Stamp Duty Calculator

How is Stamp Duty calculated?

Stamp Duty Land Tax (SDLT) is a tax paid when you purchase a property or piece of land in England and Northern Ireland. It works on a marginal basis, similar to income tax — you only pay the higher rate on the portion of the property price that falls within each band, not on the entire purchase price. For example, on a £350,000.00 property, you would pay 0% on the first £125,000.00, 2% on the next £125,000.00, and 5% on the remaining £100,000.00.

First-time buyers benefit from generous relief: no SDLT is charged on the first £300,000.00 of the purchase price, and a reduced 5% rate applies on the portion between £300,000.00 and £500,000.00. However, this relief is only available for properties costing £500,000.00 or less. If the purchase price exceeds this threshold, standard residential rates apply to the full amount with no first-time buyer discount.

Additional properties such as second homes and buy-to-let investments attract a 5% surcharge on top of the standard rates, applied to the full purchase price. This surcharge was increased from 3% to 5% in October 2024. Note that Scotland and Wales have their own property transaction taxes (LBTT and LTT respectively) with different rates and thresholds. Always check the latest HMRC guidance and consider seeking professional advice before completing a property purchase.