Buying a home is exciting, but understanding all the costs involved is crucial. One key cost in England, Wales, and Northern Ireland is Stamp Duty Land Tax (SDLT) — a tax applied when you purchase property. This guide breaks down the rules and includes a simple calculator to estimate your Stamp Duty.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax paid on property purchases over a certain price threshold. Rates differ depending on whether you are a first-time buyer, buying an additional property, or purchasing a buy-to-let or second home.
Current Stamp Duty Rates (England & Northern Ireland, 2025)
| Property Price | Standard Rate | First-Time Buyer Rate |
|---|---|---|
| Up to £250,000 | 0% | 0% |
| £250,001–£925,000 | 5% | 5% above £425,000 |
| £925,001–£1.5M | 10% | N/A |
| Above £1.5M | 12% | N/A |
Note: Wales has its own Land Transaction Tax (LTT) and Scotland uses Land and Buildings Transaction Tax (LBTT). Check local rules if buying there.
Who Pays Stamp Duty?
- All property buyers in England and Northern Ireland.
- First-time buyers may be eligible for relief on properties under £425,000.
- Buy-to-let or second-home buyers pay an extra 3% on top of standard rates.
Example Calculations
Example 1: A first-time buyer purchasing a £300,000 home:
- First £250,000: 0% = £0
- Next £50,000: 5% = £2,500
- Total Stamp Duty: £2,500
Example 2: Someone buying a £600,000 home as a second property:
- £0–£250,000: 0% = £0
- £250,001–£600,000: 5% = £17,500
- Additional 3% surcharge: £600,000 × 3% = £18,000
- Total Stamp Duty: £35,500
Tips for Homebuyers
- Check your eligibility for reliefs – especially first-time buyers.
- Consider timing – buying slightly below a threshold can save thousands.
- Plan for additional costs – solicitor fees, surveys, and mortgage fees also add up.
Stamp Duty Summary
Understanding Stamp Duty can help you budget effectively when buying a home. Use the calculator above to estimate your costs and make informed decisions. Your local estate agent is here to guide you through every step.