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Stamp duty: what you'll actually pay

Stamp Duty Land Tax is one of the biggest costs on top of the price. It's tiered, first-time buyers get relief, and second homes carry a surcharge.

Stamp Duty Land Tax (SDLT) is the tax on buying property in England and Northern Ireland. It catches people out because it isn't a flat percentage of the price.

How the tiers work

You pay a different rate on each slice of the price, not one rate on the whole thing. As of 2025 the standard bands are: nothing on the first £125,000, 2% up to £250,000, 5% up to £925,000, 10% up to £1.5m, and 12% above. So on a £400,000 home you pay 0% on the first £125k, 2% on the next £125k, and 5% on the last £150k, which is £10,000, not a flat 5%.

First-time buyers

If you and everyone buying with you have never owned a home, you pay nothing up to £300,000 and 5% on the slice from £300,000 to £500,000. Above £500,000 the relief vanishes and you pay the standard rates.

The surcharge

If you'll still own another property once the purchase completes, say a second home or a buy-to-let, you pay an extra 5% on top of every band. It also catches you if you complete on the new place before selling the old one, though you can usually reclaim it if you sell within three years.

buyerside works out your exact SDLT in the costs panel of every report, first-time relief and surcharge included.

Check the official sources

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Plain-English guidance for buyers, not legal or financial advice. A buyerside product · © 2026 Arvorithm Labs Ltd.