Buying a property in the UK isn’t just about saving for a deposit — stamp duty can add thousands to your total cost overnight.
Many guides still show outdated thresholds from before 2025. That means buyers relying on them are underestimating their tax bill in 2026.
If you’re searching “how much is stamp duty in UK”, you want a clear answer — not confusing tax tables. Below you’ll find the accurate 2026 rates, step-by-step calculations, first-time buyer rules with hidden pitfalls, and real examples at £300k, £400k, and £500k+.
What Is Stamp Duty in the UK?
Stamp Duty Land Tax (SDLT) is a progressive tax paid when you buy property or land in England and Northern Ireland.
The key thing to understand is that you don’t pay one flat rate. Different portions of your property price fall into different bands, each taxed at a different rate. The higher the price, the more bands apply.
How Much Is Stamp Duty in the UK (2026 Rates)
As of 1 April 2025 — still the current rules in 2026 — the temporary cuts ended and thresholds reverted to previous levels. No further changes have been announced for 2026.
The official SDLT rates are published on GOV.UK and confirmed as follows:
| Property Price Band | Standard Rate (Main Home) | First-Time Buyer | Additional Property (+5%) |
|---|---|---|---|
| £0 – £125,000 | 0% | 0% | 5% |
| £125,001 – £250,000 | 2% | 0% | 7% |
| £250,001 – £300,000 | 5% | 0% | 10% |
| £300,001 – £500,000 | 5% | 5% | 10% |
| £500,001 – £925,000 | 5% | ❌ Relief lost | 10% |
| £925,001 – £1.5M | 10% | 10% | 15% |
| Above £1.5M | 12% | 12% | 17% |
Post-2025 Reality: Why Stamp Duty Is Higher Now
The temporary relief introduced in September 2022 expired on 31 March 2025. What changed:
- Tax-free band dropped from £250,000 to £125,000
- First-time buyer relief threshold has been reduced significantly
- More buyers now pay tax earlier
Buying a home in 2026 costs more in stamp duty than it did in 2024. Many buyers are still working with outdated figures and discover the difference only when their solicitor confirms the bill.
How Stamp Duty Is Calculated (Step-by-Step)
Stamp duty uses a progressive system — each portion of your property price is taxed separately. Think of it like income tax applied to purchase price.
1: £300,000 property (standard buyer)
- £0–£125,000 → 0% = £0
- £125,001–£250,000 → 2% = £2,500
- £250,001–£300,000 → 5% = £2,500
- Total SDLT = £5,000
2: £400,000 property
- First £125k → £0
- Next £125k → £2,500
- Remaining £150k → £7,500
- Total SDLT = £10,000
3: £600,000 property
- £125k → 0%
- £125k → 2% = £2,500
- £350k → 5% = £17,500
- Total SDLT = £20,000
For a quick estimate before any of these steps, MoneyHelper runs a free SDLT calculator that reflects the current 2026 rates and adjusts for buyer type automatically.
Stamp Duty for First-Time Buyers (2026)
First-time buyers receive relief that reduces or eliminates stamp duty, but the thresholds have tightened considerably from April 2025.
Current rules:
- 0% up to £300,000
- 5% from £300,001 to £500,000
- No relief above £500,000
The £500K Cliff Edge (Critical)
This is one of the most expensive mistakes buyers make.
Buy at exactly £500,000 → relief applies, total SDLT = £10,000. Buy at £500,001 → all relief is lost. Standard rates apply from £125,000 upward, pushing the total bill to around £15,000.
That single extra pound triggers a £5,000 tax increase. Anyone looking at properties near this boundary should run the numbers before making an offer — not after.
This cliff edge also interacts with other costs buyers need to plan for, including income tax obligations on rental income if the purchase is a future investment rather than a primary residence.
Stamp Duty for Second Homes (2026)
Buying an additional property — a second home, buy-to-let, or holiday property — attracts a 5% surcharge on every band.
Example: £300,000 second home
- Standard SDLT = £5,000
- 5% surcharge on full purchase price = £15,000
- Total = £20,000
That’s four times what a standard buyer pays on the same property. Landlords and property investors calculating yield need to factor the full acquisition cost — not just the purchase price — into any analysis.
Non-UK Resident Stamp Duty (2% Surcharge)
Non-UK residents pay an extra 2% on top of all applicable bands. This applies if you spend fewer than 183 days in the UK in the 12 months before your purchase.
On a £300,000 property, that’s an additional £6,000 on top of whatever other rates apply.
The 36-Month Refund Rule (Often Missed)
Buy a new home before selling your previous one, and you’ll initially pay higher rates — because you technically own two properties at the point of purchase. But if you sell your previous home within 36 months, you can reclaim the surcharge you paid.
Many buyers pay the extra stamp duty, complete the sale of their old home, and then simply forget to claim the refund. It’s not automatic — you have to apply. HMRC’s website handles the claim, and the 36-month window runs from the date of completion on the new purchase.
When Do You Pay Stamp Duty?
Stamp duty must be paid within 14 days of completion. In almost all cases, your solicitor handles this on your behalf as part of the conveyancing process. Late payment attracts penalties and interest.
Stamp Duty Cheat Sheet
| Scenario | Stamp Duty |
|---|---|
| £300k home (standard buyer) | £5,000 |
| £400k home (standard buyer) | £10,000 |
| £300k home (first-time buyer) | £0 |
| £300k second home | £20,000 |
Common Mistakes to Avoid
- Treating stamp duty as a flat rate (it isn’t)
- Forgetting the 5% second home surcharge applies across all bands
- Missing the £500k cliff edge as a first-time buyer
- Using pre-April 2025 rates, which are now outdated
- Not claiming a refund after selling within 36 months
Expert Tips to Reduce Stamp Duty
- Stay below key thresholds — £300k (first-time buyer) and £500k matter most
- Use first-time buyer relief strategically; small savings on purchase price near £300k can eliminate the bill entirely
- Time buying and selling to avoid the surcharge — the 36-month rule gives flexibility
- Always calculate your total SDLT before making an offer, not after
The stamp duty bill interacts with other property costs, including potential capital gains tax when you eventually sell. Factoring both into long-term planning matters, particularly for buyers who may let the property or use it as an investment.
Stamp Duty in Scotland & Wales
SDLT applies only to England and Northern Ireland.
- Scotland uses Land and Buildings Transaction Tax (LBTT), with its own bands and thresholds
- Wales uses Land Transaction Tax (LTT) — Wales currently offers lower rates than England for properties under £400,000, partly due to its £225,000 nil-rate band
Rates in both nations are set independently and don’t mirror English SDLT changes automatically.
Conclusion
Understanding how much stamp duty is in the UK in 2026 requires knowing a few key figures: the tax-free threshold is now £125,000 for standard buyers; first-time buyers only receive relief up to £300,000; buying above £500,000 removes all first-time buyer relief; and second homes attract a 5% surcharge across every band.
Missing any of these rules — particularly the £500k cliff edge or the 36-month refund — can easily cost thousands. Calculate your full tax liability before committing to a purchase.
FAQs
Q. How much is stamp duty on a £300k house in the UK (2026)?
Stamp duty on a £300,000 property is £5,000 for a standard buyer, £0 for a first-time buyer, and around £20,000 for a second-home buyer.
This is based on 2026 SDLT rates, where standard buyers pay 0% up to £125,000, 2% up to £250,000, and 5% on the remaining amount, with a 5% surcharge applied to additional properties.
Q. How much is stamp duty on £400k in the UK?
Stamp duty on a £400,000 property is £10,000 for a standard buyer and £5,000 for a first-time buyer.
First-time buyers pay 0% up to £300,000 and 5% on the remaining £100,000, while standard buyers are taxed progressively starting from £125,000.
Q. Do first-time buyers pay stamp duty in the UK in 2026?
First-time buyers pay 0% stamp duty up to £300,000 in 2026.
They only start paying 5% on the portion between £300,001 and £500,000. If the property exceeds £500,000, all first-time buyer relief is removed.
Q. What happens if a first-time buyer purchases over £500,000?
If a first-time buyer buys a property above £500,000, they lose all stamp duty relief.
They must pay standard SDLT rates starting from £125,000, which can significantly increase the total tax bill.
Q. When do you pay stamp duty in the UK?
Stamp duty must be paid within 14 days of completing the property purchase.
Your solicitor usually submits the return and pays HMRC on your behalf, but missing the deadline can result in penalties and interest.
Q. Can you get a refund on stamp duty in the UK?
Yes, you can get a stamp duty refund if you sell your previous main residence within 36 months of buying a new one.
This allows you to reclaim the additional 5% surcharge paid on second-home purchases.
Q. Do second-home buyers pay more stamp duty in 2026?
Yes, second-home buyers pay an extra 5% surcharge on top of standard stamp duty rates.
This significantly increases the total cost—for example, a £300,000 second home can result in around £20,000 in stamp duty.
Q. Is stamp duty different for non-UK residents?
Yes, non-UK residents pay an additional 2% surcharge on top of standard rates.
This applies if you spend fewer than 183 days in the UK within 12 months.
For more on UK property taxes, buying costs, and how tax rules affect home purchases, visit Pure Magazine.
