Stamp Duty Land Tax on residential property in England and Northern Ireland

Stamp Duty Land Tax is a progressive tax on property price bands. The standard threshold is £125,000; first-time buyers buying a property up to £500,000 pay nothing on the first £300,000. Scotland and Wales have their own land transaction taxes.

SDLT threshold

£125,000 for standard residential purchases; nothing is SDLT below this threshold.GOV.UK, Stamp Duty Land Tax

Standard SDLT rate bands

0% up to £125,000; 2% on £125,001–£250,000; 5% on £250,001–£925,000; 10% on £925,001–£1.5 million; 12% on the portion above £1.5 million.GOV.UK, SDLT rates for residential property

First-time buyer relief

0% on the first £300,000; 5% on the portion from £300,001 to £500,000. Not available above £500,000.GOV.UK, SDLT rates for residential property

Additional property surcharge

An extra 5% on the standard SDLT rates if the purchase means owning more than one residential property.

SDLT is charged on progressive portions of the property price

Stamp Duty Land Tax applies to residential property purchases in England and Northern Ireland. It is charged as a percentage of each portion of the price that falls within a given band, not as a single rate on the whole price. The threshold is where SDLT starts to apply: a property bought for less than £125,000 carries no SDLT. GOV.UK, Stamp Duty Land Tax (opens in a new tab).

The rates for a single residential property with no other property owned are: 0% on the portion up to £125,000; 2% on the portion from £125,001 to £250,000; 5% on the portion from £250,001 to £925,000; 10% on the portion from £925,001 to £1.5 million; 12% on any portion above £1.5 million. GOV.UK, SDLT rates for residential property (opens in a new tab).

A worked example at each threshold

Site-computed example: a property bought for £295,000 attracts SDLT on three portions: nothing on the first £125,000, 2% on the second £125,000 (£2,500), and 5% on the remaining £45,000 (£2,250), total SDLT £4,750. A property at exactly £125,000 pays zero; a property at £250,000 pays £2,500. This uses the site’s 2026 SDLT calculator for a standard residential purchase in England or Northern Ireland, leaving out first-time buyer relief, surcharges and linked purchases.

First-time buyer relief has a higher threshold and a lower top rate

First-time buyers who purchase a residential property up to £500,000 pay 0% SDLT on the first £300,000 and 5% on the portion between £300,001 and £500,000. GOV.UK, SDLT rates for residential property (opens in a new tab).

Site-computed example: a first-time buyer purchasing a property for £500,000 therefore pays £10,000 SDLT (£10,000 on the £200,000 above £300,000 at 5%), not the £15,000 a non-first-time buyer pays on the same price. This uses the site’s 2026 SDLT calculator and leaves out additional-property and non-resident surcharges and linked purchases.

Relief is available when both the buyer and anyone they are buying with are first-time buyers, provided the price does not exceed £500,000.

The additional property surcharge applies when buying a second home

If, after buying the property, the buyer owns more than one residential property, they usually pay 5% on top of the standard SDLT rates on each portion. This applies whether the second property is in the UK or abroad. The surcharge does not replace the standard SDLT; it is added to it. GOV.UK, SDLT rates for residential property (opens in a new tab).

The 5% surcharge can be reclaimed if the previous main residence is sold within 36 months of completing the new purchase. If the previous main residence has not been sold on the day of completion, the surcharge applies automatically. GOV.UK, SDLT rates for residential property (opens in a new tab).

Scotland and Wales have separate taxes

This guide covers Stamp Duty Land Tax, which applies to residential property in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax; both have their own thresholds and rates. A property buyer in Scotland or Wales uses the relevant devolved tax, not SDLT.

This page is an original explanation based on HMRC and GOV.UK pages under the Open Government Licence v3.0; the wording has been adapted and HMRC does not endorse this website. SDLT rules are not the same in Scotland or Wales. This page does not cover corporate bodies, shared ownership, multiple purchases or leasehold transactions, which each have their own rules. Use HMRC's SDLT calculator to find the amount for a specific transaction.

Related guides