How Much Is Stamp Duty in 2026? UK Bands, First-Time Buyers, and Surcharge

How Much Stamp Duty Will You Pay in 2026?

The amount of stamp duty you pay in 2026 depends on three things: where the property is, whether you're a first-time buyer, and whether you already own another home. In England and Northern Ireland, you pay 0% up to £125,000, 2% on the slice up to £250,000, 5% up to £925,000, 10% up to £1.5 million, and 12% above that. First-time buyers pay no stamp duty up to £300,000, then 5% on the slice up to £500,000. If you're buying a second home or a buy-to-let, add 5% to every band as the additional property surcharge. Scotland uses a different system called LBTT, and Wales uses LTT, both with their own rates. Run any of them through the Stamp Duty Calculator to see your exact bill in seconds.

At a Glance

• England and NI: 0% to £125k, 2% to £250k, 5% to £925k, 10% to £1.5m, 12% above

• First-time buyers (England and NI only): no stamp duty up to £300k, 5% on £300k to £500k

• Additional property surcharge: 5% on every band, applied if you already own a home

• Scotland (LBTT): different bands plus a flat 8% additional dwelling supplement

• Wales (LTT): different bands, no first-time buyer relief, additional property surcharge starts at £180k

• Rates last changed 1 April 2025 - no further changes announced for 2026

What Stamp Duty Actually Is

Stamp duty is the tax you pay when you buy a property in the UK. The full name is Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales. It's calculated on the purchase price and paid within 14 days of completion. Your solicitor or conveyancer normally handles the payment.

The system is banded, which means you only pay each rate on the slice of the price within that band, not on the whole property price. This trips up most buyers. A £400,000 home doesn't get charged 5% on the entire amount. It gets charged 0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £150,000. Total: £10,000.

England and Northern Ireland Stamp Duty Rates 2026

The rates that came in on 1 April 2025 are still in force. There are no announced changes for 2026.

*First-time buyer relief only applies if the total purchase price is £500,000 or less. Above £500,000, first-time buyers pay the standard rates on the whole price.

Worked example: £400,000 home, standard buyer

• 0% on the first £125,000 = £0

• 2% on the next £125,000 (£125,001 to £250,000) = £2,500

• 5% on the next £150,000 (£250,001 to £400,000) = £7,500

• Total stamp duty: £10,000

Worked example: £400,000 home, first-time buyer

• 0% on the first £300,000 = £0

• 5% on the next £100,000 (£300,001 to £400,000) = £5,000

• Total stamp duty: £5,000

A first-time buyer saves £5,000 on a £400,000 home. That's the relief working as intended.

First-Time Buyer Relief: The Rules That Catch People Out

First-time buyer relief in England and Northern Ireland is generous, but it has hard cut-offs that catch people out.

You qualify if you've never owned a residential property anywhere in the world. Inheriting a property counts as ownership. Owning a flat with a sibling counts. Buying with a non-first-time-buyer partner means you both lose the relief.

The big trap is the £500,000 ceiling. If the property costs £500,001, you lose first-time buyer relief entirely and pay the standard rates on the whole price. That £1 over the threshold can cost you over £6,000 in tax. We've seen first-time buyers in London reluctantly negotiate sellers down from £505,000 to £499,950 to stay under the cliff edge. The seller loses £5,050; the buyer saves over £6,000 in tax.

A first-time buyer couple in Birmingham bought their first flat at £315,000 in February 2026. Standard SDLT would have been £5,750. Under first-time buyer relief, they paid £750. The £5,000 saving covered their entire moving budget.

Additional Property Surcharge: 5% on Top

If you already own a home and you're buying another one (a buy-to-let, holiday home, or a second residence), you pay an extra 5% on every band. This was 3% before 31 October 2024. The Autumn Budget that day raised it to 5% with effect from the next day - one of the steepest single-day increases in stamp duty history.

Worked example: £300,000 buy-to-let

• 5% on the first £125,000 = £6,250

• 7% on the next £125,000 = £8,750

• 10% on the next £50,000 = £5,000

• Total stamp duty: £20,000

The same property bought as a primary residence by a standard buyer would cost £5,000. The surcharge alone is £15,000 on a £300,000 BTL.

The surcharge applies even if the additional property is in another country, even if it's a holiday home you rarely use, and even if you're buying it in your spouse's name. There are limited exemptions (replacement of main residence, mixed-use property, properties under £40,000) but the rules are tight.

Scotland: Land and Buildings Transaction Tax (LBTT)

Scotland has its own system, run by Revenue Scotland. The bands are different from England and the additional property rule works completely differently.

First-time buyers in Scotland get a relief of up to £600 - the rate is 0% up to £175,000 instead of £145,000. Useful but much less generous than the English equivalent.

The big difference is the additional dwelling supplement (ADS). In Scotland, ADS is a flat 8% on the full purchase price, not a marginal rate added to bands. Buy a £250,000 second home in Edinburgh and you pay £2,100 LBTT plus £20,000 ADS. The ADS alone is more than the entire LBTT bill.

This catches a lot of investors. In England, the surcharge on a £250,000 BTL adds £12,500 (5% of £250k). In Scotland, ADS on the same purchase adds £20,000 (8% of £250k). Investors moving across the border often miscalculate.

Wales: Land Transaction Tax (LTT)

Wales uses LTT, run by the Welsh Revenue Authority. Wales has no first-time buyer relief at all. The rates changed on 11 December 2024 and are still in force in 2026.

The 5% surcharge on additional properties starts at £180,000 in Wales, lower than the £225,000 nil-rate band for primary residences. That makes Wales one of the harshest places in the UK for buy-to-let investors at the lower end of the market.

How to Calculate Your Stamp Duty in Under 30 Seconds

The fastest way to get your exact bill is the free Stamp Duty Calculator on ToolsForTasks. It handles all three nations, first-time buyer relief, and the additional property surcharge, with the 2025/26 rates baked in.

To use it:

1. Pick the country (England and NI, Scotland, or Wales)

2. Enter the purchase price

3. Tick the first-time buyer box if it applies (England, NI, Scotland only)

4. Tick the additional property box if you own another home

5. Read the band-by-band breakdown

The whole thing takes less than 30 seconds. The calculator runs in your browser, so no data is sent anywhere.

Common Mistakes That Cost Buyers Money

Forgetting the surcharge applies to overseas property. If you own a flat in Spain and buy your first UK home, you're treated as an additional property buyer in the UK. The 5% surcharge applies. You pay no SDLT on the Spanish property, but the UK surcharge stings.

Assuming relief applies above the cap. First-time buyer relief in England disappears entirely above £500,000. A £510,000 home as a first-time buyer costs £5,500 in stamp duty. A £499,000 home costs £0. The cliff edge is real.

Forgetting LBTT and LTT exist. Buyers moving from England to Scotland or Wales sometimes use English rates by mistake and budget incorrectly by tens of thousands.

Missing the 14-day deadline. Stamp duty is due within 14 days of completion. Late filing penalties start at £100 and escalate. Your conveyancer should handle it, but check.

Not budgeting for the surcharge before exchange. A £300,000 BTL with a 25% deposit means £75,000 deposit plus £20,000 surcharge plus legal fees plus mortgage fees. The total cash needed at exchange is closer to £100,000. Investors who plan around the deposit alone get caught short.

Frequently Asked Questions

Has stamp duty changed in 2026?

No. The current rates came in on 1 April 2025 and there are no announced changes for 2026. The Autumn 2025 Budget did not change SDLT rates, though it's worth checking before you complete in case anything is announced in the Spring Statement.

Do I pay stamp duty if I'm a first-time buyer?

In England and Northern Ireland, no, up to £300,000. Above that, you pay 5% on the slice between £300,001 and £500,000, with no relief at all if the property costs more than £500,000. In Scotland, you get a small relief (0% up to £175,000 instead of £145,000). In Wales, there's no first-time buyer relief at all - you pay standard LTT.

How is stamp duty calculated on a £500,000 home in 2026?

For a standard buyer in England or NI, it's £15,000. The breakdown: 0% on the first £125,000 (£0), 2% on the next £125,000 (£2,500), 5% on the next £250,000 (£12,500). For a first-time buyer the same property costs £10,000 (0% on £300,000 plus 5% on £200,000). For an additional property buyer it's £40,000 (£15,000 standard plus £25,000 surcharge). Use the Stamp Duty Calculator for any other price.

What is the additional property surcharge?

A 5% extra rate added to every band of stamp duty if you already own another residential property when you buy. It applies in England and NI. Scotland has the equivalent ADS at a flat 8% of the full price, and Wales has higher LTT bands for additional properties starting at £180,000. The surcharge increased from 3% to 5% on 31 October 2024.

Do I pay stamp duty on the whole property price or just one band?

Only the slice within each band, not the whole price. This is the most common misunderstanding. A £300,000 home isn't taxed at 5% (£15,000). It's taxed band by band: 0% on £125k + 2% on £125k + 5% on £50k = £5,000.

When do I have to pay stamp duty?

Within 14 days of completion. Your solicitor or conveyancer normally handles the payment as part of the legal process. You'll need to have the cash available at completion - it's not deductible from the mortgage.

Can I add stamp duty to my mortgage?

No. Stamp duty must be paid in cash at completion. Some buyers borrow more on the mortgage to free up cash for stamp duty, but the payment itself can't be financed by the lender.

Final Thoughts

Stamp duty is the single largest avoidable cost in most property purchases. A first-time buyer who ignores the £500,000 cliff edge can lose £5,000+. A buy-to-let investor who forgets the 5% surcharge can be £15,000-£30,000 short on completion day. Use the free Stamp Duty Calculator before you make an offer, before you exchange, and before you sign anything. It takes 30 seconds and tells you exactly what you'll owe.

If you're buying property for the first time, the calculator pairs well with the Mortgage Calculator for working out monthly repayments and the Compound Interest Calculator for projecting deposit savings. All three are free, work in your browser, and don't need an account. Browse the full directory of free financial tools for the rest.