Understand how much SDLT you will pay on a residential property purchase in England or Northern Ireland. Factor in first-time buyer relief, additional property surcharge, and non-UK resident surcharge for 2026/27.
Stamp Duty Land Tax (SDLT) is a tax paid when you buy residential or commercial property in England and Northern Ireland. The tax is calculated on a progressive slab basis — like income tax. You pay 0% on the first slice, then higher percentages on each subsequent slice, up to a maximum rate.
You must pay SDLT within 14 days of completion. Your conveyancer or solicitor normally handles the submission to HM Revenue and Customs (HMRC). The amount varies dramatically depending on your buyer status: first-time buyers get relief on purchases up to £500,000, but that relief disappears entirely at £500,001. Second homes and buy-to-let properties face an additional 5% surcharge on each band.
This table shows how SDLT is calculated on each slice of your purchase price. You only pay the higher rate on the portion above each threshold.
| Band | Price range | Rate applied | Your price in band | SDLT for band |
|---|
These bands apply from 1 April 2025 and continue through 2026/27. They apply to standard residential purchases for owner-occupiers.
| Price slice | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| £1,500,001+ | 12% |
First-time buyers purchasing a residential property for at least £175,000 and under £500,000 can claim relief on SDLT. The relief works by applying a lower band structure instead of the standard rates.
Critical threshold: £500,001. If your purchase price exceeds £500,000, you lose all first-time buyer relief and pay the full standard rates. This is a cliff edge. Many first-time buyers negotiate hard to stay under £500k to preserve relief — you could save £10,000 or more.
| FTB relief: price slice | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| £500,001+ (relief not available) | Standard rates apply |
At £500,000, a first-time buyer pays just 10,000 in SDLT. At £500,001, they lose all relief and pay 15,500+ — a £5,500 jump. Negotiating hard to stay below £500k can be worth it. If you are a few thousand over, even a small discount from the seller is money well spent.
If this is not your main home — you are buying a second home, buy-to-let property, or investing in a rental — you pay an additional 5% on top of each standard band. For example, the first band becomes 5% instead of 0%.
The 3-year replacement rule: if you sell your previous main home within 36 months of buying the additional property, you can reclaim the 5% surcharge. This matters for people trading up or downsizing.
| Standard band | Standard rate | With +5% surcharge |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| £1,500,001+ | 12% | 17% |
If you are not a UK resident, you pay an additional 2% on top of each standard band (in addition to any other surcharges). Non-resident is defined for SDLT purposes by your residence status for tax. Non-UK residents buying additional properties pay both the 5% and 2% surcharge = 7% total on each band.
You must pay SDLT within 14 days of completion. Your conveyancer or solicitor will:
If you do not pay on time, interest and penalties apply. Most transactions go smoothly because conveyancers handle it as routine.
SDLT is calculated on each band separately. You do not pay the 12% rate on your entire purchase price. You pay 0% on the first £125,000, 2% on the next £125,000, 5% on the next £675,000, and so on. This is how tax brackets work — only the slice above the threshold is taxed at the higher rate.
Scotland abolished SDLT and replaced it with Land and Buildings Transaction Tax (LBTT) in 2015. Wales abolished SDLT and replaced it with Land Transaction Tax (LTT) in 2018. Both have different band structures and thresholds. If you are buying in Scotland or Wales, use their dedicated calculators — the rules differ significantly.
First-Time Buyer Guide — deposit, LISA, SDLT and mortgage flow — Mortgage calculator — affordability, repayment and overpayment — Compound interest — how your pot grows — ISA vs GIA — tax on your investments — Tax calculator — income tax, NI, student loans.
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