Stamp Duty Land Tax (SDLT) is one of the largest upfront costs when buying property in England and Northern Ireland. Yet many buyers are caught off guard by how much they owe — or miss out on relief they were entitled to.

This guide explains exactly how stamp duty is calculated, including the current 2025 rates, first-time buyer rules, and worked examples.

Use our Stamp Duty Calculator to get an instant figure for your purchase.

What Is Stamp Duty?

Stamp Duty Land Tax is a tax paid to HMRC when you purchase a property in England or Northern Ireland above a certain price threshold. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT) — the rates and thresholds differ.

You must pay SDLT within 14 days of completing your property purchase.

Current Stamp Duty Rates (England, 2025)

Stamp duty works in bands — like income tax. You only pay the rate on the portion of the price within each band, not the whole purchase price.

Property value	SDLT rate
Up to £250,000	0%
£250,001 to £925,000	5%
£925,001 to £1,500,000	10%
Over £1,500,000	12%

First-Time Buyer Relief

If you are buying your first home, you benefit from higher zero-rate thresholds:

Property value	SDLT rate
Up to £425,000	0%
£425,001 to £625,000	5%
Over £625,000	Standard rates apply — no FTB relief

Important: First-time buyer relief only applies if the property costs £625,000 or less. If the property costs more than £625,000, you pay the standard rates on the full price.

Additional Property Surcharge

If you are buying a second home, buy-to-let property, or any residential property when you already own one, a 3% surcharge applies on top of the standard rates across all bands.

Property value	Additional property rate
Up to £250,000	3%
£250,001 to £925,000	8%
£925,001 to £1,500,000	13%
Over £1,500,000	15%

How to Calculate Stamp Duty: Step by Step

Example: Buying a £400,000 property as a standard purchaser

On the first £250,000: 0% = £0
On the remaining £150,000 (£250,001 to £400,000): 5% = £7,500

Total SDLT: £7,500

Example: First-time buyer purchasing a £500,000 home

On the first £425,000: 0% = £0
On the remaining £75,000 (£425,001 to £500,000): 5% = £3,750

Total SDLT: £3,750

Compare this to the £12,500 a standard buyer would pay on the same property — a saving of £8,750.

Example: Buying a £300,000 second home

On the first £250,000: 3% = £7,500
On the remaining £50,000: 8% = £4,000

Total SDLT: £11,500

How to Work It Out Instantly

Rather than doing the banding maths manually, use our Stamp Duty Calculator. Enter the purchase price and select whether you are a first-time buyer or purchasing an additional property — you will get an exact figure in seconds.

When Do You Pay Stamp Duty?

Your solicitor or conveyancer will typically handle the SDLT submission and payment on your behalf. The tax is due within 14 days of completing the purchase. It is usually paid on completion day, deducted from the funds you provide to your solicitor.

Do I Pay Stamp Duty on New Builds?

Yes — the same rates apply to new build purchases. However, some developers offer to pay the stamp duty as a purchase incentive. If your developer is offering this, make sure you understand whether they are paying the actual tax or simply reducing the purchase price by an equivalent amount.

How to Calculate Stamp Duty in the UK (2025 Guide)