In 2026, buying a home in England or Northern Ireland means Stamp Duty Land Tax (SDLT) starts at 0% up to £125,000, then 2% to £250,000, 5% to £925,000, 10% to £1.5m and 12% above that. First-time buyers pay nothing up to £300,000 and 5% on the slice from £300,001 to £500,000 — but get no relief at all on homes over £500,000. These thresholds dropped on 1 April 2025, so most buyers now pay more than they would have a year earlier. Buy an additional property and a 5% surcharge sits on top.
Stamp duty is often the biggest single cost of moving after the deposit itself, and the rules changed materially in 2025. This guide sets out exactly what you will pay in 2026, how first-time buyer relief works now, and where the traps are — with worked examples so you can see the real numbers rather than guess.
Stamp duty rates in 2026: the standard bands
SDLT is a “slice” tax, not a “slab” tax. You do not pay one rate on the whole price; each portion of the price is taxed at the rate for that band, like income tax. So on a £300,000 home you pay 0% on the first £125,000, 2% on the next £125,000 and 5% only on the final £50,000. The rates below apply to your main home in England and Northern Ireland from 1 April 2025 onwards, and remain in force in 2026.
| Portion of purchase price | Standard rate (main home) | Additional property rate |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5m | 10% | 15% |
| Above £1.5m | 12% | 17% |
What changed on 1 April 2025 — and why you pay more
The temporary higher thresholds that ran from September 2022 ended on 31 March 2025, and the bands reverted to their previous, lower levels. Two things got worse for buyers in 2026 as a result. First, the nil-rate threshold for everyone fell from £250,000 back down to £125,000, so the 2% band bites earlier and a typical mover pays an extra £2,500. Second, first-time buyer relief was trimmed: the point at which first-timers start paying dropped from £425,000 to £300,000, and the maximum price on which any relief can be claimed fell from £625,000 to £500,000.
Nothing about these figures is a forecast — they are the current, confirmed rules. There was no reversal in 2026, so if you are budgeting for a purchase this year, use the post-April-2025 numbers throughout. The practical effect is that the tax-free window has narrowed for everyone, and first-time buyers in higher-priced areas — London and the South East especially — feel it most, because a larger share of their purchase now falls into the paying bands.
It is worth being clear about what did not change. The percentage rates within each band stayed the same; it is the thresholds that moved. So the arithmetic is identical to before — you are simply crossing into the taxed bands at lower prices. That distinction matters when you read older guides written before April 2025: the method still works, but any example built on the £250,000 or £425,000 thresholds is now out of date.
First-time buyer relief in 2026
If you and anyone else buying with you have never owned a home anywhere in the world, and the property will be your only or main residence, you can claim first-time buyer relief. In 2026 that means:
- 0% on the portion up to £300,000
- 5% on the portion from £300,001 to £500,000
- No relief at all if the price is above £500,000 — you then pay the standard rates on the whole purchase
That last point is a genuine cliff-edge, not a slice. Buy at £500,000 and a first-time buyer pays £10,000. Buy at £500,001 and relief vanishes entirely, so the bill jumps to £15,000 — a £5,000 penalty for a single extra pound. If you are a first-time buyer near that line, it can pay to negotiate under £500,000.
Worked examples: a £300,000 home
The clearest way to see the difference is to run the same £300,000 purchase through three buyer types.
A home mover (not a first-time buyer): 0% on the first £125,000, 2% on the next £125,000 (£2,500), and 5% on the final £50,000 (£2,500). Total SDLT: £5,000.
A first-time buyer: the whole £300,000 falls within the 0% relief band. Total SDLT: £0 — a £5,000 saving versus the mover.
A buyer of an additional property (say, a second home or buy-to-let): the 5% surcharge applies to every band, so 5% on the first £125,000 (£6,250), 7% on the next £125,000 (£8,750) and 10% on the final £50,000 (£5,000). Total SDLT: £20,000.
The gap between those three numbers — £0, £5,000 and £20,000 on exactly the same house — is the single most important thing to understand about SDLT. Your status as a buyer matters as much as the price tag. It is also why it pays to establish, early and in writing, which category you fall into before you make an offer, because the tax can swing your total moving budget by five figures.
One more example is worth running, because it catches people out: a first-time buyer purchasing at £500,000 pays 0% on the first £300,000 and 5% on the next £200,000, giving £10,000. Nudge the price to £500,001 and the relief disappears completely, so the same buyer now pays the standard rates on the whole lot — £15,000. That £5,000 jump for one extra pound is the clearest argument there is for keeping an offer just under a threshold where you can.
The higher rate for second homes and buy-to-let
If you buy an additional residential property — a second home, a holiday let or a buy-to-let — and you already own another, a surcharge applies on top of the standard rates. That surcharge rose from 3% to 5% on 31 October 2024, and remains at 5% throughout 2026. It applies to the whole price from the first pound, which is why the numbers get large quickly, as the £20,000 example above shows.
There is a common trap for movers here: if you buy your new home before selling your old one, you can be treated as owning two properties and charged the surcharge. If you then sell your previous main home within 36 months, you can usually reclaim it from HMRC — but you have to fund the extra up front and apply for the refund. Non-UK residents pay a further 2% surcharge on top of everything else.
Scotland and Wales: different taxes entirely
SDLT only covers England and Northern Ireland. If you are buying in Scotland you pay Land and Buildings Transaction Tax (LBTT) instead, and in Wales you pay Land Transaction Tax (LTT). Both have their own bands, their own thresholds and, in Scotland’s case, its own first-time buyer relief; Wales has no first-time buyer relief at all. The figures in this guide do not apply there, so check the Revenue Scotland or Welsh Revenue Authority rates for those nations before you budget.
Practical tips to keep your bill down
- Confirm your first-time buyer status carefully — if either buyer has ever owned property anywhere, the whole purchase loses the relief.
- Watch the £500,000 cliff-edge if you are a first-time buyer — a price just over the line costs you the entire relief.
- Budget for stamp duty as cash — it is due within 14 days of completion and generally cannot be added to your mortgage.
- Reclaim the surcharge if you paid it on a new main home and sell your old one within 36 months.
- Check whether fixtures reduce the price — the value of removable fittings such as carpets and curtains can sometimes be excluded from the chargeable amount.
- Use a calculator before you offer, so the tax is part of your affordability sums rather than a nasty surprise near completion.
Fit stamp duty into your bigger buying plan
Stamp duty is only one line in the cost of buying, so it helps to see it alongside your deposit, fees and mortgage. If you are buying your first home, our first-time buyer mortgage guide for 2026 walks through deposits, schemes and eligibility, while how much you can borrow in 2026 helps you size the loan itself. Existing owners weighing a move or a rate switch should read our take on where mortgage rates are heading in 2026. To pull it together, our free mortgage calculator estimates both your monthly repayments and your stamp duty in one place, so you can test a purchase price before you make an offer.
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Explore GetSmartSaver →Frequently Asked Questions
What are the stamp duty rates in 2026?
For a main home in England and Northern Ireland in 2026 you pay 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5m and 12% above £1.5m. Each rate applies only to the portion of the price within that band.
How much stamp duty do first-time buyers pay in 2026?
First-time buyers pay nothing on the first £300,000 and 5% on any amount between £300,001 and £500,000. If the property costs more than £500,000 there is no relief and you pay the standard rates on the whole price. On a £300,000 home a first-time buyer pays £0.
What changed on 1 April 2025?
The temporary higher thresholds ended. The nil-rate band for everyone fell from £250,000 to £125,000, and first-time buyer relief was cut — the 0% ceiling dropped from £425,000 to £300,000 and the maximum price for any relief fell from £625,000 to £500,000. These lower thresholds still apply in 2026.
How much is the stamp duty surcharge on a second home?
An extra 5% is added to every band when you buy an additional residential property such as a second home or buy-to-let. This surcharge rose from 3% to 5% on 31 October 2024 and remains 5% in 2026. Non-UK residents pay a further 2% on top.
Do stamp duty rates apply in Scotland and Wales?
No. SDLT covers only England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT), each with its own bands and thresholds. Check Revenue Scotland or the Welsh Revenue Authority for those rates.
When do I have to pay stamp duty?
SDLT is due within 14 days of completing your purchase. Your conveyancer or solicitor normally files the return and pays HMRC on your behalf, but the money must come from you — it usually cannot be added to your mortgage, so budget for it as cash.
Last reviewed: July 2026. This article is for general information only and does not constitute financial advice. Stamp duty rules and thresholds can change — always check the current SDLT rates at gov.uk, or confirm with a conveyancer, before you commit to a purchase.
