What is Stamp Duty and How Much Does it Cost?
Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Stamp Duty is a tax paid on homes and land bought in England or Northern Ireland for £125,000 or more. Different rules apply in Scotland and Wales.
Some exemptions exist for first-time buyers, who pay no Stamp Duty on properties bought for up to £300,000.
It applies to freehold and leasehold properties bought outright or with a mortgage. Non-UK residents purchasing property in England or Northern Ireland may have to pay an additional 2% on top of the existing rate due.
Use our calculator below to determine how much stamp duty could be payable on the property you’re looking to buy. Then, read on to learn all you need to know about the different thresholds and how this is all calculated.
Stamp Duty Calculator
This calculator can tell you how much Stamp Duty Land Tax you will need to pay on your property purchase, whether you're a first-time buyer, a home-mover or in the market for an investment property.
Your stamp duty to pay is:
Your effective tax rate is
Now that you've worked out how much stamp duty is payable, it's a good idea to talk to a broker about your mortgage options. Their knowledge and expertise can help you make sure you aren't paying over the odds with all costs and fees factored in.
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How is Stamp Duty calculated?
Rates are separated into bands and calculated as a progressive rate system. This means that, rather than paying a flat rate for the whole property, you pay a different percentage on each portion according to the price.
This is illustrated below:
| Property Value | Stamp Duty Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Any portion above £1.5 million | 12% |
(Updated: September 2025)
So, if you bought a house for £400,000, your stamp duty would be calculated as follows:
| First £125,000: | 0% (£0) |
| Portion from £250,000 to £925,000: | 5% (£7,500) |
| Total stamp duty payable: | £7,500 |
NB: These rates are due on primary residential homes for those who are not first-time buyers.
Non-standard rates
Rates differ slightly for:
- First-time buyers
- Additional homes (including buy-to-lets)
- New leasehold properties
First-time buyers
First-time buyers pay no Stamp Duty on properties bought for up to £300,000. To qualify for this tax relief as a first-time buyer, you must have never owned a home previously in the UK or abroad. You are ineligible even if you inherited property and sold it immediately without ever living in it.
Stamp Duty rates for first-time buyers are:
| Up to £300,000: | 0% |
| Portion from £300,001 - £500,000: | 5% |
(Updated: September 2025)
There is no tax relief if the purchase price is above £500,000. If this is the case, the rules and standard rates for anyone buying a home will apply (outlined above).
So, Stamp Duty for first-time buyers purchasing a home for £400,000 will be:
| First £300,000 | 0% (£0) |
| Portion from £300,001 - £500,000: | 5% (£5,000) |
| Total Stamp Duty payable: | £5,000 |
Additional homes
The rates for additional homes are 3% above the standard rate:
| Property Value | Stamp Duty Rate |
|---|---|
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Any portion above £1.5 million | 17% |
(Updated: September 2025)
NB: No Stamp Duty is paid on additional homes bought for under £40,000. If you buy a home for between £40,000 and £125,000, you will pay 5% Stamp Duty on the entire price of the property, not just the portion above £40,000.
Leasehold homes
Generally, Stamp Duty for leasehold homes is the same as for any other property.
However, when buying a new build or a property that has recently been divided into individual leaseholds, you will pay an extra 1% if the total value of the rent due over the lifetime of the mortgage exceeds £125,000.
Exemptions
Stamp Duty is not payable on:
- Caravans
- Mobile homes
- Houseboats
- Properties transferred by pursuance of a court order
- Property inherited in a will
- Gifted property
When is it payable?
Stamp Duty must be paid within 14 days of completion. Often, your solicitor will do this for you, but you remain legally responsible for ensuring it is paid on time.
You must submit a return even if no stamp duty is due.
Stamp Duty can significantly impact affordability and your overall cost of borrowing. Some lenders will allow you to add Stamp Duty to your mortgage, but you must consider this carefully as it will affect your repayments and loan-to-value ratio.
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Pete Mugleston
CeMAP Mortgage Advisor, MD
Pete, a CeMAP-qualified mortgage advisor and an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and his love of helping people reach their goals led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!
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