Stamp Duty Explained: How Much Will You Actually Pay?

Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs when buying property in England and Northern Ireland — and one of the most misunderstood. Here’s how it actually works.

The standard rates

SDLT is charged in bands, not as a flat percentage of the full price. Since 1 April 2025, the nil-rate band covers the first £125,000, then the rate rises in stages up to 12% on the portion above £1.5 million. You only pay the higher rate on the portion of the price in that band — not the whole amount.

First-time buyers pay less

If you’re a first-time buyer, you pay nothing on the first £300,000, and a reduced rate on the portion up to £500,000. If the property costs more than £500,000, this relief no longer applies and standard rates kick in on the whole price.

Buying an additional property?

Second homes, buy-to-let purchases, and other additional properties carry a surcharge of 5% on top of the standard rates. This applies to the whole price for most additional-property purchases, so it’s a significant number to budget for when you’re expanding a portfolio.

Work it out for your own numbers

Rather than trying to calculate the bands by hand, use the Stamp Duty calculator on this site — put in the property price and select whether you’re a first-time buyer, home mover, or buying an additional property, and it shows the exact figure and your effective rate.

A few things people forget

• Stamp Duty is due within 14 days of completion — your solicitor usually handles the payment and paperwork, but the funds need to be available.
• Scotland (LBTT) and Wales (LTT) have their own, different systems — the rates above only apply in England and Northern Ireland.
• Stamp Duty is separate from your mortgage — it can’t usually be added to the loan, so it needs to come from your own funds alongside the deposit.

If you’d like help understanding what a purchase will really cost once Stamp Duty, fees and your mortgage are all factored in, get in touch for a free consultation.