Stamp Duty Land Tax (SDLT), also known as stamp duty, is a tax you pay when buying property or land in England or Northern Ireland. As one of the biggest upfront home-buying costs, it’s worth getting your head around how stamp duty works so you can build it into your budget. Here’s how to calculate how much it will cost you.

 

How does stamp duty work?

Stamp duty is a progressive tax and is charged in ‘thresholds’ or bands. The amount you’ll pay depends on the final property price and which bands the price falls into. Generally, the more expensive the property is, the more stamp duty you’ll pay. Rates also vary depending on whether you’re a first-time buyer or next-time buyer and whether it’ll be your only home, a second home or buy-to-let property.

Stamp duty needs to be paid at completion, when the property purchase is finalised. Be sure to work it into your budget alongside the other costs of buying a home.

We’ve broken down the latest rates for SDLT in England and Northern Ireland below. The Stamp Duty Land Tax (SDLT) Government webpage is another great source of information. If you’re buying a home in Scotland or Wales, you’ll pay similar taxes with different names and rates. In Scotland, you’ll pay Land and Buildings Transaction Tax (LBTT) and in Wales, you’ll pay Land Transaction Tax (LTT).

 

Stamp duty rates for first-time buyers

As of 1st April 2025, the temporary stamp duty discounts brought in by the last Conservative Government have been reduced as planned, meaning that first-time buyers will potentially pay more stamp duty. The nil-rate band at which first-time buyers start paying stamp duty is reduced from £425,000 to £300,000. The upper limit for all first-time buyer stamp duty discounts is reduced from £625,000 back to £500,000 again. If you’re buying a property worth more than £625,000, stamp duty will be charged at the standard rates for home movers below.

Stamp duty rates as of 1st April 2025:

Property price Stamp duty rate
Up to £300,000 0%
The portion between £300,001 – £500,000 5%
The portion over £500,000 No discount – home mover rates apply

 

Example:

If you’re buying a home worth £400,000, you’ll pay £5,000 in stamp duty:

  • 0% on the first portion up to £300,000 = £0
  • 5% on the remaining portion of £100,000 = £5,000

 

Stamp duty rates for home movers

As of 1st April, the nil-rate band for home movers has been reduced from £250,000 to £125,000.  There’s nothing to pay if you buy a home for less than £250,000 (or the first £250,000 of the property price). After that, you pay 5% on the next portion (up to £925,000). But, if you’ll be using the property as a second home or a buy-to-let investment, expect to pay a stamp duty surcharge on top. In the Autumn Budget, the Government announced an increase in the stamp duty surcharge for second homes of 2 percentage points, rising from 3% to 5%.

Stamp duty rates as of 1st April 2025:

Property price Stamp duty rate if it’s your only home Stamp duty rate if it’s a second home or buy-to-let property
Up to £125,000 0% 5%
The portion between £125,001 – £250,000 2% 7%
The portion between £250,001 – £925,000 5% 10%
The portion between £925,001 – £1.5m 10% 15%
The portion over £1.5m 12% 17%

 

Example:

If you’re buying a home worth £600,000, you’ll pay £20,000 in stamp duty:

  • 0% on the first portion up to £125,000 = £0
  • 2% on the next portion of £125,000 = £2,500
  • 5% on the remaining portion of £350,000 = £17,500

 

Fun fact Historically, documents had to be stamped to show that stamp duty had been paid and that documents were legally effective. Today, no stamps are needed – but it’s still an important home-buying cost to budget for.

 

Your home may be repossessed if you do not keep up repayments on your mortgage.