Stamp Duty thresholds explained
How Stamp Duty Land Tax is actually calculated in slices, who gets first-time buyer relief, and when the extra-property surcharge applies.
Written by Jack Dev · Last updated 2 October 2026
It's a slice tax, like Income Tax
Buy a property over a certain price in England or Northern Ireland, and Stamp Duty Land Tax (SDLT) applies. Scotland and Wales run their own versions instead — Land and Buildings Transaction Tax and Land Transaction Tax — with different rates, so this guide is specifically about the English and Northern Irish system. Like Income Tax, SDLT is charged in slices: each band of the price gets its own rate, so paying a bit more for a house never retroactively bumps up the rate on the cheaper slices underneath.
Standard residential rates
For a main residence: nothing on the first £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million, and 12% above that. Each rate only bites on its own slice of the price, never the whole purchase.
First-time buyer relief
First-time buyers get a better deal — nothing at all on the first £300,000, provided the whole property costs £500,000 or less, then 5% on the slice between £300,000 and £500,000. Go even a pound over £500,000, though, and the relief disappears entirely — you're back on the standard rates for the full price. Every buyer on the purchase needs to be a genuine first-timer, anywhere in the world, for this to apply.
The extra-property surcharge
Buying a second home or a buy-to-let usually means an extra 5% on top of every band — including the slice that would otherwise be tax-free. Two exceptions worth knowing: it doesn't apply if you're replacing your main home (even briefly owning two while a sale and purchase overlap, as long as the old one sells within 36 months), and it doesn't apply to purchases below £40,000, regardless of how many other properties you own.
Our Stamp Duty Calculator handles all of this automatically — price, first-time buyer status, surcharge or not — and works out the exact bill slice by slice.
Frequently asked questions
In slices, much like Income Tax bands — each portion of the price is taxed at its own rate, so a higher price only increases the rate on the bit above each threshold.
Only up to £300,000, and only if the total property price is £500,000 or less. Go above £500,000 and the relief disappears completely — standard rates apply to the full price.
No, as long as you're replacing your main residence and sell the previous one within 36 months of the new purchase — the surcharge doesn't apply in that case.
This guide is general information, not financial or tax advice — check GOV.UK or a qualified adviser for anything that affects a real financial decision.