Land Tax is a tax you pay when purchasing residential property in England and Northern Ireland above a certain price threshold. A common misconception is that stamp duty is a flat rate applied to the entire purchase price. In reality, SDLT works on a banded system, similar to income tax. Each portion of the property price that falls within a particular band is taxed at that band's rate, and you only pay the higher rates on the amount above each threshold.

For example, if you buy a property for £400,000, you pay 0% on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the remaining £150,000 (£7,500). Your total stamp duty would be £10,000. This progressive structure means the effective rate of stamp duty is always lower than the headline rate of the highest band your purchase falls into.

Current SDLT Rates

The following table shows the standard Stamp Duty Land Tax rates for residential property purchases in England and Northern Ireland from April 2025.

These rates apply to standard residential purchases. Different rates apply to first-time buyers and to additional properties such as second homes and buy-to-let investments.

First-Time Buyer Relief

If you are a first-time buyer, you benefit from a more generous nil rate band. You pay no stamp duty on the first £300,000 of a property that costs up to £500,000. On the portion between £300,001 and £500,000, you pay 5%.

This means a first-time buyer purchasing a property for exactly £300,000 pays no stamp duty at all. At £425,000, the stamp duty would be £6,250 (5% of the £125,000 above the threshold).

There is an important limit: if the property costs more than £500,000, first-time buyer relief does not apply. You would pay stamp duty at the standard rates on the entire purchase, with no enhanced nil rate band. This cliff edge means the difference between a £500,000 and a £500,001 property is significant in stamp duty terms.

Additional Property Surcharge

If you are buying a second home, holiday let, or buy-to-let investment property, you pay a 5% surcharge on the entire purchase price, on top of the standard SDLT rates. This higher surcharge rate has applied since 31 October 2024. The surcharge applies from the first pound, so there is no nil rate band for the surcharge element.

For example, on a £300,000 additional property, you would pay £5,000 in standard SDLT (2% on £125,000 plus 5% on £50,000) plus a £15,000 surcharge (5% of the full £300,000), totalling £20,000. If you sell your previous main residence within 36 months of the new purchase, you can apply to HMRC for a refund of the surcharge.

Stamp Duty Examples

The following examples illustrate how stamp duty is calculated at three different price points, using the standard rates for 2025/26.

£250,000 Property

A standard purchaser pays 0% on the first £125,000 and 2% on the remaining £125,000, giving a stamp duty bill of £2,500. A first-time buyer pays nothing (under the £300,000 nil rate threshold). An additional property buyer pays £2,500 plus a £12,500 surcharge (5% of £250,000), totalling £15,000.

£450,000 Property

At £450,000, a standard purchaser pays 0% on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the remaining £200,000 (£10,000), totalling £12,500 in stamp duty. A first-time buyer pays 0% on the first £300,000 and 5% on the remaining £150,000, giving a bill of £7,500. An additional property buyer pays £12,500 plus a £22,500 surcharge (5% of £450,000), totalling £35,000.

£950,000 Property

For a £950,000 property, the standard calculation is: 0% on the first £125,000, 2% on the next £125,000 (£2,500), 5% on the next £675,000 (£33,750), and 10% on the remaining £25,000 (£2,500), totalling £38,750. First-time buyer relief does not apply above £500,000, so the same rates are used. An additional property buyer would pay £38,750 plus a £47,500 surcharge, totalling £86,250.

Scotland and Wales

Stamp Duty Land Tax applies only to property transactions in England and Northern Ireland. If you are buying property in Scotland, you will pay Land and Buildings Transaction Tax (LBTT), which is administered by Revenue Scotland. In Wales, the equivalent tax is Land Transaction Tax (LTT), administered by the Welsh Revenue Authority.

Both LBTT and LTT have their own rate bands and thresholds, which differ from SDLT. The rates, nil rate bands, and reliefs available are set independently by the Scottish and Welsh governments respectively. If you are purchasing property in Scotland or Wales, this calculator will not give you the correct figure — you should use the relevant calculator provided by Revenue Scotland or the Welsh Revenue Authority.