Stamp Duty Calculator
Last updated: 27 June 2026
Reviewed by Gavin Meiring, Lead research and primary author · Doctoral Candidate (Corporate Governance) · Research and drafting assisted by AI
- Stamp duty was invented in the Netherlands in 1624, and Britain copied the idea in 1694 under King William III to help pay for war with France.
- The tax was literally a physical stamp: a government official impressed or affixed a stamp to documents as proof the duty had been paid.
- American colonists' fury at the British Stamp Act of 1765 — 'no taxation without representation' — helped ignite the American Revolution; the UK's modern SDLT replaced old-style stamp duty on property in December 2003.
Stamp Duty Calculator
A stamp duty calculator works out the Stamp Duty Land Tax (SDLT) you owe when buying a residential property in England or Northern Ireland. It is used by first-time buyers, home movers, and property investors who want to budget accurately for the full cost of a purchase. The amount owed depends on the property price, the buyer's status, and whether additional dwellings are involved.
How to Use the Stamp Duty Calculator
- Enter the purchase price of the property.
- Select your buyer type: first-time buyer, home mover, or additional property buyer (second home or buy-to-let).
- Indicate whether you are replacing your main residence.
- The calculator applies the current SDLT bands and rates to your purchase price.
- Review the breakdown by band and the total SDLT due.
The Formula
Stamp Duty Land Tax is calculated on a tiered basis, similar to income tax. You pay each rate only on the portion of the price that falls within each band.
For standard residential purchases (2024/25 rates): 0% on the first £250,000 5% on the portion between £250,001 and £925,000 10% on the portion between £925,001 and £1,500,000 12% on the portion above £1,500,000
For first-time buyers (on purchases up to £625,000): 0% on the first £425,000 5% on the portion between £425,001 and £625,000 (Standard rates apply to purchases above £625,000)
For additional residential properties (second homes, buy-to-let): Add 3% surcharge to each band above
Total SDLT = sum of (portion in each band multiplied by band rate)
Real-World Example
You are buying a home as a standard home mover for £400,000.
First £250,000 at 0% = £0 Remaining £150,000 (from £250,001 to £400,000) at 5% = £7,500
Total SDLT due = £7,500.
Now compare this to a first-time buyer purchasing the same £400,000 property.
First £425,000 at 0% = £0 (the property price of £400,000 falls entirely within this band)
Total SDLT due = £0.
The first-time buyer saves £7,500 in stamp duty on this purchase, a substantial reduction that makes a real difference to the total funds required at completion.
For an investor buying the same property as a second home:
First £250,000 at 3% (0% plus 3% surcharge) = £7,500 Remaining £150,000 at 8% (5% plus 3% surcharge) = £12,000
Total SDLT due = £19,500, significantly higher than the standard rate.
Tax by price
The same four buyer types at a range of prices, worked from the bands above.
| Price | Home mover | First-time buyer | Additional property | Additional, non-resident |
|---|---|---|---|---|
| £250,000 | £0 | £0 | £7,500 | £12,500 |
| £300,000 | £2,500 | £0 | £11,500 | £17,500 |
| £400,000 | £7,500 | £0 | £19,500 | £27,500 |
| £500,000 | £12,500 | £3,750 | £27,500 | £37,500 |
| £625,000 | £18,750 | £10,000 | £37,500 | £50,000 |
| £925,000 | £33,750 | £33,750 | £61,500 | £80,000 |
| £1,000,000 | £41,250 | £41,250 | £71,250 | £91,250 |
| £1,500,000 | £91,250 | £91,250 | £136,250 | £166,250 |
| £2,000,000 | £151,250 | £151,250 | £211,250 | £251,250 |
Three things stand out in that table. First-time buyer relief holds the bill at zero all the way to £425,000, so the whole band from £250,000 to £425,000 costs a qualifying buyer nothing. At £625,000 and above the first-time buyer column and the home mover column are identical, because the relief has stopped applying. The additional property column is higher than the home mover column at every price, and the non-resident column is higher again.
Effective rates
The effective rate is the total bill divided by the purchase price. It is always lower than the top band rate the buyer actually reaches, because the lower bands stay cheap.
| Price | Home mover | Additional property |
|---|---|---|
| £400,000 | 1.9% | 4.9% |
| £625,000 | 3.0% | 6.0% |
| £925,000 | 3.6% | 6.6% |
| £1,000,000 | 4.1% | 7.1% |
| £1,500,000 | 6.1% | 9.1% |
| £2,000,000 | 7.6% | 10.6% |
A home mover at £400,000 pays an effective 1.9 percent even though the marginal rate on the top slice is 5 percent. An additional property buyer at £2,000,000 pays an effective 10.6 percent against a marginal rate of 15 percent. The gap between the two columns is the surcharge showing up across the whole price rather than only at the top.
The £625,000 step
The first-time buyer rules create a step rather than a slope, and it is the single largest cliff in the system.
At exactly £625,000 the relief applies in full. The first £425,000 is free and the remaining £200,000 is charged at 5 percent, which gives £10,000. Add £5,000 to the price and the relief stops applying altogether. The standard bands then charge 5 percent on everything above £250,000, which is £380,000, and the bill becomes £19,000.
So £5,000 of extra price adds £9,000 of tax. On that £5,000 slice the marginal rate is 180 percent. A first-time buyer considering a home priced just above the threshold faces a bill nearly twice the size of one priced just below it, and the difference is usually worth negotiating into the price.
Marginal rates
Each band carries its own marginal rate, and the two surcharges stack on top of the standard rates.
| Band | Home mover | Additional property | Additional, non-resident |
|---|---|---|---|
| Up to £250,000 | 0% | 3% | 5% |
| £250,001 to £925,000 | 5% | 8% | 10% |
| £925,001 to £1,500,000 | 10% | 13% | 15% |
| Above £1,500,000 | 12% | 15% | 17% |
The 17 percent figure is the highest rate in the system, and it is the sum of three parts: 12 percent standard, 3 percent additional dwelling surcharge, and 2 percent non-resident surcharge. Those three apply together only on the portion of a price above £1,500,000.
A band-by-band working
Take a £1,500,000 purchase as a home mover, which reaches the top of the 10 percent band.
£0 to £250,000 at 0% = £0 £250,000 to £925,000, which is £675,000, at 5% = £33,750 £925,000 to £1,500,000, which is £575,000, at 10% = £57,500 Total = £91,250
The same property bought as an additional dwelling:
£250,000 at 3% = £7,500 £675,000 at 8% = £54,000 £575,000 at 13% = £74,750 Total = £136,250
The difference between the two totals is £45,000, which is exactly 3 percent of £1,500,000. That is the useful check on any surcharge calculation: the surcharge equals 3 percent of the price, whatever the bands do in between.
The refund case
The surcharge falls on a buyer who owns another property at completion, even when they intend to sell it. That catches anyone moving house in a chain where the purchase completes first.
Take a buyer who owns a home worth £300,000 and buys a replacement for £450,000 before the old house sells. At completion the additional rate applies: £250,000 at 3 percent is £7,500, and £200,000 at 8 percent is £16,000, which is £23,500 in total. Sell the old home within 12 months and the 3 percent surcharge is refundable, and 3 percent of £450,000 is £13,500.
The net cost after the refund is £10,000, which is exactly the home mover figure for a £450,000 purchase: £200,000 at 5 percent. The refund restores the buyer to the standard position, and it does so only if the sale completes inside the 12 month window.
Additional Stamp Duty Considerations
Scotland and Wales have their own property transaction taxes. In Scotland, Land and Buildings Transaction Tax (LBTT) applies, with different bands and rates. In Wales, Land Transaction Tax (LTT) is used. Both have broadly similar structures to SDLT but with different thresholds.
The 3% additional dwelling surcharge applies to any purchase of a residential property if you already own another. If you are replacing your main residence (selling your existing home to buy a new one), the surcharge does not apply, even if there is a gap between sale and purchase. You can claim a refund of the surcharge within 12 months if you later sell your previous main home.
Non-UK residents purchasing residential property in England and Northern Ireland pay an additional 2% surcharge on top of standard rates. This takes the top rate for a non-resident buying an additional property to 17%.
Payment is due within 14 days of completing the property purchase. Your solicitor or conveyancer typically handles the SDLT return and payment on your behalf.
Frequently Asked Questions
When did the current stamp duty thresholds come into force? The current thresholds were set following the September 2022 mini-budget, which doubled the nil-rate band from £125,000 to £250,000. These rates were originally described as temporary and were due to revert in April 2025, but at the time of writing they remain subject to government policy decisions. Always verify current rates with HMRC or a solicitor before exchange.
Do I pay stamp duty on a gifted property? If a property is gifted with no money changing hands and there is no mortgage on it, no SDLT is due. However, if the property is gifted with a mortgage that the recipient takes over, SDLT is payable on the outstanding mortgage value. Similarly, if a property is transferred at below-market value between connected persons in certain circumstances, SDLT may still be assessed on the market value.
Can stamp duty be added to a mortgage? Technically, some lenders allow stamp duty to be added to the mortgage amount, but this is unusual and means you pay interest on the SDLT for the life of the loan. Most buyers are expected to pay SDLT from their own funds at completion. Always check with your mortgage lender about their policy before relying on this option.
Is there stamp duty relief for properties under £40,000? Purchases of properties valued at less than £40,000 are exempt from SDLT entirely. This threshold also applies to leasehold purchases where the premium is under £40,000. Additionally, certain types of property, such as caravans, mobile homes, and houseboats, may be exempt depending on their structure and permanence.
Also try these free tools related to Stamp Duty Calculator: - Mortgage Calculator