UK Stamp Duty Explained: How Much Will You Pay in 2026/27?

What stamp duty is

Stamp Duty Land Tax, usually shortened to SDLT, is paid when you buy residential property in England or Northern Ireland above the relevant threshold. It is charged in slices, so you do not pay one rate on the whole purchase price. Instead, each portion of the price is taxed at the rate for that band. That is why a small price increase does not suddenly make the whole property taxable at a higher rate.

For a quick estimate, use the AtlasPeak UK Stamp Duty Calculator before reading the worked examples below. The calculator applies the 2026/27 England and Northern Ireland bands, first-time buyer relief where eligible, and the additional property surcharge.

The 2026/27 SDLT bands

For a single residential property, SDLT is 0% on the first 125,000, 2% on the portion from 125,001 to 250,000, 5% from 250,001 to 925,000, 10% from 925,001 to 1.5 million, and 12% above 1.5 million. These bands apply to the slice of the price in each range, not the whole price.

First-time buyer relief is more generous, but only if everyone buying is a first-time buyer and the property costs 500,000 or less. The first 300,000 is charged at 0%, then the portion from 300,001 to 500,000 is charged at 5%. If the price is above 500,000, the relief is lost and normal home mover rates apply.

Additional property surcharge

If the purchase means you will own more than one residential property, the higher rates usually apply. The surcharge is 5 percentage points added to each standard SDLT band. In practice that means the first slice is charged at 5%, the next at 7%, then 10%, 15%, and 17%. There are rules for replacing a main residence, refunds, companies, trusts, linked purchases, and non-UK residents, so complex cases need specialist advice.

The key planning point is that the additional-property surcharge applies across the price, not just above a threshold. It can therefore add a large cash cost to a buy-to-let, second home, or purchase completed before the previous main residence is sold.

Worked examples

At 250,000, a home mover pays 0% on the first 125,000 and 2% on the next 125,000, giving SDLT of 2,500. A first-time buyer eligible for relief pays nothing at this price. An additional-property buyer pays 5% on the first 125,000 and 7% on the next 125,000, giving 15,000.

At 400,000, a home mover pays 0 on the first 125,000, 2,500 on the next 125,000, and 7,500 on the remaining 150,000, for total SDLT of 10,000. A first-time buyer pays 5% on the 100,000 above 300,000, giving 5,000. An additional-property buyer pays the standard amount plus the surcharge slices, giving a much higher result.

At 600,000, first-time buyer relief no longer applies. A buyer uses normal rates: 0% to 125,000, 2% to 250,000, and 5% on the remaining 350,000. The total is 20,000 for a standard purchase before any special rules.

How to use the estimate

Stamp duty is a completion cost, so it needs to be funded alongside deposit, legal fees, valuation fees, surveys, mortgage fees, removals, and early repairs. It is not usually added to a standard residential mortgage in the same way as the purchase price, so buyers should plan it as cash needed on completion.

Use the UK Stamp Duty Calculator again once you know the likely price and buyer type. It gives the band-by-band calculation, effective rate, and a reminder that Scotland and Wales use different property tax systems.